Kraken Introduces a Monetary Card for Users, Fueling the Intensifying Zakinov vs. Ripple Case
Kraken, a cryptocurrency exchange based in the United States, has taken a strong stance in support of user privacy amid ongoing legal proceedings that seek to disclose private transaction data of XRP, including customer identities. Prioritizing user confidentiality over regulatory compliance, Kraken has filed a motion to safeguard its clients’ sensitive information, underscoring the exchange’s commitment to maintaining user trust.
In light of these developments, Kraken has started notifying customers who may benefit from the Zakinov v. Ripple lawsuit.
The Zakinov v. Ripple lawsuit centers around the classification of XRP as either a security or a currency. The plaintiff, Zakinov, alleges that Ripple marketed XRP as an unregistered security. On the other hand, Ripple argues that XRP should be treated similarly to cryptocurrencies like Bitcoin and Ethereum. Despite Ripple’s efforts to contest the lawsuit, it has been certified as a class action by U.S. District Judge Phyllis J. Hamilton, adding to the growing list of legal challenges.
On July 13, Ripple emerged victorious in a lawsuit against the SEC, making it the first case of its kind in U.S. history. The court ruling determined that XRP is not a security, rejecting the SEC’s argument that crypto tokens inherently fall under securities regulations. This landmark decision sets a precedent for the classification and regulation of digital tokens in the United States.
Judge Torres has now established a schedule for remedies discovery and briefing in the ongoing legal proceedings.
Kraken’s involvement in reaching out to its customers, particularly those who may be eligible for potential monetary incentives resulting from the lawsuit, has sparked excitement in the market. Yassin Mobarak, the founder of Dizer Capital, shared the news on social media, disclosing that Kraken had informed him of his inclusion in the list of potential beneficiaries eligible for monetary incentives from the lawsuit. Mobarak expressed surprise at the opportunity to profit from his XRP holdings through the class action against Ripple, an outcome he had not anticipated despite his belief in the profitability of his investments.
In response, Ripple is expected to strengthen its defense in the Zakinov lawsuit by referencing Judge Torres’ ruling in the SEC case, which affirmed that XRP is not a security. The trial for the Zakinov lawsuit is scheduled for October 2024, and it will be intriguing to see the direction this case takes as financial documents are unveiled. Stay tuned for further updates.
Tags: Ripple (XRP)