Kraken staking, FTX post-bankruptcy hell, Binance news…

Top stories this week

Kraken Reaches $30M Settlement With SEC Over Staking As IRS Seeks User Info

Kraken has agreed to stop offering staking services or programs to US clients after entering into an agreement with the US Securities and Exchange Commission (SEC). In addition to ceasing operations, the crypto exchange will pay $30 million in restitution, prejudgment interest, and civil penalties. The SEC says Kraken has not registered the program as a securities offering. The move sparked controversy within the SEC. Commissioner Hester Peirce publicly scolded his own agency over the shutdownarguing that regulation by enforcement “is not an efficient or fair way to regulate” an emerging industry.

FTX CEO testifies on post-bankruptcy days of ‘pure hell’ at the exchange

John Ray, who took over as CEO of crypto exchange FTX, described in a court hearing some of the company’s chaotic experiences following the company’s declaration of bankruptcy. According to Ray, there was “not a single list of anything” related to bank accounts, income, insurance or personnel, causing a “massive rush for information”. As bankruptcy proceedings continue, the names of two guarantors who signed part of Bankman-Fried’s $250 million bond will remain withheld for the time being, after a last-minute appeal. In another title, a federal judge refused a joint agreement between Bankman-Fried’s legal team and prosecutors that would allow him to use certain messaging apps, including Facebook Messenger.

Binance Temporarily Suspends US Dollar Bank Transfers

Binance has temporarily suspended deposits and withdrawals of US dollars (USD) through bank accounts. The suspension has not been explained and no other trading methods will be affected. The freeze only applies to international users, as Binance.US says its customers will not be affected. The Crypto Exchange Giant Has Been Facing Banking Challenges in the US Recently, Binance’s SWIFT Transfer Partner Signature Bank Says would only process transactions by users with USD bank accounts over $100,000.

Genesis creditors expect 80% recovery under proposed restructuring plan

Genesis Global has reached an “agreement in principle” with Digital Currency Group and its creditors, aiming to return at least 80% of their funds. The deal will eventually see the sale of Genesis’ crypto trading and market making arm as part of the restructuring efforts. Effects of Genesis Bankruptcy Reached Cash Cloud, an ATM operator in the United States and Brazil. Genesis is Cash Cloud’s biggest creditor, with an unsecured loan of $108 million. Cash Cloud has liabilities between $100 million and $500 million.

Ethereum Co-Founder Joe Lubin Says There’s No Chance ETH Will Be Classified As Security

Ethereum co-founder and crypto entrepreneur Joseph Lubin is convinced that Ether will not be classified as a security in the United States. “I think it’s as likely, and would have the same impact, as if Uber were to become illegal,” he told Cointelegaph in an interview in Tel Aviv at the Web3 Building Blocks 23 event. In September 2022 , US SEC Chairman Gary Gensler has suggested that Ethereum’s transition to a Proof-of-Stake (PoS) consensus model could have put ETH in the regulatory spotlight.

Winners and losers

At the weekend, Bitcoin (BTC) is at $21,707Ether (ETH) To $1,525 And XRP To $0.38. The total market capitalization is $1.01 trillion, according at CoinMarketCap.

Among the 100 biggest cryptocurrencies, the top three altcoin gainers of the week are The Graph (TSO) at 74.43%, SingularityNET (AGIX) at 65.51% and Rocket Pool (RPL) at 15.155%.

The top three altcoin losers of the week are Fantom (FTM) at -31.15%, Optimism (OP) at -23.79% and Aptos (APT) at -22.28%.

For more information on crypto prices, be sure to read Cointelegraph Market Analysis.

Most Memorable Quotes

“What we’re seeing is that customers are absolutely interested in digital assets, broadly defined.”

Michael Demissiehead of digital assets at BNY Mellon

“The digital pound could coexist with other forms of currency, including stablecoins.”

Bank of England and Her Majesty’s Treasury

“Obviously, if you want integrity within a metaverse, then blockchain will play a role.”

Robert JoyceChief Technology Officer at Nokia Oceania

“Banks [in the U.S.] reassess whether to continue to provide these [crypto] service is worth the risk.

Aaron Kaplanco-CEO of Prometheum and of counsel at Gusrae Kaplan Nusbaum

“MetaMask has always been an Ethereum wallet. We have to start moving beyond that. The multi-channel future is very clear.

Alex Jupiterproduct manager of accounts and key management at MetaMask

“The CBDC is a way to advance the sophistication of payment systems, as well as provide economic security through a local currency that is not dependent on other countries.”

SoramitsuJapanese financial software developer

Prediction of the week

Ethereum price risks 20% correction amid SEC crackdown on crypto staking

Ethereum’s native token has seen the worst daily performance of the year as the US SEC blocked crypto exchange Kraken from offering crypto staking services. The news drove down the prices of many proof-of-stake blockchain project tokens.

THE SEC crackdown on crypto staking begins as Ethereum’s key network Shanghai upgrade is set to be released in March. Bitwise Asset Management Chief Investment Officer Matt Hougan sees Shanghai as a bullish event for Ether:

“Today, many investors who want to stake ETH and earn yield are sitting on the sidelines. After all, most investment strategies cannot tolerate indefinite lockdown,” Hougan said in a letter to the US. From a technical standpoint, Ether price is positioned for a potential 20% price correction in February, according to Cointelegraph analysis.

FUD of the week

SEC Chairman Issues Warning to Crypto Firms After Kraken Staking Action

US Securities and Exchange Commission Chairman Gary Gensler has warned crypto firms to “come and obey the law” after the agency announced a settlement with crypto exchange Kraken. It is the latest effort by authorities in the country to crack down on crypto firms, as banks would have been discouraged of dealing with crypto businesses in recent weeks by US officials, aimed at making crypto business “completely unbanked,” sources told Cointelegraph.

Stablecoin issuer Paxos reportedly probed by New York regulators

The New York State Department of Finance The services are reportedly investigating Paxos Trust Company, the stablecoin issuer behind Binance USD (BUSD) and Pax Dollar (USDP). The department would seek to protect clients from the risks associated with cryptocurrency investments. On its website, Paxos claims that its BUSD and USDP token reserves are 100% backed by US dollars and US Treasury bonds.

New 3AC Exchange Triggers Backlash From Crypto Community – “No, Thanks”

The launch of the supported exchange project by bankrupt hedge fund Three Arrows Capital (3AC) drew a crowd of angry community members. Open Exchange, a crypto exchange project originally offered by 3AC and CoinFLEX, launched a website on February 9. 3AC co-founder Su Zhu pointed out that the project is a way to make up for past mistakes. 3AC filed for bankruptcy in July, after suffering losses following the collapse of Terra two months earlier.

Best Crypto Features

Justin Aversano takes a leap forward for NFT photography

The journey of Justin Aversano in NFTs began with a personal story of loss and recovery.

180 million yuan digital airdrop in China, Devastation in Turkey, CBDC of Laos: Asia Express

China drops 180 million digital yuan to celebrate the Lunar New Year, by stimulating consumption. APAC crypto exchanges donate to Turkey after devastating earthquake. Laos and Soramitsu launch a proof of concept for a CBDC.

2023 is a breakthrough year for blockchain gaming: Play-to-own

Although the thesis is convincing for crypto games, the way forward is unclear. Interoperability is a thorny issue, and gameplay has yet to catch up with traditional games.