United States $20 Billion Cryptocurrency Exchange Kraken (Payward Inc) Buys Hong Kong-Based Payment Infrastructure Company Reap Technologies for $600 Million in Cash & Share Deal, Founded in 2018 by Daren Guo & Kevin Kang
11th May 2026 | Hong Kong
United States cryptocurrency exchange Kraken parent Payward Inc ($20 billion valuation) has announced to buy Hong Kong-based payment infrastructure company Reap Technologies for $600 million in cash & share deal. Reap Technologies was founded in 2018 by Daren Guo & Kevin Kang. In 2026 April, Germany stock exchange operator Deutsche Borse ($56 billion market value) announced to buy 1.5% stake in cryptocurrency exchange Kraken (Payward Inc) for $200 million at $13.3 billion valuation in secondary share transaction. Announcement (7/5/26): “ Payward, Inc., a unified financial infrastructure platform advancing an open, global financial system, today announced it has entered into a definitive agreement to acquire Reap Technologies Holdings Limited (“Reap”), a leading stablecoin-native, card issuing and payments infrastructure company enabling global money movement, for up to $600 million payable in a mix of cash and Payward stock, in a transaction that values Payward’s equity at $20 billion. The acquisition expands Payward Services, the company’s B2B infrastructure platform, unlocking globally regulated infrastructure for card issuance and stablecoin payments. Payward Services gives partners a single integration point for the infrastructure they need to build always-on financial products — covering crypto trading, custody, tokenized assets, on/off-ramps, and derivatives. Reap extends that platform into the global cards and payments space. Partners will be able to embed card issuance, cross-border payments, and stablecoin treasury services alongside Payward’s existing capabilities, without assembling multiple vendors or managing fragmented infrastructure. The acquisition of Reap follows Payward’s acquisitions of NinjaTrader, Bitnomial, and Backed, and continues its strategy of expanding the platform through capability-focused transactions. Reap has built a card issuing and cross-border payments stack that connects traditional financial systems with digital assets, enabling businesses to move money globally with greater speed, transparency, and efficiency. Its platform integrates card networks, traditional finance rails, and stablecoin-native settlement into a single API-driven infrastructure, supporting corporate card issuing, card programs, cross-border payouts, and treasury management. The acquisition comes as stablecoin adoption accelerates globally, with businesses increasingly using stablecoins for payments, treasury management, and cross-border settlement. The acquisition creates a complementary global regulatory footprint to drive the expansion of both businesses. Reap’s existing licenses accelerate Payward’s expansion across APAC and the Americas, while Payward’s EU and US licenses open new corridors for Reap in Europe and US markets. Together, the two businesses are positioned to extend stablecoin-powered payments infrastructure into high-growth markets across MENA and Latin America. Reap’s card issuing and cross-border payment capabilities will be made available to Payward Services partners, alongside access to Payward’s global liquidity, custody, and settlement infrastructure. Reap will continue to operate as a standalone platform within the Payward ecosystem, maintaining its leadership team led by Daren Guo, along with its brand and go-to-market approach, while benefiting from Payward’s global infrastructure and regulatory footprint.” In 2026 March, Kraken banking unit (Kraken Financial / Payward) has received a 1-year limited-access approval for master account to be linked directly to United States core payment systems, which will allow Kraken Financial to bypass intermediary banks for payments resulting in faster, simpler & lower costs payments. In 2025 December, Germany stock exchange operator Deutsche Borse & cryptocurrency exchange Kraken (Payward) formed a strategic partnership to bridge traditional financial markets & digital asset economy (trading, custody, settlement, collateral management & tokenized asset). In 2025 November, Kraken filed for United States IPO after raising $800 million funding at $20 billion valuation. Kraken was founded in 2011 by Jesse Powell & Thanh Luu. Kraken investors include Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, Tribe Capital & Citadel Securities. In 2025 September, Kraken was reported to be raising new funding at $20 billion valuation after reported to have raised $500 million at $15 billion valuation, and planning for an IPO in 2026. In 2025 July, Kraken was raising $500 million in new funding round at $15 billion valuation, and planning for IPO in 2026. In 2025 March, Kraken announced to buy United States retail trading platform NinjaTrader for $1.5 billion. In 2025 March, Kraken was reported to be planning for a IPO in 2026. In 2021, Kraken was reported to have a $10 billion valuation. In 2025 March, the United States SEC (Securities & Exchange Commission) was reported to be dropping charges against cryptocurrency exchange Kraken for operating as an unregistered securities exchange, broker, dealer & clearing agency, generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 November, the United States SEC (Securities & Exchange Commission) charged crypto trading platform Kraken (Payward & Payward Ventures) for operating as an unregistered securities exchange, broker, dealer & clearing agency, and generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 February, Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million.
“ United States $20 Billion Cryptocurrency Exchange Kraken (Payward Inc) Buys Hong Kong-Based Payment Infrastructure Company Reap Technologies for $600 Million in Cash & Share Deal, Founded in 2018 by Daren Guo & Kevin Kang “
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Arjun Sethi, Co-CEO of Payward: ”Finance is moving in one direction. Continuous markets. Programmable money. Autonomous execution. Stablecoins are the settlement substrate. AI agents are the new participants. We see the inflection on our own platform: Krak shipped to 110 countries on Day 1, xStocks crossed $29 billion in cumulative volume in its first year, 1,900 B2B partners run on Payward’s shared infrastructure today. Reap is the payments layer for what comes next. Card networks, banking rails, and blockchains on a single API, settling in stablecoins, licensed from Hong Kong to Mexico. The infrastructure for that world has to be open, regulated, and operational at global scale on Day 1. The next financial product will not be assembled. It will be deployed.”
Daren Guo, Co-Founder and CEO of Reap: ”Stablecoins in card payments are one of the largest real world applications today and Reap is proud to be leading the way. With the global stablecoin and crypto card market now exceeding $18 billion annually, Reap nearly tripled revenue and volumes in 2025, and expanded our licensing footprint from Asia to South America. What’s next is for us to connect stablecoin cards and payments to a full suite of crypto-native financial services to power scale, regulatory reach, and distribution for our clients. Joining Payward was a natural step to accelerate the future of finance and build category-disrupting offerings in web3, agentic commerce and more.”
Reap Technologies – Reap is a global financial technology company that enables financial connectivity and access for businesses worldwide through stablecoin-native infrastructure. We transform the financial landscape through more efficient money movement by merging traditional finance with digital assets, bridging disparate economies and connecting key financial markets. Reap was an early leader in Asia to incorporate stablecoins into our solutions. In 2025, Reap processed billions in stablecoin-funded transaction flows. From stablecoin-enabled corporate cards to cross-border payments, we streamline financial operations and empower companies to scale with our integrated business accounts and embedded finance solutions. Founded and headquartered in Hong Kong, Reap employs over 200 people worldwide.
Payward – Payward, Inc. is a unified financial infrastructure platform that powers a family of products advancing an open, global financial system. Built on a single shared architecture, Payward enables customers to hold, trade, earn, pay, and invest across asset classes without friction or fragmentation. At its core, Payward provides the infrastructure layer behind Kraken and a growing set of purpose-built products, including NinjaTrader, Breakout, xStocks, Bitnomial, and CF Benchmarks.
Cryptocurrency Exchange Kraken Banking Unit (Kraken Financial / Payward) Receives 1-Year Limited-Access Approval for Master Account to be Linked Directly to United States Core Payment Systems Which Will Allow Kraken Financial to Bypass Intermediary Banks for Payments Resulting in Faster, Simpler & Lower Costs Payments
5th March 2026 – Cryptocurrency exchange Kraken banking unit (Kraken Financial / Payward) has received a 1-year limited-access approval for master account to be linked directly to United States core payment systems, which will allow Kraken Financial to bypass intermediary banks for payments resulting in faster, simpler & lower costs payments. In 2025 December, Germany stock exchange operator Deutsche Borse & cryptocurrency exchange Kraken (Payward) formed a strategic partnership to bridge traditional financial markets & digital asset economy (trading, custody, settlement, collateral management & tokenized asset). In 2025 November, Kraken filed for United States IPO after raising $800 million funding at $20 billion valuation. Kraken was founded in 2011 by Jesse Powell & Thanh Luu. Kraken investors include Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, Tribe Capital & Citadel Securities. In 2025 September, Kraken was reported to be raising new funding at $20 billion valuation after reported to have raised $500 million at $15 billion valuation, and planning for an IPO in 2026. In 2025 July, Kraken was raising $500 million in new funding round at $15 billion valuation, and planning for IPO in 2026. In 2025 March, Kraken announced to buy United States retail trading platform NinjaTrader for $1.5 billion. Earlier in 2025 March, Kraken was reported to be planning for a IPO in 2026. In 2021, Kraken was reported to have a $10 billion valuation. In 2025 March, the United States SEC (Securities & Exchange Commission) was reported to be dropping charges against cryptocurrency exchange Kraken for operating as an unregistered securities exchange, broker, dealer & clearing agency, generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 November, the United States SEC (Securities & Exchange Commission) charged crypto trading platform Kraken (Payward & Payward Ventures) for operating as an unregistered securities exchange, broker, dealer & clearing agency, and generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 February, Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million. United States SEC: “According to the SEC’s complaint, since at least September 2018, Kraken has made hundreds of millions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The SEC alleges that Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law. Kraken’s alleged failure to register these functions has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others … … The SEC’s complaint also alleges that Kraken’s business practices, deficient internal controls, and poor recordkeeping practices present a range of risks for its customers. As alleged in the complaint, Kraken commingles its customers’ money with its own, including paying operational expenses directly from accounts that hold customer cash. Kraken also allegedly commingles its customers’ crypto assets with its own, creating what its own auditor had identified as “a significant risk of loss” to its customers. In February of this year (2023), Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million.” See below for more info:
Cryptocurrency Exchange Kraken Files for United States IPO after Raising $800 Million Funding at $20 Billion, Founded in 2011 by Jesse Powell & Thanh Luu, Investors Include Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, Tribe Capital & Citadel Securities
21st November – Cryptocurrency exchange Kraken has filed for United States IPO after raising $800 million funding at $20 billion valuation. Kraken was founded in 2011 by Jesse Powell & Thanh Luu. Kraken investors include Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, Tribe Capital & Citadel Securities. In 2025 September, Kraken was reported to be raising new funding at $20 billion valuation after reported to have raised $500 million at $15 billion valuation, and planning for an IPO in 2026. In 2025 July, Kraken was raising $500 million in new funding round at $15 billion valuation, and planning for IPO in 2026. In 2025 March, Kraken announced to buy United States retail trading platform NinjaTrader for $1.5 billion. Earlier in 2025 March, Kraken was reported to be planning for a IPO in 2026. In 2021, Kraken was reported to have a $10 billion valuation. Kraken – Kraken is one of the world’s longest-standing and most secure crypto platforms. Our mission is to accelerate the global adoption of crypto, so that everyone can achieve financial freedom and inclusion. Globally, Kraken clients trade more than 200 digital assets and 6 different national currencies, including GBP, EUR, USD, CAD, CHF, and AUD. Kraken was founded in 2011 and was one of the first platforms to offer spot trading with margin, parachain auctions, staking, regulated derivatives and index services. Trusted by over 10 million individuals, traders and institutions around the world, Kraken offers professional 24/7/365 client support along with one of the fastest, most performant trading platforms available. Kraken has set the industry standard for transparency and client trust, and was the first crypto platform to conduct Proof of Reserves audits. In 2025 March, the United States SEC (Securities & Exchange Commission) was reported to be dropping charges against cryptocurrency exchange Kraken for operating as an unregistered securities exchange, broker, dealer & clearing agency, generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 November, the United States SEC (Securities & Exchange Commission) charged crypto trading platform Kraken (Payward & Payward Ventures) for operating as an unregistered securities exchange, broker, dealer & clearing agency, and generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 February, Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million. United States SEC: “According to the SEC’s complaint, since at least September 2018, Kraken has made hundreds of millions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The SEC alleges that Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law. Kraken’s alleged failure to register these functions has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others … … The SEC’s complaint also alleges that Kraken’s business practices, deficient internal controls, and poor recordkeeping practices present a range of risks for its customers. As alleged in the complaint, Kraken commingles its customers’ money with its own, including paying operational expenses directly from accounts that hold customer cash. Kraken also allegedly commingles its customers’ crypto assets with its own, creating what its own auditor had identified as “a significant risk of loss” to its customers. In February of this year (2023), Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million.” See below for more info:
Cryptocurrency Exchange Kraken Raising New Funding at $20 Billion Valuation after Raising $500 Million in New Funding Round at $15 Billion Valuation & Plans for IPO in 2026, Founded in 2011 by Jesse Powell & Thanh Luu
28th September – Cryptocurrency exchange Kraken is reported to be raising new funding at $20 billion valuation after reported to have raised $500 million at $15 billion valuation, and planning for an IPO in 2026. In 2025 July, Kraken was raising $500 million in new funding round at $15 billion valuation, and planning for IPO in 2026. Kraken was founded in 2011 by Jesse Powell & Thanh Luu. In 2025 March, Kraken announced to buy United States retail trading platform NinjaTrader for $1.5 billion. Earlier in 2025 March, Kraken was reported to be planning for a IPO in 2026. In 2021, Kraken was reported to have a $10 billion valuation. Kraken – Kraken is one of the world’s longest-standing and most secure crypto platforms. Our mission is to accelerate the global adoption of crypto, so that everyone can achieve financial freedom and inclusion. Globally, Kraken clients trade more than 200 digital assets and 6 different national currencies, including GBP, EUR, USD, CAD, CHF, and AUD. Kraken was founded in 2011 and was one of the first platforms to offer spot trading with margin, parachain auctions, staking, regulated derivatives and index services. Trusted by over 10 million individuals, traders and institutions around the world, Kraken offers professional 24/7/365 client support along with one of the fastest, most performant trading platforms available. Kraken has set the industry standard for transparency and client trust, and was the first crypto platform to conduct Proof of Reserves audits. In 2025 March, the United States SEC (Securities & Exchange Commission) was reported to be dropping charges against cryptocurrency exchange Kraken for operating as an unregistered securities exchange, broker, dealer & clearing agency, generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 November, the United States SEC (Securities & Exchange Commission) charged crypto trading platform Kraken (Payward & Payward Ventures) for operating as an unregistered securities exchange, broker, dealer & clearing agency, and generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 February, Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million. United States SEC: “According to the SEC’s complaint, since at least September 2018, Kraken has made hundreds of millions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The SEC alleges that Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law. Kraken’s alleged failure to register these functions has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others … … The SEC’s complaint also alleges that Kraken’s business practices, deficient internal controls, and poor recordkeeping practices present a range of risks for its customers. As alleged in the complaint, Kraken commingles its customers’ money with its own, including paying operational expenses directly from accounts that hold customer cash. Kraken also allegedly commingles its customers’ crypto assets with its own, creating what its own auditor had identified as “a significant risk of loss” to its customers. In February of this year (2023), Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million.” See below for more info:
Cryptocurrency Exchange Kraken to Raise $500 Million in New Funding Round at $15 Billion Valuation & Plans for IPO in 2026, Founded in 2011 by Jesse Powell & Thanh Luu
31st July – Cryptocurrency exchange Kraken is raising $500 million in new funding round at $15 billion valuation, and planning for IPO in 2026. Kraken was founded in 2011 by Jesse Powell & Thanh Luu. In 2025 March, Kraken announced to buy United States retail trading platform NinjaTrader for $1.5 billion. Earlier in 2025 March, Kraken was reported to be planning for a IPO in 2026. In 2021, Kraken was reported to have a $10 billion valuation. Kraken – Kraken is one of the world’s longest-standing and most secure crypto platforms. Our mission is to accelerate the global adoption of crypto, so that everyone can achieve financial freedom and inclusion. Globally, Kraken clients trade more than 200 digital assets and 6 different national currencies, including GBP, EUR, USD, CAD, CHF, and AUD. Kraken was founded in 2011 and was one of the first platforms to offer spot trading with margin, parachain auctions, staking, regulated derivatives and index services. Trusted by over 10 million individuals, traders and institutions around the world, Kraken offers professional 24/7/365 client support along with one of the fastest, most performant trading platforms available. Kraken has set the industry standard for transparency and client trust, and was the first crypto platform to conduct Proof of Reserves audits. In 2025 March, the United States SEC (Securities & Exchange Commission) was reported to be dropping charges against cryptocurrency exchange Kraken for operating as an unregistered securities exchange, broker, dealer & clearing agency, generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 November, the United States SEC (Securities & Exchange Commission) charged crypto trading platform Kraken (Payward & Payward Ventures) for operating as an unregistered securities exchange, broker, dealer & clearing agency, and generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 February, Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million. United States SEC: “According to the SEC’s complaint, since at least September 2018, Kraken has made hundreds of millions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The SEC alleges that Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law. Kraken’s alleged failure to register these functions has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others … … The SEC’s complaint also alleges that Kraken’s business practices, deficient internal controls, and poor recordkeeping practices present a range of risks for its customers. As alleged in the complaint, Kraken commingles its customers’ money with its own, including paying operational expenses directly from accounts that hold customer cash. Kraken also allegedly commingles its customers’ crypto assets with its own, creating what its own auditor had identified as “a significant risk of loss” to its customers. In February of this year (2023), Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million.” See below for more info:
Cryptocurrency Exchange Kraken to Buy United States Retail Trading Platform NinjaTrader for $1.5 Billion, Kraken Plans IPO in 2026, $10 Billion Valuation in 2021, Founded in 2011 by Jesse Powell & Thanh Luu
23rd March 2025 – Cryptocurrency exchange Kraken has announced to buy United States retail trading platform NinjaTrader for $1.5 billion. Kraken (20/3/25): “This acquisition strengthens our position as a 24/7, always-on technology platform built for professional traders, making us a leader in U.S. futures for both traditional and crypto markets. It also accelerates Kraken’s multi-asset-class ambitions, which include plans for equities trading and payments. Founded in 2003, NinjaTrader provides advanced futures trading tools to nearly two million traders and operates as a CFTC-registered Futures Commission Merchant (FCM). This transaction marks the largest-ever deal combining traditional finance (TradFi) and crypto. Earlier in 2025 March, Kraken has been reported to be planning for a IPO in 2026. In 2021, Kraken was reported to have a $10 billion valuation. Kraken was founded in 2011 by Jesse Powell & Thanh Luu. Kraken is one of the world’s longest-standing and most secure crypto platforms. Our mission is to accelerate the global adoption of crypto, so that everyone can achieve financial freedom and inclusion. Globally, Kraken clients trade more than 200 digital assets and 6 different national currencies, including GBP, EUR, USD, CAD, CHF, and AUD. Kraken was founded in 2011 and was one of the first platforms to offer spot trading with margin, parachain auctions, staking, regulated derivatives and index services. Trusted by over 10 million individuals, traders and institutions around the world, Kraken offers professional 24/7/365 client support along with one of the fastest, most performant trading platforms available. Kraken has set the industry standard for transparency and client trust, and was the first crypto platform to conduct Proof of Reserves audits. In 2025 March, the United States SEC (Securities & Exchange Commission) has been reported to be dropping charges against cryptocurrency exchange Kraken for operating as an unregistered securities exchange, broker, dealer & clearing agency, generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 November, the United States SEC (Securities & Exchange Commission) has charged crypto trading platform Kraken (Payward & Payward Ventures) for operating as an unregistered securities exchange, broker, dealer & clearing agency, and generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 February, Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million. United States SEC: “According to the SEC’s complaint, since at least September 2018, Kraken has made hundreds of millions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The SEC alleges that Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law. Kraken’s alleged failure to register these functions has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others … … The SEC’s complaint also alleges that Kraken’s business practices, deficient internal controls, and poor recordkeeping practices present a range of risks for its customers. As alleged in the complaint, Kraken commingles its customers’ money with its own, including paying operational expenses directly from accounts that hold customer cash. Kraken also allegedly commingles its customers’ crypto assets with its own, creating what its own auditor had identified as “a significant risk of loss” to its customers. In February of this year (2023), Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million.” See below for more info:
Cryptocurrency Exchange Kraken Plans IPO in 2026, $10 Billion Valuation in 2021, Founded in 2011 by Jesse Powell & Thanh Luu
9th March 2025 – Cryptocurrency exchange Kraken has been reported to be planning for a IPO in 2026. In 2021, Kraken was reported to have a $10 billion valuation. Kraken was founded in 2011 by Jesse Powell & Thanh Luu. Kraken is one of the world’s longest-standing and most secure crypto platforms. Our mission is to accelerate the global adoption of crypto, so that everyone can achieve financial freedom and inclusion. Globally, Kraken clients trade more than 200 digital assets and 6 different national currencies, including GBP, EUR, USD, CAD, CHF, and AUD. Kraken was founded in 2011 and was one of the first platforms to offer spot trading with margin, parachain auctions, staking, regulated derivatives and index services. Trusted by over 10 million individuals, traders and institutions around the world, Kraken offers professional 24/7/365 client support along with one of the fastest, most performant trading platforms available. Kraken has set the industry standard for transparency and client trust, and was the first crypto platform to conduct Proof of Reserves audits. In 2025 March, the United States SEC (Securities & Exchange Commission) has been reported to be dropping charges against cryptocurrency exchange Kraken for operating as an unregistered securities exchange, broker, dealer & clearing agency, generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 November, the United States SEC (Securities & Exchange Commission) has charged crypto trading platform Kraken (Payward & Payward Ventures) for operating as an unregistered securities exchange, broker, dealer & clearing agency, and generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 February, Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million. United States SEC: “According to the SEC’s complaint, since at least September 2018, Kraken has made hundreds of millions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The SEC alleges that Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law. Kraken’s alleged failure to register these functions has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others … … The SEC’s complaint also alleges that Kraken’s business practices, deficient internal controls, and poor recordkeeping practices present a range of risks for its customers. As alleged in the complaint, Kraken commingles its customers’ money with its own, including paying operational expenses directly from accounts that hold customer cash. Kraken also allegedly commingles its customers’ crypto assets with its own, creating what its own auditor had identified as “a significant risk of loss” to its customers. In February of this year (2023), Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million.” See below for more info:
United States SEC Drops Charges Against Cryptocurrency Exchange Kraken for Operating as an Unregistered Securities Exchange, Broker, Dealer & Clearing Agency, Generated Hundreds of Millions in Illegal Revenue & Commingled Clients Assets, Had Agreed to Pay $30 Million Fine Earlier in 2023 February
4th March 2025 – The United States SEC (Securities & Exchange Commission) has been reported to be dropping charges against cryptocurrency exchange Kraken for operating as an unregistered securities exchange, broker, dealer & clearing agency, generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 November, the United States SEC (Securities & Exchange Commission) has charged crypto trading platform Kraken (Payward & Payward Ventures) for operating as an unregistered securities exchange, broker, dealer & clearing agency, and generating hundreds of millions in illegal revenue and commingling clients assets. In 2023 February, Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million. United States SEC: “According to the SEC’s complaint, since at least September 2018, Kraken has made hundreds of millions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The SEC alleges that Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law. Kraken’s alleged failure to register these functions has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others … … The SEC’s complaint also alleges that Kraken’s business practices, deficient internal controls, and poor recordkeeping practices present a range of risks for its customers. As alleged in the complaint, Kraken commingles its customers’ money with its own, including paying operational expenses directly from accounts that hold customer cash. Kraken also allegedly commingles its customers’ crypto assets with its own, creating what its own auditor had identified as “a significant risk of loss” to its customers. In February of this year (2023), Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million.” See below for more info:
United States SEC Charged Crypto Trading Platform Kraken Payward for Operating as an Unregistered Securities Exchange, Broker, Dealer & Clearing Agency, Generated Hundreds of Millions in Illegal Revenue & Commingled Clients Assets, Had Agreed to Pay $30 Million Fine Earlier in 2023 February
22nd November 2023 – The United States SEC (Securities & Exchange Commission) has charged crypto trading platform Kraken (Payward & Payward Ventures) for operating as an unregistered securities exchange, broker, dealer & clearing agency, and generating hundreds of millions in illegal revenue and commingling clients assets. In February of this year (2023), Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million. United States SEC: “According to the SEC’s complaint, since at least September 2018, Kraken has made hundreds of millions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The SEC alleges that Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law. Kraken’s alleged failure to register these functions has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others … … The SEC’s complaint also alleges that Kraken’s business practices, deficient internal controls, and poor recordkeeping practices present a range of risks for its customers. As alleged in the complaint, Kraken commingles its customers’ money with its own, including paying operational expenses directly from accounts that hold customer cash. Kraken also allegedly commingles its customers’ crypto assets with its own, creating what its own auditor had identified as “a significant risk of loss” to its customers. In February of this year (2023), Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million.” See below for more info:
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement: “We allege that Kraken made a business decision to reap hundreds of millions of dollars from investors rather than coming into compliance with the securities laws. That decision resulted in a business model rife with conflicts of interest that placed investors’ funds at risk. Kraken’s choice of unlawful profits over investor protection is one we see far too often in this space, and today we’re both holding Kraken accountable for its misconduct and sending a message to others to come into compliance.”
United States SEC Charged Crypto Trading Platform Kraken Payward for Operating as an Unregistered Securities Exchange, Broker, Dealer & Clearing Agency
20th November 2023 – The Securities and Exchange Commission today charged Payward Inc. and Payward Ventures Inc., together known as Kraken, with operating Kraken’s crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency. According to the SEC’s complaint, since at least September 2018, Kraken has made hundreds of millions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The SEC alleges that Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law. Kraken’s alleged failure to register these functions has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others. Through its platform’s services, Kraken allegedly:
- Provides a marketplace that brings together the orders for securities of multiple buyers and sellers using established, non-discretionary methods under which such orders interact, and thus operates as an exchange;
- Engages in the business of effecting securities transactions for the accounts of Kraken customers, and thus operates as a broker;
- Engages in the business of buying and selling securities for its own account without an applicable exception, and thus operates as a dealer; and
- Serves as an intermediary in settling transactions in crypto asset securities by Kraken customers, and acts as a securities depository, and thus operates as a clearing agency.
The SEC’s complaint also alleges that Kraken’s business practices, deficient internal controls, and poor recordkeeping practices present a range of risks for its customers. As alleged in the complaint, Kraken commingles its customers’ money with its own, including paying operational expenses directly from accounts that hold customer cash. Kraken also allegedly commingles its customers’ crypto assets with its own, creating what its own auditor had identified as “a significant risk of loss” to its customers. The SEC’s complaint, filed in federal district court in San Francisco, alleges that Kraken violated the registration provisions of the Securities Exchange Act of 1934 and seeks injunctive relief, conduct-based injunctions, disgorgement of ill-gotten gains plus interest, and penalties.
In February of this year, Kraken agreed to cease offering or selling securities through crypto asset staking services or staking programs and pay a civil penalty of $30 million.
The SEC’s investigation was conducted by Elizabeth Goody and Jennie B. Krasner of the Division of Enforcement’s Crypto Assets and Cyber Unit and Peter Moores of the Boston Regional Office with the assistance of Sachin Verma and Pasha Salimi. It was supervised by Paul Kim, Jorge Tenreiro, and David Hirsch of the Crypto Assets and Cyber Unit. The SEC’s litigation will be led by Alec Johnson, Daniel Blau, and Mr. Moores under the supervision of Douglas Miller, Olivia Choe, and Mr. Tenreiro.
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