The Securities and Exchange Commission on November 2023 sued Kraken alleging that the company failed to standardize it's registration and also diverting customers funds with its own funds which would lead to customers loss of funds. According to the statement made by SEC, is kraken isn't stopped it would lead to be big disaster which could lead to be potential pandemonium in the crypto market as it affects customers funds.
Because of this lawsuit, the company discontinued it's staking service in the U.S and where charged to pay $30 million as penalties. This automatically reduced the rate at which revenue is been yield in the company leading to a big decrease in the way activities are been ran in the company. Kraken already been known and now facing this kind of big lawsuit raised an uproar between SEC and the owners of kraken though kraken before now already pledge to not being guilty of this allegations and are fighting to get their freedom back but the news that broke out today saw kraken rejoice once more in their operations as the lawsuit and charges were dropped by SEC.
The Plot and Play out Against Crypto
Firstly, the SEC should undergo some questioning. This is so because, yes we understand they oversee the activities that happen in finance and crypto space once it concerns digital and more, having known that they also have issues with other bigger exchanges like coinbase, binnace and more, how is it that they found a bit of such activity on Kraken and all of a sudden after limiting the revenue and activities kraken do have and then come up all of a sudden that they have dropped their charges meaning that what they saw that led to the lawsuit they didn't see it again or wasn't that they were just unsure and decided to hurt the activities on Kraken?. Do they not base their observations on concrete evidences before going for a lawsuit or they just feel something and then boom, lawsuit?
Could this be a plot from the government or other exchanges to hurt kraken so that the revenue they have or do get from their customers would be limited so SEC then have to conieve with other bigger exchanges to pull kraken done or is there something SEC isn't telling us that happens at the background? Kraken is a company and ofcourse they do have their revenue so advances to stop or fight their progress shouldn't be taken slightly most especially when it's coming from their competitors that's if they have their hands on it.
Why is it that SEC base their lawsuits on firms that have financial dealings with only policies followed by lawsuits. Why don't they bring in solid evidences to back up their claims if they are actually right? Shouldn't they even come up with a better way to insure that they are equally to the task they are assigned to do rather than relying on policies that basically needs to be reviewed and reformed.
Lastly these exchanges should prepare for more from SEC because truth be told they can't just back off, they might be planning a bigger surprise on these exchanges which could take them unawares and they can be victims at the long run.
Therefore, SEC should understand that the crypto space isn't here to destroy but to grow and help the economy the more.