NEWSLETTER
Top news this week
Kraken Reaches $30 Million Settlement With SEC Over Stake As IRS Seeks User Information
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 bankruptcy proceedings continue, the names of two guarantors who signed part of Bankman-Fried’s $250 million bail will remain withdrawn for now, following a last-minute appeal. In another headline, a federal judge denied a joint agreement between Bankman-Fried’s legal team and prosecutors that would allow her to use certain messaging apps, including Facebook Messenger.
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Binance will temporarily suspend US dollar bank transfers
Binance has temporarily suspended deposits and withdrawals of United States 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 it would only process transactions from 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, aiming to return 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. The effects of the 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’s 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%.
To learn more about cryptocurrency prices, be sure to read Cointelegraph’s market analysis.
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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
The native Ethereum token experienced its worst daily performance of 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 has issued a warning to crypto firms to “get in there 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 cryptocurrency companies, as US officials have allegedly discouraged banks from dealing with cryptocurrency companies in recent weeks, aiming to make business of cryptocurrencies is “completely unbanked,” the sources told Cointelegraph.
Paxos Stablecoin Issuer Reportedly Under Investigation By New York Regulators
The New York State Department of Financial Services is reportedly investigating Paxos Trust Company, the issuer of the stablecoin 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 exchange project backed by bankrupt hedge fund Three Arrows Capital (3AC) drew a crowd of angry community members. Open Exchange, a cryptocurrency exchange project that 3AC and CoinFLEX initially proposed, 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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China airdrops 180 million digital yuan to celebrate Lunar New Year, boosting 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
While the thesis is compelling for crypto gaming, the way forward is unclear. Interoperability is a thorny issue, and gameplay has yet to catch up with traditional games.
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