Kraken files motion asking court to dismiss SEC lawsuit

Crypto exchange Kraken issued a statement stating that the US SEC filed a lawsuit against Kraken in 2023. Now (February 22) Kraken filed a motion asking the court to dismiss the SEC's lawsuit against Kraken. Kraken said the SEC's indictment does not allege any fraud or harm to consumers. It only raised a registration-based argument that Kraken was operating as an unlicensed securities exchange, broker, dealer and clearing agency because the crypto tokens were called “investment contracts.” Even if all of the SEC's allegations in the complaint were considered true, many of them were not, and its arguments were legally flawed. The SEC never identified any “contract” between Kraken buyers and token issuers, so it cannot be called an “investment contract.” None of the assets in the SEC complaint meet the legal definition of an investment contract.