(2023)
SEC v. Kraken
Year
2023
Criminal or Civil
Civil
Year Resolved
2023
Jurisdiction (Court/State)
U.S. District Court (unspecified, but SEC jurisdiction likely NY/DC)
Filed By
U.S. Securities and Exchange Commission (SEC)
Penalty/Fine (USD)
$30 million (disgorgement, prejudgment interest, civil penalty)
Lawsuit Overview
The SEC charged Kraken for offering unregistered securities through its staking-as-a-service program, which promised up to 21% returns to investors. The company agreed to discontinue the program and pay $30 million in penalties as part of a settlement.
Category
Unregistered Securities Offering (Staking-as-a-Service)
Notable Individuals Involved
SEC Chair Gary Gensler
Gurbir Grewal (Director of Enforcement)
Kraken corporate entities (Payward Ventures & Payward Trading Ltd.)
Investor Loss Estimate
Not publicly quantified; investor risk cited due to lack of disclosures and retained control by Kraken over assets and returns
Final Outcome
Settled – Kraken ceased staking services in the U.S. and agreed to permanent injunction
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