Kraken Wins Court Battle In an XRP Lawsuit

Leading crypto exchange, Kraken wins court battle to safeguard its customers’ identities in the class action between Zakinov and Ripple.

Kraken has secured a major victory in its quest to safeguard its customers’ data in the legal dispute involving Ripple and Vladi Zakinov.

Top crypto sleuth Mr. Huber (@Leerzeit) shared the development in a recent post on X, lauding Kraken’s stance to safeguard its customers’ identities.

KUDOS! @krakenfx was the only exchange to stand up for the protection of their clients' identity and personal data in the Zakinov case. The court granted their request not to transfer their customers' personal data directly to the Ethereum lawyer, but to contact them themselves… pic.twitter.com/8AjsXmLdXV

— Mr. Huber🔥🦅🔥 (@Leerzeit) January 29, 2024

Kraken’s Motion to Intervene in XRP Lawsuit

For context, Kraken filed a motion to intervene in the Zakinov V. Ripple lawsuit last month after a federal court compelled all U.S.-based exchanges to submit private trading data and identities of their customers who traded XRP from July 3, 2017, to June 30, 2023.

In the December motion, Kraken expressed concerns about the risks associated with sharing its customers’ data with the plaintiff’s lawyers.

Despite taking a neutral stance in the matter, Kraken feared that its customers, especially XRP holders, might misinterpret its compliance as supporting a lawsuit against crypto payments company Ripple.

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Additionally, Kraken highlighted the importance of user privacy in the crypto sector, as it emphasized the need to maintain its reputation as well as its users’ trust.

Court Rules in Kraken’s Favor

Consequently, the court ruled in favor of the exchange, stopping it from transferring its customers’ data to the plaintiff’s lawyer.

Mr. Huber shared an excerpt from the court order, which mandates Kraken to notify its customers about the lawsuit personally. Interestingly, the court pointed out that Kraken must notify its customers by email while outlining a sample of the notification.

An excerpt of the sample reads:

“No, none of your information has been shared or will be shared by Kraken. Rather than providing your contact information to the court, we chose to contact you directly because we hold our clients’ privacy and security in the highest regard.” 

Zakinov V. Ripple Lawsuit

It bears mentioning that the Zakinov case is one of the lawsuits Ripple is currently facing. The lawsuit, which was filed by a group of crypto investors led by Vladi Zakinov, accused Ripple, its CEO Brad Garlinghouse, and its subsidiary XRP II of offering XRP as an unregistered security.

Expectedly, Ripple denied the claim, arguing that XRP is similar to other crypto assets deemed as non-security, including Bitcoin.

Ripple’s defense also received a major boost after U.S. District Judge Analisa Torres ruled last year that XRP in and of itself is not a security.

Notably, the Zakinov vs. Ripple trial, which has been postponed multiple times, is expected to commence on April 15, 2024.

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• Source: https://thecryptobasic.com/2024/01/31/kraken-wins-court-battle-in-an-xrp-lawsuit/?utm_source=rss&utm_medium=rss&utm_campaign=kraken-wins-court-battle-in-an-xrp-lawsuit