Top Stories This Week
Kraken reaches $30M settlement with SEC over staking as IRS seeks user information
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.
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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
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.
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Most Memorable Quotations
“What we see is clients are absolutely interested in digital assets, broadly.”
Michael Demissie, head 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 part.”
Robert Joyce, chief technology officer at Nokia Oceania
“Banks [in the U.S.] are reevaluating whether continuing to provide these [crypto] services is worth the risk.”
Aaron Kaplan, co-CEO of Prometheum and of counsel at Gusrae Kaplan Nusbaum
“MetaMask has historically been an Ethereum wallet. We need to start moving beyond that. The multichain future is very clear.”
Alex Jupiter, product manager of accounts and key management at MetaMask
“CBDC is a way to advance the sophistication of payment systems, as well as ensuring economic security through a local currency that does not depend on other countries.”
Soramitsu, Japanese financial software developer
Prediction of the Week
Ethereum price risks 20% correction amid SEC’s crackdown on crypto staking
Ethereum’s native token saw its worst daily performance of the year as the U.S. SEC stopped crypto exchange Kraken from offering crypto staking services. The news pushed down the prices of many proof-of-stake blockchain project tokens.
The SEC crackdown on crypto staking begins as Ethereum’s key network upgrade, Shanghai, is set for release in March. Bitwise Asset Management’s chief investment officer, Matt Hougan, considers Shanghai a bullish event for Ether:
“Today, many investors who would like to stake ETH and earn yield are sitting on the sidelines. After all, most investment strategies can’t tolerate an indefinite lock-up,” Hougan said in a January investor letter. From a technical perspective, Ether price is positioned for a potential 20% price correction in February, according to Cointelegraph’s analysis.
FUD of the Week
SEC chair issues warning to crypto firms after action on Kraken staking
Stablecoin issuer Paxos reportedly probed by New York regulators
The New York State Department of Financial Services is reportedly investigating Paxos Trust Company, the stablecoin issuer behind Binance USD (BUSD) and Pax Dollar (USDP). The department is reportedly seeking to protect customers from the risks associated with cryptocurrency investments. On its website, Paxos claims that its BUSD and USDP token reserves are 100% backed by U.S. dollars and U.S. Treasury bonds.
3AC new exchange triggers backlash from the crypto community — ‘No, thank you’
The launch of the exchange project backed by the bankrupt hedge fund Three Arrows Capital (3AC) attracted a mob of angry community members. Open Exchange, a crypto exchange project that 3AC and CoinFLEX initially proposed, launched a website on Feb. 9. 3AC co-founder Su Zhu pointed out that the project is a way to make up for his past mistakes. 3AC went bankrupt in July, after suffering losses from Terra’s collapse two months earlier.
Best Cointelegraph Features
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2023 is a make-or-break year for blockchain gaming: Play-to-own
While the thesis is compelling for crypto gaming, the way forward is unclear. Interoperability is one thorny issue, and playability still has yet to catch up to traditional games.
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Editorial Staff
Cointelegraph Magazine writers and reporters contributed to this article.
