Top news this week
Kraken reaches $30 million settlement with SEC over staking as IRS seeks user information
Kraken has agreed to stop providing staking services or software to US customers after reaching an agreement with the US Securities and Exchange Commission (SEC). Along with ceasing operations, the cryptocurrency exchange will pay $30 million in inconvenience and advance interest on civil judgments and penalties. The SEC claims that Kraken failed to register the software as a securities offering. The move sparked controversy within the Securities and Exchange Commission. Commissioner Hester Pearce has publicly criticized her agency for the shutdown, arguing that regulation by enforcement is “not an efficient or fair way to regulate” an emerging industry.
The FTX CEO bears witness to the stock market’s “pure hell” post-bankrupt days
John Ray, who took over as CEO of cryptocurrency exchange FTX, described in a hearing some chaotic experiences at the company after the company declared bankruptcy. According to Ray, there was “no single list of anything” related to bank accounts, income, insurance or employees, which caused a “huge scramble for information”. With bankruptcy proceedings ongoing, the names of the two guarantors who signed part of Bankman-Fried’s $250 million bail bond will remain withheld for the time being, following a last-minute appeal. In another address, a federal judge denied a joint agreement between Bankman-Fried’s legal team and prosecutors that would have allowed him to use certain messaging apps, including Facebook Messenger.
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Binance to temporarily suspend bank transfers in US dollars
Binance has temporarily suspended USD deposits and withdrawals through bank accounts. The comment has not been clarified, and no other trading methods will be affected. The freeze only applies to international users, as Binance.US claims its customers will not be affected. The cryptocurrency exchange giant has recently faced banking challenges in the US, and Binance’s SWIFT transfer partner, Signature Bank, said it will only process trades by users with more than $100,000 in USD bank accounts.
Genesis creditors expect an 80% recovery under the 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 agreement will eventually see the sale of the cryptocurrency trading and market making arm as part of the restructuring efforts. The effects of Genesis’ bankruptcy have reached Cash Cloud, an automated teller machine operator in the United States and Brazil. Genesis is Cash Cloud’s largest creditor, with an unsecured loan of $108 million. Cash Cloud has commitments of between $100 million and $500 million.
Ethereum co-founder Joe Lubin says there is no chance that ETH could be classified as a security
Ethereum co-founder and cryptocurrency entrepreneur Joseph Lubin is confident that Ether will not be classified as a security in the United States. He told Cointelegaph in an interview in Tel Aviv at the Web3 Building Blocks 23 event. In September 2022, SEC Chairman Gary Gensler suggested that Ethereum’s move to a proof-of-stake (PoS) consensus model might have brought ETH into the regulatory spotlight.
Winners and losers
At the end of the week, Bitcoin (BTC) in $21,707ether (ETH) in $1,525 USD And XRP in $0.38. The total market value of 1.01 USD trillion, according to CoinMarketCap.
Among the top 100 cryptocurrencies, The Graph was the three biggest gainers of the week (GRT) At 74.43%, SingularityNET (AGIX) at 65.51% and Ball Rockets (RPL) by 15.155%.
The three biggest altcoin losers this week are Fantom (FTM) At -31.15% optimism (OP) at -23.79% and Aptos (suitable) by -22.28%.
For more information on cryptocurrency prices, be sure to read Cointelegraph’s market analysis.
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Most memorable quotes
“What we are seeing is that customers are quite interested in digital assets at scale.”
Michael DemicyHead of Digital Assets at BNY Mellon
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Bank of England and Her Majesty’s Treasury
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Robert JoyceChief Technology Officer of Nokia Oceania
Banks [in the U.S.] It is re-evaluated whether to continue to provide these [crypto] The services are worth the risk.”
Aaron KaplanKaplan Nusbaum, co-CEO of Prometheum and advisor to Gusrae
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Alex JupiterDirector of Accounts and Key Management Products at MetaMask
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SuramitsuJapanese financial software developer
predict the week
Ethereum price risks a 20% correction amid SEC crackdown on Crypto Staking
Ethereum’s native token saw its worst daily performance of the year as the US Securities and Exchange Commission suspended cryptocurrency exchange Kraken from offering cryptocurrency storage services. The news pushed up the prices of several proof-of-stake blockchain project tokens.
the The SEC crackdown on cryptocurrency storage has begun as the upgrade of Ethereum’s main network, Shanghai, is set to launch in March. Matt Hogan, Chief Investment Officer at Bitwise Asset Management Shanghai, sees a bullish event for Ether:
“Today, many investors who want to participate in ETH and earn a return are sitting on the sidelines. After all, most investment strategies cannot tolerate indefinite lock-ups,” Hogan said in an investor letter in January. From a technical perspective, Ether price is being positioned for a potential 20% price correction in February, according to Cointelegraph analysis.
The head of the Securities and Exchange Commission (SEC) issues a warning to cryptocurrency firms after taking action on the staking Kraken
US Securities and Exchange Commission Chairman Gary Gensler issued a warning to cryptocurrency firms to “get in and follow the law” after the agency announced a settlement with cryptocurrency exchange Kraken. This is the latest attempt by the country’s authorities to crack down on crypto firms, sources told Cointelegraph, as banks have allegedly been discouraged from doing business with crypto firms in recent weeks by US officials, aiming to make crypto businesses “completely bank-free.” .
Stablecoin issuer Paxos has reportedly been under investigation by regulators in New York
The New York State Department of Financial Services is reportedly investigating Paxos Trust, the stablecoin issuer behind Binance USD (BUSD) and Pax Dollar (USDP). The department is said to seek to protect clients from the risks associated with cryptocurrency investments. Paxos claims on its website that its BUSD and USDP reserves are 100% backed by USD and US Treasuries.
3AC New Exchange Sparks Backlash From Crypto Community – ‘No Thanks’
The launch of the stock exchange project backed by bankrupt hedge fund Three Arrows Capital (3AC) has attracted an angry mob. Open Exchange, a crypto exchange project initially proposed by 3AC and CoinFLEX, launched a website on February 3. 9. 3AC co-founder Su Zhu noted that the project is a way to make up for his past mistakes. 3AC went bankrupt in July, after suffering losses from the Terra collapse two months earlier.
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