Kraken involvement, 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 engagement services or programs to United States clients after reaching a settlement 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 rebuked her own agency for the shutdown, arguing that enforcement regulation is “not an efficient or fair way to regulate” an emerging industry.

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 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.

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.

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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editorial staff

Writers and reporters at Cointelegraph Magazine contributed to this article.