Cryptocurrency exchange Kraken has made a decisive move by filing a motion to intervene in the ongoing legal battle between Ripple and its plaintiffs, according to recent court documents.

Kraken's action comes in response to a court order that has compelled all U.S. exchanges to submit private trading data and the identities of customers who traded in Ripple's XRP with the plaintiffs' legal team.

Protecting client privacy

In the document, the exchange stated that while it does not oppose the long-form notice proposed by the lead plaintiffs, Kraken fears its clients might misconstrue the company's compliance as support for the lawsuit against Ripple.

The firm asserts its right to clear its stance with its clients, underscoring the need to maintain its reputation and the trust of its users.

By intervening, Kraken aims to ensure that its communications with clients remain unfiltered and transparent amid the ongoing lawsuit.

Closer look at Ripple's legal woes

In the legal confrontation between Ripple Labs and a group of plaintiffs led by Zakinov, the central issue at stake is whether XRP should be classified as a security.

The lawsuit alleges that Ripple conducted an unregistered securities offering, a claim Ripple denies by asserting XRP's similarity to other cryptocurrencies like Bitcoin.

As the case developed, a court order demanding that U.S. exchanges disclose users' XRP trading information raised privacy alarms.

U.S. exchanges, including Kraken, find themselves in a delicate position as they balance compliance with legal requests and the protection of their clients' privacy.