In a win for cryptocurrency privacy, major exchange Kraken emerged victorious in a legal battle regarding user data tied to the XRP token.
The case stemmed from the ongoing lawsuit between Ripple Labs, the creators of XRP, and plaintiff Vladi Zakinov, who claims XRP is an unregistered security.
A court order initially demanded that all US-based crypto exchanges, including Kraken, submit user trading data related to XRP.
However, Kraken contested the order, arguing it would violate user privacy and unfairly expose sensitive financial information.
Kraken opposed the request, arguing that it would violate the privacy rights of its users and impose an undue burden on the exchange. Kraken also claimed that Zakinov had no valid reason to seek such data, as he had not shown any connection between his own XRP purchases and those of other users.
Kraken said that Zakinov was only fishing for information to support his lawsuit against Ripple.
After presenting their case, the judge ruled in favor of Kraken, recognizing the privacy concerns and the potential harm disclosing such data could cause.
This decision protects the financial privacy of thousands of Kraken users who have traded XRP on the platform.
“We are thrilled with the court’s decision,” said Kraken CEO Jesse Powell. “Protecting user privacy is paramount, and we will always fight to ensure our customers’ data remains secure.”
The broader implications of this case are still unfolding. While it doesn’t directly impact the ongoing Ripple lawsuit, it sets a precedent for how user data is handled in future crypto-related legal disputes.
The decision highlights the growing tension between regulatory demands and individual privacy rights in the evolving cryptocurrency landscape.
Kraken’s users have praised the exchange for standing up for their rights and protecting their data.
One of them, Mr. Huber, a blockchain researcher, posted on X that Kraken was the only exchange that fought back against Zakinov’s request.
He said that Kraken showed its commitment to its customers and the crypto industry by defending their privacy and security.