Last November, the Securities and Exchange Commission (SEC) filed a lawsuit against Kraken in the Northern District of California. The SEC is seeking to permanently enjoin the exchange from engaging in further securities violations. In addition, the regulator is looking to obtain disgorgement of Kraken’s “ill-gotten gains” and impose other civil penalties.
The SEC has identified 11 tokens that it alleges were being traded as unregistered securities on the Kraken platform. These tokens include ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, and SOL.
It is important for cryptocurrency exchanges to comply with securities regulations to ensure the protection of investors and maintain the integrity of the market.
