Home Crypto Exchanges Kraken settles with SEC over staking program and launches NFT marketplace

Kraken settles with SEC over staking program and launches NFT marketplace

Kraken SEC NFT

Kraken, one of the world’s largest and most popular crypto exchanges, has recently made headlines for two major developments: a settlement with the U.S. Securities and Exchange Commission (SEC) over its staking program and the launch of its own non-fungible token (NFT) marketplace.

On Feb. 9, 2023, Kraken agreed to pay a $30 million settlement with the SEC for failing to register the offer and sale of its crypto asset staking-as-a-service program, which promised investors annual returns of up to 21 percent. The SEC alleged that Kraken’s staking program, which allowed investors to transfer crypto assets to Kraken for staking in exchange for rewards, constituted an unregistered securities offering that violated federal securities laws.

According to the SEC’s order, Kraken offered and sold its staking program to more than 40,000 U.S. investors from July 2019 to February 2023, raising over $1.6 billion in crypto assets. The SEC claimed that Kraken did not provide investors with adequate disclosures about the risks, costs, and conflicts of interest associated with its staking program, and that Kraken did not have a reasonable basis for the advertised returns.

As part of the settlement, Kraken agreed to cease and desist from committing or causing any future violations of the securities registration provisions, and to refund all U.S. investors who participated in its staking program. Kraken also agreed to hire an independent consultant to review its policies and procedures to ensure compliance with securities laws.

Kraken did not admit or deny the SEC’s findings, but stated that it cooperated fully with the SEC’s investigation and that it was pleased to resolve the matter. Kraken also said that it discontinued its staking program for U.S. customers as of Feb. 9, 2023, and that it will continue to offer other products and services to its global customer base.

On the same day that Kraken announced its settlement with the SEC, it also revealed that it had launched its own NFT marketplace, which is now live and accessible to all Kraken users. The marketplace features over 250 unique NFT collections, ranging from art, music, gaming, sports, and more. Users can buy, sell, and trade NFTs using various crypto assets, such as Bitcoin, Ethereum, and USDC.

Kraken said that its NFT marketplace aims to provide a user-friendly and secure platform for NFT enthusiasts, as well as to support the growth and innovation of the NFT ecosystem. Kraken also said that it plans to add more features and functionalities to its marketplace in the future, such as auctions, bundles, and verified creators.

Kraken’s NFT marketplace is the latest addition to its expanding suite of crypto services, which include spot and futures trading, margin trading, staking, lending, and OTC. Kraken, which was founded in 2011 and is headquartered in San Francisco, has over 2,300 employees and serves over 7 million customers in more than 190 countries. Kraken is also known for its high security standards, low fees, and fast execution.

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Mike T, an accomplished crypto journalist, has been captivating audiences with her in-depth analysis and insightful reporting on the ever-evolving blockchain and cryptocurrency landscape. With a keen eye for market trends and a talent for breaking down complex concepts, Mike's work has become essential reading for both crypto enthusiasts and newcomers alike. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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