In a recent turn of events, Jesse Powell, co-founder of Kraken, expressed strong dissatisfaction with the United States Securities and Exchange Commission (SEC) following a lawsuit accusing the crypto exchange of securities law violations.
Powell took to social media on Nov. 21, referring to the SEC as the “USA’s top decel,” a term within tech circles to criticize someone hindering progress. He asserted that the SEC, despite having already settled for $30 million with Kraken in February, wasn’t content and issued a warning to other crypto companies.
Jesse Powell Exposes SEC’s Message and Warning
According to Jesse Powell, the SEC’s message to Kraken and other crypto firms is explicit. He cautioned them to exit the “US warzone” to sidestep costly legal battles, stating, “$30m buys you about 10 months before the SEC comes around to extort you again.”
The SEC had previously charged Kraken with “failing to register the offer and sale of their crypto asset staking-as-a-service program.” In the settlement, Kraken agreed to pay $30 million and cease offering crypto-staking products and services to U.S. customers.
Latest Lawsuit and Denial
Powell’s remarks followed a Nov. 20 lawsuit from the SEC, which accused Kraken of multiple securities law violations. The charges included failure to register as a securities broker and allegations of commingling customer and corporate funds.
A spokesperson for Kraken denied the accusation of listing unregistered securities, deeming the lawsuit “disappointing.” Kraken asserted its commitment to defending its position in court, emphasizing that the SEC’s commingling claims were simply the exchange using fees it had already earned.