Appeal of KRAKEN rejected by federal judge

Appeal Denied

Kraken filed an appeal against the SEC‘s decision but was denied by Judge William Orrick. The judge noted that this effort would only prolong the resolution process.

Court’s Argument

Judge Orrick indicated that the SEC had reasonably demonstrated that the transactions on Kraken’s platform are considered investment contracts under the Howey test. According to him, the appeal does not bring significant benefits to resolving the dispute.

Kraken’s Argument

Kraken argued that there is ambiguity about the legal aspect of investment contracts, confident that its decision has a basis. However, many courts did not agree with Kraken’s perspective.

SEC’s Lawsuit

In November 2023, the SEC sued Kraken, accusing them of not registering as an exchange or broker as required by law.