March 31, 2023

Kraken’s staking services have been shut down as part of a settlement agreement with the Securities and Exchange Commission (SEC). The Northern California-based trading platform has agreed to pay up to $30 million in fees after the SEC accused the company of failing to notify customers about the lack of protections being offered. The SEC also claims that Kraken did not inform investors about the company’s overall health, the fees they charged, or how tokens would be handled. The complaint against Kraken comes after Coinbase’s competitor was targeted by the SEC and other organizations for crypto staking. Coinbase CEO Brian Armstrong had previously expressed concern about the SEC’s actions, and it appears that his fears were justified. The SEC’s crackdown on crypto staking is likely to have a significant impact on the industry, with many companies now facing increased scrutiny and potential legal action.

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