California Judge Puts the Kibosh on Kraken’s Interlocutory Appeal Attempt
A California judge has denied Kraken's motion for interlocutory appeal, stating that allowing the appeal would delay the resolution of the SEC's case against the crypto exchange. Kraken sought the appeal after a ruling indicated that the SEC had plausibly alleged that cryptocurrencies sold on its platform might be classified as securities under the Howey Test. Kraken's lawyers argued that the judge's decision involved significant legal questions and that an immediate appeal could expedite the litigation. However, Judge William Orrick emphasized that granting the appeal is discretionary and would not materially advance the case's resolution. The SEC's lawsuit against Kraken alleges it operated as an unregistered securities exchange, seeking disgorgement, civil penalties, and permanent injunctions. Kraken has denied wrongdoing and previously attempted to dismiss the case, which was denied.
