Why was Kraken sued?

Could you please elaborate on the reasons behind Kraken's legal action? Was it due to a breach of contract, an issue with its trading practices, or something else entirely? How did this lawsuit come to light, and what specific claims are being made against the company? Has Kraken responded to these claims, and if so, what is their stance? Could this lawsuit potentially have a significant impact on Kraken's operations and reputation in the cryptocurrency market? And finally, do you think this lawsuit could set a precedent for other crypto exchanges in the future?