Kraken’s staking down, FTX post-bankruptcy hell, Binance news…

Top news this week

Kraken Reaches $30 Million Settlement With SEC Over Stake As IRS Seeks User Information

Kraken has agreed to stop offering staking services or programs to clients in the United States after reaching an agreement with the United States Securities and Exchange Commission (SEC). Along with the cessation of operations, the crypto exchange will pay $30 million in repayment, pre-judgment interest, and civil penalties. The SEC claims that Kraken did not register the program as a securities offering. The move has generated controversy within the SEC. Commissioner Hester Peirce has publicly said chided his own agency for the shutdownarguing that enforcement regulation “is not an efficient or fair way to regulate” an emerging industry.

FTX CEO testifies on days after 'pure hell' bankruptcy on exchange

John Ray, who took over as CEO of crypto exchange FTX, described in a court hearing some of the chaotic experiences at the company after the company filed for bankruptcy. According to Ray, there was "not a single listing of anything" related to bank accounts, income, insurance or personnel, prompting a "massive scramble for information." As the bankruptcy process continues, the names of two guarantors who signed part of Bankman-Fried's $250 million bail will remain on hold for now, after a last-minute appeal. In another headline, a federal judge denied a joint settlement between Bankman-Fried's legal team and prosecutors that would allow her to use certain messaging apps, including Facebook Messenger.

Binance will temporarily suspend US dollar bank transfers

Binance has temporarily suspended deposits and withdrawals of US dollars (USD) through bank accounts. The suspension was not explained and no other trading methods will be affected. The freeze applies only to international users, as Binance.US claims that its clients will not be affected. The cryptocurrency exchange giant has been facing banking challenges in the US. Recently, Binance's SWIFT transfer partner Signature Bank said that would only process trades by users with USD bank accounts of more than $100,000.

Genesis creditors expect 80% recovery under proposed restructuring plan

Genesis Global reached an “agreement in principle” with Digital Currency Group and its creditors, with the goal of repaying at least 80% of its funds. The deal will eventually see the sale of Genesis's cryptocurrency 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 largest 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 is no chance of ETH being classified as security

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

Winners and losers

At the end of the week, Bitcoin (BTC) I sat down $21,707Ether (ETH) in $1,525 and XRP in $0.38. Total market capitalization is $1.01 trillion, according to CoinMarketCap.

Among the largest 100 cryptocurrencies, the top three altcoin gainers of the week are The Graph (GRT) 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) to -31.15%, Optimism (OP) at -23.79% and Aptos (SUITABLE) at -22.28%.

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

most memorable quotes

"What we see is that clients are absolutely interested in digital assets, in general."

Michael Demissiehead of digital assets at BNY Mellon

"The digital pound could exist alongside other forms of money, including stablecoins."

Bank of England and HM Treasury

"Clearly, if you want integrity within a metaverse, then blockchain will play a role."

Robert JoyceNokia Oceania CTO

"Banks [in the U.S.] are re-evaluating whether to continue providing these [crypto] services are worth the risk.”

Aaron Kaplanco-CEO of Prometheum and attorney for Gusrae Kaplan Nusbaum

“MetaMask has historically been an Ethereum wallet. We have to start going beyond that. The multi-chain future is very clear”.

Alex JupiterProduct Manager for Accounts and Key Management at MetaMask

"CBDC is a way to advance in the sophistication of payment systems, in addition to guaranteeing economic security through a local currency that does not depend on other countries."

SoramitsuJapanese financial software developer

prediction of the week

Ethereum Price Risks a 20% Correction Amid SEC Crackdown on Crypto Staking

Ethereum's native token saw the worst daily performance for the year when the US SEC blocked Kraken from offering cryptocurrency staking services. The news sent the prices of many tokens from proof-of-stake blockchain projects down.

He The SEC's crackdown on cryptocurrency staking begins when the upgrade to Ethereum's key network, Shanghai, is set to go live in March. Bitwise Asset Management Chief Investment Officer Matt Hougan views Shanghai as a bullish event for Ether:

“Today many investors who would like to stake ETH and earn a return are sitting on the sidelines. After all, most investment strategies cannot tolerate an indefinite lockup,” Hougan said in a January letter to investors. From a technical perspective, the 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 issued a warning to crypto companies to “go in and follow the law” after the agency announced a deal with crypto exchange Kraken. This is the latest effort by the country's authorities to crack down on crypto companies, as banks supposedly have been discouraged of dealing with crypto companies in recent weeks by US officials, with the goal of making the crypto business “completely unbanked,” the sources told Cointelegraph.

Paxos Stablecoin Issuer Reportedly Under Investigation By New York Regulators

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

3AC's New Exchange Triggers Backlash From Crypto Community: 'No Thanks'

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

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