SEC v. Kraken (Enforcement Action) event

Event · PageRank 0.0008

Also known as: SEC Kraken case

Overview

On February 9, 2023 the SEC announced settled charges against Payward Ventures, Inc. and Payward Trading, Ltd. — the entities operating the Kraken exchange — for failing to register the offer and sale of their crypto asset staking-as-a-service program. The SEC alleged Kraken pooled customers' staked assets and advertised annual returns of as much as 21%, holding over $2.7 billion of U.S. investors' crypto and earning roughly $147 million in related revenue. Kraken agreed to pay $30 million in disgorgement, prejudgment interest and civil penalties, and to immediately cease offering staking services to U.S. customers, without admitting or denying the allegations. It was one of the SEC's earliest enforcement actions aimed specifically at staking products.

Within the DeFi Intel graph, SEC v. Kraken (Enforcement Action) connects to 1 tracked entity, most strongly to Kraken.

Relations

Top connections in the DeFi Intel knowledge graph (confidence-weighted, 1 of 1 total).

Frequently asked questions

What did Kraken agree to in the SEC settlement?

Kraken's Payward entities paid $30 million in disgorgement, prejudgment interest and civil penalties and immediately ceased offering their crypto staking-as-a-service program to U.S. customers, without admitting or denying the allegations.

When was the settlement announced?

February 9, 2023.

What was the SEC's theory of the case?

The SEC said Kraken's staking program was an unregistered offer and sale of securities: investors transferred crypto to Kraken in exchange for advertised returns of up to 21%, with over $2.7 billion of U.S. investor assets on the platform and about $147 million in revenue to Kraken.