(Bloomberg) -- Kraken will pay a $1.25 million fine to settle allegations that it let U.S. residents illegally trade margin products linked to Bitcoin and other cryptocurrencies. 

From about June 2020 to July 2021, Kraken allowed transactions that are supposed to be off limits to U.S. traders, the Commodity Futures Trading Commission said in a Tuesday statement. The crypto exchange also failed to register as a futures commission merchant, the regulator said. 

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