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

Top Stories This Week

Kraken reaches $30M settlement with SEC over staking as IRS seeks user information

Kraken has agreed to stop offering staking services or programs to United States clients after reaching an agreement with the U.S. Securities and Exchange Commission (SEC). Along with ceasing operations, the crypto exchange will pay $30 million in disgorgement, prejudgment interest and civil penalties. The SEC claims that Kraken failed to register the program as a securities offering. The move has sparked controversy within the SEC. Commissioner Hester Peirce has publicly rebuked her own agency over the shutdown, arguing that regulation by enforcement “is not an efficient or fair way of regulating” an emerging industry.

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

John Ray, who took over as CEO of crypto exchange FTX, has described in a court hearing some of the chaotic experiences at the firm following the company declaring bankruptcy. According to Ray, there was “not a single list of anything” related to bank accounts, income, insurance or personnel, causing a “massive scramble for information.” As the bankruptcy proceedings continue, the names of two guarantors who signed off on part of Bankman-Fried’s $250 million bail bond will remain withheld for now, after 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 him to use certain messaging apps, including Facebook Messenger.

Binance to temporarily suspend bank transfers in US dollars

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 customers will not be affected. The crypto exchange giant has been facing banking challenges in the U.S. Recently, Binance’s SWIFT transfer partner, Signature Bank, said it would only process trades by users with USD bank accounts over $100,000.

Genesis creditors to 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 their funds. The agreement will eventually see Genesis’ crypto trading and market-making arm sold as part of restructuring efforts. Effects of Genesis’ bankruptcy reached Cash Cloud, an automatic teller machine operator in the United States and Brazil. Genesis is Cash Cloud’s biggest creditor, with a $108 million unsecured loan. Cash Cloud has liabilities between $100 million to $500 million.

Ethereum co-founder Joe Lubin says no chance ETH is classed as security

Ethereum co-founder and crypto entrepreneur Joseph Lubin is confident that Ether won’t be classified as a security in the United States. “I think it’s as likely, and would have the same impact, as if Uber was made illegal,” he told Cointelegaph in an interview in Tel Aviv at the Web3 event Building Blocks 23. In September 2022, U.S. SEC chair Gary Gensler suggested that Ethereum’s transition to a proof-of-stake (PoS) consensus model might have brought ETH into regulatory spotlight.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $21,707, Ether (ETH) at $1,525 and XRP at $0.38. The total market cap is at $1.01 trillion, according to CoinMarketCap.

Among the biggest 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) at -31.15%, Optimism (OP) at -23.79% and Aptos (APT) at -22.28%.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotations

“What we see is clients are absolutely interested in digital assets, broadly.”

Michael…