Crypto Exchange Kraken To Pay $1,250,000 Fine for Providing Illegal Leveraged Trading to US Customers.
01 Oct 2021, 08:00
Crypto Exchange Kraken To Pay $1,250,000 Fine for Providing Illegal Leveraged Trading to US Customers
Crypto exchange Kraken must pay a hefty fine for providing illegal trading services in the US.
In a statement published on Tuesday, the Commodity Futures Trading Commission (CFTC) says that it issued an order requiring Kraken to pay $1.25 million in civil monetary penalties after finding that the exchange offered margined retail commodity transactions in Bitcoin (BTC) and other digital assets to ineligible US customers.
The order also requires the exchange to cease and desist from further violations of the Commodity Exchange Act (CEA).
The CFTC says that between June 2020 and July 2021, Kraken offered margin trading services while maintaining sole custody of these assets. Customers were required to exit their positions and repay the exchange within 28 days. Otherwise, Kraken could liquidate their margin positions.