Zakinov vs. Ripple Case Heats Up As Kraken Opens Monetary Card for Users

Published by

Qadir AK

February 9, 2024

Cryptocurrency exchange giant Kraken is standing firm on user privacy amidst legal challenges demanding the disclosure of private XRP transaction data, including customer identities. In a move prioritizing user confidentiality over regulatory compliance, Kraken has filed a motion to protect its clients’ sensitive information, emphasizing its dedication to maintaining user trust.

Following the news, Kraken has started notifying customers who could benefit from the Zakinov v. Ripple lawsuit.

Zakinov v. Ripple: What’s the Issue?

In response to the unfolding legal drama, Kraken is now reaching out to customers potentially affected by the Zakinov v. Ripple lawsuit. This legal battle revolves around the classification of XRP as either a security or a currency. Zakinov, the plaintiff, alleges that Ripple marketed XRP as an unregistered security, while Ripple argues that XRP should be treated like established cryptocurrencies such as Bitcoin and Ethereum. U.S. District Judge Phyllis J. Hamilton has certified it as a class action, adding intensity to the legal showdown.

On July 13, Ripple secured a significant victory against the U.S. Securities and Exchange Commission (SEC), marking a historic moment. The court ruled that XRP is not a security, rejecting the SEC’s claim that crypto tokens inherently fall under securities regulations. This decision sets a precedent for how digital tokens are classified and regulated in the United States.

Also Read: Will the Ripple vs. SEC Lawsuit End in 2024? Here’s What Ripple CTO Has To Say

Kraken’s Proactive Approach

Notably, Kraken has reached out to its customers, particularly those who may stand to benefit from potential monetary incentives resulting from the lawsuit. Yassin Mobarak, founder of Dizer Capital, shared the news on social media, revealing that Kraken had informed him about being on the list of potential beneficiaries eligible for the lawsuit’s monetary incentives.

Mobarak expressed his surprise at the prospect of making money from his XRP holdings through a class action against Ripple, a scenario he had not anticipated despite his belief in the profitability of his XRP investments.

Looking Ahead: Ripple’s Defense and Trial Schedule

Ripple is expected to strengthen its defense in the Zakinov lawsuit, citing 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 legal saga.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.