Kraken Prevails in XRP Lawsuit, Ensuring User Privacy Protection
Kraken, a well-known cryptocurrency exchange based in the United States, has successfully resolved a dispute regarding the release of user transaction data in a lawsuit involving Ripple Labs and plaintiff Vladi Zakinov. In a remarkable display of dedication to protecting user privacy, Kraken took action to safeguard its users during this legal battle.
The crux of the matter lies in a court order that required all U.S. crypto exchanges to disclose private trading data, including personal information, of individuals involved in XRP transactions from July 2017 to June 2023. Concerned about protecting customer privacy, Kraken firmly opposed the order. Last month, the exchange made a proactive move by submitting a formal plea to shield its users’ data from being shared with the plaintiff’s lawyers.
Breaking the news, the on-chain investigator “Mr. Huber” reports that the U.S. court has ruled in favor of Kraken’s plea, denying the direct transfer of customer data. Praising Kraken’s unwavering commitment, Mr. Huber commended the exchange for being the only one to take a stand in protecting users’ personal information.
Mr. Huber also mentioned that Kraken will personally inform its customers about the lawsuit against Ripple Labs. The court statement shared by Mr. Huber assured customers that Kraken has not shared, and will not share, their information. Instead of providing customer details to the court, Kraken chose to communicate directly with its clients because of its dedication to maintaining their privacy and security.
The legal battle between Zakinov and Ripple revolves around the classification of XRP as either a security or a currency. Zakinov alleges that Ripple, its CEO Brad Garlinghouse, and its subsidiary XRP II offered XRP as an unregistered security. It is worth noting that the SEC vs. Ripple ruling concluded that XRP does not qualify as a security. The looming question is whether the judge in the Zakinov vs. Ripple case will align with the ruling in the SEC vs. Ripple case.
Kraken’s active involvement in the XRP lawsuit highlights the intricate challenges faced by cryptocurrency exchanges in complying with the law while safeguarding customer interests.