Big Win for Kraken in XRP Lawsuit

• Kraken defends user privacy amid ongoing XRP lawsuit with Ripple Labs and Vladi Zakinov.
• The US court agreed with Kraken and rejected the request to transfer customer data directly in the lawsuit.

A prominent U.S.-based cryptocurrency exchange has successfully defended its users’ transaction data privacy amidst the ongoing XRP lawsuit involving Ripple Labs and plaintiff Vladi Zakinov. According to an on-chain investigator known as Mr. Huber, the U.S. court has sided with Kraken’s argument, dismissing the request for the direct transfer of customer data made in the lawsuit. 

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 Exchange will personally notify its clients regarding the class action lawsuit against Ripple Labs. The notification, to be distributed via email, assures customers that their personal data remains secure and inaccessible to third parties, as per the statement.

Kraken Upholding User Privacy in XRP Lawsuit

The class action lawsuit, initiated in December 2020, alleges that Ripple distributed XRP as an unregistered security. On the other hand, Ripple contends that XRP should be categorized as a currency similar to Bitcoin rather than a security. 

In a significant development in July 2023, Ripple secured a pivotal win as a court dismissed the SEC’s assertion that XRP qualifies as a security. This ruling set a crucial precedent for digital token regulation within the United States, although the legal battle persists.

In November 2023, the court demanded that all U.S.-based cryptocurrency exchanges provide confidential trading data concerning their XRP customers. Alongside trading data, the court also mandated the disclosure of customer identities linked to XRP transactions occurring between July 3, 2017, and June 30, 2023.

However, Kraken’s involvement introduces a fresh dimension to the case as the exchange opposes a court order demanding the disclosure of customers’ identities and XRP transaction records. In December 2023, Kraken submitted a plea to protect sensitive client data through its intervention motion.

Now the court’s decision to refuse the direct transfer of customer data signifies a crucial win for user privacy within the cryptocurrency space.