Kraken co-founder Jesse Powell has lashed out on the United States Securities and Exchange Commission (SEC) after it sued his crypto trade for alleged securities legislation violations.
In a Nov. 21 post on X (previously Twitter), Powell known as the regulator “USA’s top decel” — a time period utilized in tech circles to insult somebody who slows progress — and claimed the SEC wasn’t happy with the $30 million it levied from Kraken as a settlement in February.
USA’s prime decel is again with one other assault on America. The masochists have not been proud of the beatings they have been taking in NY and are searching for a distinct taste of RegDom in CA. I assumed we settled all their considerations for $30m in Feb. Now they’re again for seconds? https://t.co/SkfPJyneUz
— Jesse Powell (@jespow) November 21, 2023
In a follow-up post, Powell stated the SEC’s message to Kraken and different crypto companies was clear and warned different crypto corporations to depart “the US warzone” to keep away from costly authorized battles.
“$30m buys you about 10 months before the SEC comes around to extort you again. Lawyers can do a lot with $30m but the SEC knows that a real fight will likely cost $100m+, and valuable time. If you can’t afford it, get your crypto company out of the US warzone.”
The regulator had beforehand charged Kraken with “failing to register the offer and sale of their crypto asset staking-as-a-service program.” As a part of its settlement, Kraken agreed to pay $30 million and stop providing crypto-staking services and products to U.S. prospects.
Related: Kraken will share data of 42,000 users with IRS
Powell’s incisive feedback come after a Nov. 20 lawsuit from the SEC pinned Kraken on a number of securities legislation violations.
The SEC accused Kraken of failing to register with the company as a securities dealer and claimed it had commingled buyer and company funds.
A Kraken spokesperson denied it listed unregistered securities and described the lawsuit as “disappointing,” saying the trade would defend its place in courtroom.
In a follow-up Nov. 20 weblog post, Kraken stated the SEC’s commingling accusations have been “no more than Kraken spending fees it has already earned,” and the regulator doesn’t allege any consumer funds are lacking.
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