Just-In: Kraken Faces Legal Hurdle As Judge Denies Appeal To Dismiss US SEC Lawsuit

The legal pressure of the leading crypto exchange, Kraken, appears to be mounting as a US judge has denied its appeal to dismiss the SEC lawsuit. According to the latest court filing, US District Judge William H. Orrick has dismissed Kraken’s motion, ordering the exchange to answer the “complaint” within 20 days of the order. Notably, this development comes just after the exchange records a legal defeat against the Australian Securities and Investments Commission (ASIC).

Kraken Faces Legal Woes In US SEC Lawsuit

District Judge William H. Orrick’s ruling underscores the US SEC’s stance that Kraken may have facilitated unregistered securities transactions. A recent court filing showed that the judge stated that the SEC has plausibly alleged that some of the cryptocurrency transactions on Kraken’s platform could be considered investment contracts. Having said that, it is subject to securities laws, the judge said.

Notably, the exchange has argued that its operations do not involve securities and thus should not fall under the SEC’s regulatory oversight. However, the court’s decision to deny the crypto exchange’s motion to dismiss the case suggests that the exchange could face a lengthy legal battle ahead.

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