Crypto
Crypto exchange Kraken says Securities and Exchange Commission to dismiss lawsuit
Crypto prices jump after Trump sets plan for US strategic reserve
Prices for bitcoin and the like have soared after Donald Trump set out plans for a U.S. cryptocurrency reserve. He said in a social media post that the stockpile would include bitcoin and ether, as well as smaller tokens XRP, solana and cardano.
Kraken, one of the world’s largest cryptocurrency exchanges, said on Monday the U.S. Securities and Exchange Commission agreed in principle to dismiss a civil lawsuit accusing it of operating illegally as an unregistered securities exchange.
In a statement on its blog, Kraken called the dismissal a turning point for cryptocurrency that ended a “wasteful, politically motivated campaign” begun during the Biden administration, and which stifled innovation and investment.
Kraken said the dismissal includes no admission of wrongdoing, no penalties, and no changes to its business. It also said the dismissal is with prejudice, meaning the SEC cannot bring the case again.
“This case was never about protecting investors,” Kraken said. “It undermined a nascent industry that repeatedly urged clear rules of the road.
“We appreciate the new leadership both at the White House and the Commission that led to this change,” Kraken added.
The SEC declined to comment.
Kraken had been sued in November 2023, as part of former SEC Chair Gary Gensler’s push to bring cryptocurrency under the regulator’s purview.
But the SEC has pulled back on crypto oversight since U.S. President Donald Trump began his second White House term in January.
Last week, the SEC ended a similar lawsuit against Coinbase COIN.O, the largest U.S. cryptocurrency exchange, and said it may resolve its civil fraud case against Justin Sun, the Chinese entrepreneur and adviser to a Trump-backed crypto project.
Trump, meanwhile, nominated Paul Atkins, a Washington lawyer seen as supportive of digital assets, to succeed Gensler as SEC chair.
The SEC had accused Payward and Payward Ventures, which operate as Kraken, of having since 2018 made hundreds of millions of dollars arranging purchases and sales of 11 crypto assets while turning a “blind eye” to securities laws.
Kraken was also accused of having deficient internal controls and record keeping.
Like the vast majority of the cryptocurrency industry, Kraken argued that crypto assets, unlike stocks and bonds, did not qualify as investment contracts subject to SEC oversight.
A federal judge in San Francisco denied Kraken’s bid to dismiss the case last August.
Kraken is the world’s 10th-ranked cryptocurrency spot exchange based on traffic, liquidity, trading volumes, and confidence in the legitimacy of reported trading volumes, according to CoinMarketCap.
Reporting by Jonathan Stempel in New York; Additional reporting by Chris Prentice; Editing by Sharon Singleton and Bill Berkrot
Crypto
Westlake police say cryptocurrency scam cost woman over $5,000
WESTLAKE, Ohio – A convenience store clerk at 1:30 p.m. on Nov. 26 alerted a police dispatcher that a female customer was feeding large amounts of cash into a cryptocurrency ATM at the store on Center Ridge Road at Dover Center Road.
The clerk said the customer would not believe the clerk’s warning that she was being scammed.
Officers arrived to find the 71-year-old still “anxiously depositing” cash into the machine. Officers told her to stop, but she did not believe the uniformed men. The officers talked to her for several minutes before she finally believed that there was an issue. She was still on the phone with the scammer at the time.
The incident started that morning when the victim received a pop-up message on her home computer instructing her to call a provided support phone number due to a supposed issue with the computer’s operating system. She called the number and was connected to a man who claimed he was a representative from Apple, according to a police department press release.
The man talked her into allowing him remote access to her computer while he asked for her bank information. The scammer talked the victim into believing that there was a problem with her accounts, and she was at risk of losing $18,000 in connection with pornographic websites out of China or Mexico.
She was connected to a fake fraud department for her bank, and another scammer persuaded her to go to a bank and withdraw as much cash as they would allow. The scammer even told her to give the teller a story about needing cash to buy a car. The perpetrator kept the woman on the phone as she took out cash and traveled to the crypto ATM. The victim had deposited approximately $5,500 before officers persuaded her to stop. The Westlake Detective Bureau is attempting to recover the lost funds.
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Read more from the West Shore Sun.
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