The crypto community has been abuzz with the Securities and Exchange Commission’s (SEC) increasing scrutiny of crypto companies. However, Parrot Capital, a popular voice in the crypto space, recently shook the community with revelations regarding the growing illegal trades and fraud in the crypto space.
🚨 KRAKEN WARNING 🚨#TETHER $USDT FRAUD CARTEL CRYPTO CASINO #KRAKEN HAS JUST BEEN SUED BY THE SEC, ON TOP OF THE TENS OF MILLIONS OF FINES THEY'VE PAID FOR STAKING VIOLATIONS.— Parrot Capital 🦜 (@ParrotCapital) November 20, 2023
IF YOU DON'T VALUE YOUR MONEY, LEAVE IT ON THE PLATFORM. IF YOU ARE DONE GAMBLING, WITHDRAW NOW. pic.twitter.com/OIY5bzncJT
Shedding light on the SEC’s recent accusations against the crypto trading platform Kraken, Parrot Capital unfolded the year-long unauthorized activities of crypto exchanges like FTX. The tweet shared by Parrot Capital served as a censure towards the crypto exchanges, including Kraken and FTX, that commingle customer funds and corporate funds.
In addition, the tweet also lambasted users who still invest in such platforms, asking, “What part of don’t trust people who commingle customer funds/commit accounting violations is hard to understand?” Parrot Capital further expressed his concerns regarding the growing crypto investments despite increasing manipulations and frauds, adding,
“Did the crypto space learn nothing from FTX? No wonder you guys keep losing money to these outfits. Could they produce a clean audit today? I doubt it.”
On the other hand, the crypto community and enthusiasts criticize and question the SEC for their stance against these crypto trading platforms. In a recent tweet, Forbes’ crypto research director Steven Ehrlich wrote about the possibility of the SEC standing against FTX’s mission of liquidating their assets through Coinbase and Kraken.
Last week I ran a story asking if the #SEC would try to stop #FTX from liquidating #crypto through #Coinbase and #Kraken.— Steven Ehrlich (@Steven_Ehrlich) November 20, 2023
The agency declined comment.
Bankrupt FTX Wants To Sell $100 Million Of Crypto Per Week, Will The SEC Stop It?https://t.co/XwAOWa3RH3
Several months after FTX’s debacle, the platform had been granted court approval to liquidate its assets as a way to reimburse customer funds to the affected users. According to the Forbes report, FTX has recovered $7 billion of the total missing $8.7 billion, and the company currently holds sufficient funds to repay its customers.
However, the report implied the possibility of the SEC’s intervention in FTX’s liquidation, arguing, “The Securities and Exchange Commission is not fond of cryptocurrency trading as it is currently practiced in the United States.” Further elaborating on the point, Ehrlich cited the evidence of the SEC suing Binance and Coinbase for allegedly trading unregistered securities.
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