On November 19, a judge in California rejected Kraken’s interlocutory appeal motion, according to Coindesk. The ruling stated that allowing the appeal would only “delay” the resolution of the ongoing case against the cryptocurrency exchange before the U.S. Securities and Exchange Commission (SEC).
Kraken filed an interlocutory appeal motion in September after Judge William Orrick of the U.S. District Court for the Northern District of California ruled that the SEC reasonably charged that the cryptocurrency sold on Kraken’s platform may have been illegal under the Howey Test. securities.In his ruling, Orrick emphasized that allowing interlocutory appeals was “entirely discretionary” and argued that appeals would not materially speed up the end of the proceedings.The SEC sued Kraken last November, accusing it of operating as an unregistered securities exchange, broker, dealer and clearing house, demanding the return of ill-gotten gains and civil penalties, and imposing a permanent ban on the exchange.
Kraken denied any wrongdoing and applied to dismiss the case, but the request was denied in August.