Kraken Emerges Victorious in XRP Lawsuit, Safeguarding User Privacy

The post Kraken Emerges Victorious in XRP Lawsuit, Safeguarding User Privacy appeared first on Coinpedia Fintech News

Kraken, a prominent U.S.-based cryptocurrency exchange, has successfully has skillfully won a dispute related to the release of user transaction data in an XRP lawsuit involving Ripple Labs and plaintiff Vladi Zakinov. In a noteworthy move, the Kraken stepped in to safeguard the privacy of its users during this legal battle.

Kraken’s Stand Against Data Disclosure

The heart of the matter lies in a court order demanding all U.S. crypto exchanges to disclose private trading data, including personal information, of those involved in XRP transactions spanning from July 2017 to June 2023. 

Concerned about safeguarding customer privacy, Kraken took a firm stance against the order. In a proactive move last month, the exchange submitted a formal plea, seeking to protect its users’ data from being shared with the plaintiff’s lawyers.

Court’s Favorable Verdict for Kraken

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. Applauding Kraken’s unwavering commitment, Mr. Huber praised Kraken, saying it’s the only exchange that stood up to protect users’ personal information.

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

Mr. Huber also mentioned that Kraken will personally tell its customers about the lawsuit against Ripple Labs. The court statement shared by Mr. Huber assured customers that Kraken hasn’t shared, and won’t share their information. 

Instead of giving customer details to the court, Kraken chose to talk directly to its clients because they care about keeping their privacy and security safe.

XFP Security or Currency?

The legal battle between Zakinov and Ripple revolves around the classification of XRP as a security or a currency. Zakinov alleges that Ripple, its CEO Brad Garlinghouse, and its subsidiary XRP II offered XRP as an unregistered security. 

Notably, the SEC vs. Ripple ruling concluded that XRP does not qualify as a security. The looming question is whether the Zakinov vs. Ripple case judge will align with the SEC vs. Ripple case ruling.

Kraken’s active involvement in the XRP lawsuit underscores the complex challenges faced by cryptocurrency exchanges in complying with the law while safeguarding customer interests