The United States Securities and Exchange Commission (SEC) has slapped cryptocurrency trading platform Kraken with an investigation over alleged unregistered securities sales.
Bloomberg reported on Wednesday that the SEC had reached an advanced stage, potentially leading to a settlement with Kraken in the next few days.
The news comes after SEC chairman Gary Gensler stated that companies conducting cryptocurrency transactions must register with the regulator.
In a September statement to Reuters, Kraken’s newly-appointed chief executive, Dave Ripley, said the exchange did not plan to register with the organisation or delist cryptocurrencies designated by the SEC as securities.
The news comes after the US Treasury Department’s Office of Foreign Assets struck a deal with the San Francisco-based exchange. Kraken paid $362,000 in a civil liability settlement over alleged Iranian sanctions violations. It also was forced to invest a further $100,000 USD in compliance controls.
Previously, Kraken rejected requests from regulators to block digital wallets for Russians amid the ongoing Russo-Ukrainian war. Former co-founder Jesse PJowell stepped down shortly after, with Ripley stepping into the role shortly after.
