Kraken co-founder ‘decel’ defies SEC and warns others to flee US
Kraken founder Jesse Powell has come under fire after the US Securities and Exchange Commission (SEC) sued the crypto exchange for violating securities laws.
In the year On Nov. 21 at X (formerly Twitter), Powell called the regulator a “US top tier” — a term used in tech circles to insult someone who slows down growth — and said he wasn't satisfied with the $30 million the SEC spent. From the Kraken as a settlement in February.
U.S. High Diesel has launched another attack on the U.S. The masochists weren't happy with the beating they took in NY and are buying a different flavor of RegDom in CA. I thought we solved all their concerns at $30m in February. Are you back for seconds now? https://t.co/SkfPJyneUz
— Jesse Powell (@jespow) November 21, 2023
In a subsequent post, Powell said the SEC's message to Kraken and other crypto firms is clear and warned other crypto companies to leave the “US warzone” to avoid costly legal battles.
“$30m will buy you 10 months before the SEC comes to exploit you again. Lawyers can do a lot with $30 million, but the SEC knows that a real fight costs $100m+ and significant time. If you can't afford it, get your crypto company out of the US warzone.”
The regulator had previously accused Kraken of “not registering the offering of their crypto assets inventory-as-a-service program”. As part of the settlement, Kraken agreed to pay $30 million and stop providing crypto-staking products and services to US customers.
Related: Kraken Shares Data of 42,000 Users with IRS
Powell's provocative comments came on the heels of a Nov. 20 SEC lawsuit against Kraken on multiple securities law violations.
The SEC accused Kraken of failing to register with the agency as a securities broker and saying it commingled client and corporate funds.
A spokesman for Kraken denied listing unregistered securities and called the lawsuit “unfortunate,” adding that the exchange will defend its position in court.
In a Nov. 20 blog post, Kraken said the SEC's charges “do not exceed the costs Kraken has already incurred,” and the regulator doesn't say any user funds are missing.
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