{"id":550039,"date":"2023-02-09T23:52:50","date_gmt":"2023-02-09T20:52:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/kraken-reaches-30m-settlement-with-sec-over-staking-as-irs-seeks-user-information\/"},"modified":"2023-02-09T23:52:50","modified_gmt":"2023-02-09T20:52:50","slug":"kraken-reaches-30m-settlement-with-sec-over-staking-as-irs-seeks-user-information","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/kraken-reaches-30m-settlement-with-sec-over-staking-as-irs-seeks-user-information\/","title":{"rendered":"# Kraken reaches $30M settlement with SEC over staking as IRS seeks user information"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a25b2dbab830\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a25b2dbab830\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/kraken-reaches-30m-settlement-with-sec-over-staking-as-irs-seeks-user-information\/#%E2%80%9D_Kraken_reaches_30M_settlement_with_SEC_over_staking_as_IRS_seeks_user_information_%E2%80%9C\" >&#8221; Kraken reaches $30M settlement with SEC over staking as IRS seeks user information &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Kraken_reaches_30M_settlement_with_SEC_over_staking_as_IRS_seeks_user_information_%E2%80%9C\"><\/span>&#8221; Kraken reaches $30M settlement with SEC over staking as IRS seeks user information &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvZWY5ZDI2MjItYzQ0Zi00M2Q4LThhYjEtOTI2ZTdjYmY2ZWEzLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4bbf85c5>Cryptocurrency exchange Kraken has reached an agreement with the United States Securities and Exchange Commission to stop offering staking services or programs to U.S. clients.<\/p>\n<p>In a Feb. 9 announcement, the SEC <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/news\/press-release\/2023-25\">said<\/a> it had charged Kraken with \u201cfailing to register the offer and sale of their crypto asset staking-as-a-service program,\u201d which the commission claims qualified as securities under its purview. The crypto firm has agreed to cease operations of its staking program for U.S. customers as well as pay $30 million in disgorgement, prejudgment interest and civil penalties.<\/p>\n<p>\u201cKraken not only offered investors outsized returns untethered to any economic realities, but also retained the right to pay them no returns at all,\u201d said the SEC\u2019s Division of Enforcement director, Gurbir Grewal. \u201cAll the while, it provided them zero insight into, among other things, its financial condition and whether it even had the means of paying the marketed returns in the first place.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Today we charged Kraken with failing to register the offer and sale of their crypto asset staking-as-a-service program, whereby investors transfer crypto assets to Kraken for staking in exchange for advertised annual investment returns of as much as 21 percent.<\/p>\n<p>\u2014 U.S. Securities and Exchange Commission (@SECGov) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SECGov\/status\/1623777921499336710?ref_src=twsrc%5Etfw\">February 9, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>The SEC\u2019s complaint states that Kraken had been offering its crypto staking services to users in the United States since 2019, advertising it as an \u201ceasy-to-use platform and benefits that derive from Kraken\u2019s efforts on behalf of investors.\u201d However, the commission alleged that Kraken users effectively lost control of their tokens by offering them to the staking program, imparting them with additional risk and \u201cvery little protection\u201d.<\/p>\n<p>Kraken <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.kraken.com\/post\/17619\/settlement\/\">said<\/a> in a Feb. 9 blog post that it would continue to offer staking services for non-U.S. users through a separate subsidiary.<\/p>\n<p><strong><em>Related: Getting rid of crypto staking would be a \u2018terrible path\u2019 for the US \u2014 Coinbase CEO<\/em><\/strong><\/p>\n<p><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> of the SEC settlement followed officials from the Internal Revenue Service petitioning the U.S. District Court for the Northern District of California to allow it to issue summons aiming to obtain information on Kraken users. According to the Feb. 3 court filing, Kraken did not respond to a similar summons issued in May 2021. <\/p>\n<p>In the 2021 case, the crypto exchange had been ordered to provide information on users who conducted the equivalent of $20,000 in crypto transactions over the course of a year between 2016 and 2020. U.S. officials said Kraken had \u201cfailed to comply with the summons\u201d nor produced the \u201cbooks, records, papers, and other data\u201d it requested.<\/p>\n<p class=\"post-content__disclaimer\">Update (Feb. 9 at10:06 PM UTC): This article has been updated to include a statement from Kraken.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/kraken-reaches-30m-settlement-with-sec-over-staking\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Kraken reaches $30M settlement with SEC over staking as IRS seeks user information &#8220; Cryptocurrency exchange Kraken has reached an agreement with the United States Securities and Exchange Commission to stop offering staking services or programs to U.S. clients. In a Feb. 9 announcement, the SEC said it had charged Kraken with \u201cfailing to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":550040,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/ef9d2622-c44f-43d8-8ab1-926e7cbf6ea3.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75540,74898,133582,70934,67874],"class_list":["post-550039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-kraken","tag-sec","tag-staking","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/550039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=550039"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/550039\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/550040"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=550039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=550039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=550039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}