Kraken Launches Monetary Card for Users Amid Escalation of Zakinov vs. Ripple Lawsuit

Kraken, the renowned cryptocurrency exchange, is taking a strong stance on user privacy amidst legal challenges seeking the disclosure of private XRP transaction data and customer identities. In a bid to prioritize user confidentiality over regulatory compliance, Kraken has filed a motion to safeguard its clients’ sensitive information, highlighting its commitment to maintaining user trust.

Kraken has now begun reaching out to customers who could potentially benefit from the ongoing Zakinov v. Ripple lawsuit. This legal battle revolves around the classification of XRP, whether it should be considered a security or a currency. The plaintiff, Zakinov, alleges that Ripple marketed XRP as an unregistered security, while Ripple argues that XRP should be treated similarly to established cryptocurrencies like Bitcoin and Ethereum. U.S. District Judge Phyllis J. Hamilton has certified the case as a class action, intensifying the legal showdown.

In a groundbreaking victory for Ripple, on July 13, the court ruled that XRP is not a security, rejecting the U.S. Securities and Exchange Commission’s claim that crypto tokens inherently fall under securities regulations. This precedent-setting decision has significant implications for the classification and regulation of digital tokens in the United States.

Kraken has taken a proactive approach by reaching out to its customers, particularly those who may potentially benefit from monetary incentives resulting from the Zakinov lawsuit. Yassin Mobarak, the founder of Dizer Capital, shared on social media that Kraken had informed him about being on the list of potential beneficiaries eligible for the lawsuit’s monetary incentives. Mobarak expressed surprise at the opportunity to profit from his XRP holdings through a class action against Ripple, as he had not anticipated such a scenario despite his belief in the profitability of his XRP investments.

Looking ahead, Ripple is expected to bolster its defense in the Zakinov lawsuit, leveraging Judge Torres’ ruling in the SEC case that affirmed XRP is not a security. The trial is scheduled for October 2024, promising further twists and turns in this ongoing legal saga.