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Tag: Kraken

  • Kraken Trailer: Fearsome Sea Monster Is Unleashed in Horror Movie

    Samuel Goldwyn Films has shared the official trailer for Kraken, the upcoming Norwegian monster horror movie. It is currently expected to make its U.S. debut sometime next year.

    “In the film, Johanne is a marine biologist who is doing research on a fish farm in Vangsnes, a rural community located by the fjord, when she encounters several strange occurrences. Along with the brutal deaths of two local teenagers, all signs are pointing to the deep fjord; can there be more to the depths than the eye can see?” reads the official synopsis. “At the bottom of Norway’s deepest fjord rests a mythical monster as large as a mountain, with a myriad of arms ready to crush and devour anything they can grab.”

    Check out the Kraken trailer below (watch more trailers):

    What happens in the Kraken trailer?

    The video introduces a marine biologist who investigates the brutal deaths of two local teenagers, which are somehow connected to the fjord. The trailer also teases how the monster was made by a greedy corporation that disrupted the fjord’s ecosystem for the sake of making profits. The ensemble cast includes Sara Khorami, Mikkel Bratt Silset, Ingvild Holthe Bygdnes, Jenny Evensen, and Steinar Klouman Hallert.

    Kraken is directed by Pål Øie, with Vilde Eide writing the film’s screenplay. The suspense action thriller is produced by John Einar Hagen and Einar Loftesnes, with Sveinung Golimo serving as an executive producer. Also leading the creative team is Sjur Aarthun, who has taken on the role of the film’s cinematographer and editor.

    Maggie Dela Paz

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  • Kraken Boss Slams UK Crypto Rules for Crippling User Experience


    Arjun Sethi has likened the FCA’s crypto warnings to cigarette labels, calling them discouraging and counterproductive.

    Kraken Co-CEO Arjun Sethi has criticized the crypto promotion rules enacted by the UK’s Financial Conduct Authority (FCA), warning that the strict regulatory framework is slowing transactions and limiting access to services for users.

    Over the past few months, UK financial watchdogs have come under fire from crypto executives for what many see as an overly cautious approach to the regulation of digital assets.

    Cigarette Box Warning on Crypto Sites

    In remarks to the Financial Times, Sethi compared the risk warnings on UK crypto platforms to the health warnings seen on cigarette boxes, saying that visiting any digital asset website in the country, including Kraken’s, felt like being told that using the service could be harmful. He further explained that the additional transaction steps imposed under the rules make the user experience worse rather than safer.

    Introduced in 2023, the FCA’s Financial Promotions Rule requires all crypto companies operating in the UK to prominently display risk warnings on their websites and add “positive frictions,” such as questionnaires, to gauge whether participants understand the risks associated with crypto investments.

    The issue has gained fresh urgency following incidents such as the UK’s decision to ban Coinbase’s “Everything Is Fine” advertisement.

    According to the Kraken executive, while disclosures are essential, the UK regulator’s overly rigid approach can discourage customers from investing, potentially leading to missed opportunities. He added that the tighter regulatory atmosphere in the country is denying millions of users of his exchange over 75% of the products that its U.S. customers enjoy.

    However, the FCA maintains that its measures aim to safeguard consumers, not discourage investment. It insisted that some users may determine that crypto investing is not suitable for them, an outcome it described as the rules “working as intended.”

    You may also like:

    Debate Deepens on UK’s Crypto Direction

    Sethi is not alone in his criticism. Only a few weeks ago, Bivu Das, the managing director of Kraken UK, spoke of the country’s regulatory measures and the slow approach by watchdogs to set a proper framework.

    He added that the Bank of England’s proposal to cap individual stablecoin holdings lacked clarity, a concern also raised by the vice president of international policy at Coinbase, who noted that no other major jurisdiction had introduced such caps.

    However, not all observers share these concerns. David Heffron, a financial regulation partner at Pinsent Masons, argued that the Bank of England’s new direction demonstrated a strong focus on financial stability. Likewise, Hannah Meakin of Norton Rose described the move as a foundational step toward maintaining the UK’s competitiveness in digital finance.

    Meanwhile, Kraken has continued strengthening its international footprint despite regulatory hurdles, recently acquiring Small Exchange, a CFTC-licensed Designated Contract Market, in a $100 million deal.

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  • Evernorth Has Reached 95% Of Its XRP Treasury Target – Here Are The Numbers

    Evernorth has emerged as the latest powerhouse in institutional crypto accumulation, closing in on its ambitious XRP treasury goal. In just a few days, the firm has reached 95% of its accumulation target, marking a major milestone in XRP’s journey toward broader institutional adoption. The rapid growth of Evernorth’s reserves and its strategic partnerships has sparked renewed excitement across the XRP community, signaling what could be a pivotal shift in how institutions engage with the cryptocurrency. 

    Evernorth Nears $1 Billion In XRP Holdings

    A new report from CryptoQuant has revealed that Evernorth’s XRP holdings is now nearing the $1 billion funding milestone, positioning it among the top institutional holders of the cryptocurrency. According to JA Maartunn, a community analyst at CryptoQuant, Evernorth currently holds 388,710,606.03 XRP, reaching 95% of its $1 billion target. 

    Related Reading

    The company’s total XRP treasury is now valued at approximately $947,183,571, with unrealized profits of roughly $46 million generated in four days. This figure reflects an average purchase price of $2.44 per XRP, which Maartunn believes could become a defining price level for the cryptocurrency’s market trajectory.

    Source: Chart from Evernorth on X

     Notably, Evernorth’s XRP treasury comes amid a broader trend of institutional diversification toward digital assets. Earlier this year, several major crypto treasury institutions—most notably Strategy, with its aggressive Bitcoin accumulation strategy, and The Ether Machine, with its dedicated focus on Ethereum—set the tone for large-scale crypto accumulation. 

    Evernorth’s expanding holdings signal a decisive shift beyond BTC and ETH, underscoring a maturing institutional demand for alternative layer-1 assets. It also suggests that XRP may become the next frontier for institutional treasuries seeking exposure to high-liquidity, regulated crypto assets.

    Evernorth’s XRP Growth Strategy 

    Asheesh Birla, the CEO of Evernorth, introduced the treasury company last week, on October 20, through an X post. He described it as an institutional vehicle built to propel XRP’s global adoption. The announcement detailed the company’s plans to go public through a SPAC merger with Armada Acquisition Corp II (NASDAQ:AACI), targeting gross proceeds of more than $1 billion.

    Related Reading

    Evernorth’s growth strategy includes acquiring XRP through innovative financial structures designed to maximize XRP per share and expanding internationally into key markets like Japan and South Korea. The company also plans to diversify its yield generation through risk-mitigated treasury deployment. These initiatives reflect a deliberate, structured approach toward building a long-term institutional presence around XRP.

    Ripple CEO Brad Garlinghouse has also praised Birla’s initiative, noting Ripple’s partnership and investment alongside prominent firms such as SBI Holdings, Pantera Capital, Kraken, GSR, and Rippleworks. Garlinghouse said that Evernorth’s participation in institutional lending, liquidity provision, and DeFi yield opportunities will be instrumental in expanding XRP’s utility. Ripple’s CTO, David Schwartz, who joins Evernorth as a strategic advisor, echoed this sentiment, expressing enthusiasm for building scalable opportunities for XRP across DeFi and capital markets.

    XRP
    XRP trading at $2.65 on the 1D chart | Source: XRPUSDT on Tradingview.com

    Featured image from Adobe Stock, chart from Tradingview.com

    Scott Matherson

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  • Rakuten Offering $150 Bonus for New Kraken Account

    Rakuten Offering $150 Bonus for New Kraken Account

    Rakuten is offering a bonus of $150 or 15,000 Amex Points when you open a new Kraken account. You can possibly get an extra $75 if you add a referral code after clicking through Rakuten and creating your account.

    Cash Back is only available for first time customers in the US who complete a trade of $200 or more in their first 30 days after signing up. Cash Back will be automatically added to your Rakuten account within a few months. You can see the offer here.

    Kraken is a popular cryptocurrency exchange that allows users to buy, sell, and trade digital assets. Kraken does not offer services to residents of New York (NY), and Maine (ME).

    If you don’t have a Rakuten account, you can also earn a bonus of $50 or 5,000 Amex Points when you sign up now. You can even convert that to Bilt Points soon.

    DDG

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  • Monero (XMR) Suffers 51% Attack, Kraken Halts Deposits

    The blockchain focused on user privacy saw one of its mining pools take over the network’s hash rate.

    No damage has been reported yet, but history suggests that extensive losses could occur once the harm has been done.

    Taking Over Control

    The cryptocurrency exchange Kraken has temporarily stopped Monero deposits to the platform due to the ongoing 51% attack against the privacy-focused blockchain.

    This attack is made possible when a single mining entity controls over 50% of the network’s hash rate (the computational power needed to validate transactions), allowing them to double-spend (i.e., unauthorized production and spending of money) and reorder transactions on the blockchain ledger.

    This was flagged by the exchange on Friday, and as of the time of writing, there has been a new update posted:

    “Monero (XMR) deposits have been re-enabled and now require 720 confirmations before crediting. Given the current uncertainty around the security of the Monero network due to significant consolidation of hash rate under a single entity, Kraken may halt deposits at any time and delay crediting at its discretion.”

    The mining pool responsible for the disruption is Qubic, a blockchain that hosts an AI model called AIGarth. According to a post on their blog, this was an experiment they conducted earlier last week, and they claimed this was possible via unique consensus models available on their chain. This was aimed at proving that Monero’s network is not secure enough and that Qubic’s validators should be responsible for securing it going forward.

    They further stated that the “Monero network’s core functionality remains intact. Its privacy, speed, and usability have not been compromised.”

    The team behind the blockchain network has not yet confirmed or denied any aftereffects of the attack. At press time, the native token, XMR, trades at around $276, even up 4% on the day, unaffected by the event.

    Source: CoinMarketCap

    Previous Examples Of Such Attacks

    While it’s still early to determine if this controversial attack will have any effects on the blockchain, there have been past scenarios where the consequences have been quite detrimental.

    Ethereum Classic (ETC), a split from the Ethereum (ETH) blockchain we know today, is the “classic” version of the chain that was initially launched in 2015. Between 2019 and 2020, the network suffered two 51% attacks involving double-spending, resulting in over $6 million in losses.

    Another spin-off, Bitcoin Gold (BTG), the “user-friendly” alternative to Bitcoin (BTC), underwent a double-spend attack in 2018, resulting in a loss of around $18 million.

    The majority of this type of attack has subsided in recent years, primarily due to technological advancements, blockchain upgrades, and improvements in consensus models. As noted above, we have yet to see the impact of this most recent network security breach.

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  • Crypto Companies Pour $170M into Premier League Sponsorships

    Crypto Companies Pour $170M into Premier League Sponsorships

    According to a September 7 report by Bloomberg, Premier League (PL) clubs have secured a record-breaking $170 million in sponsorship deals from crypto companies for the 2024/25 season.

    This uptick comes as league participants face tightening restrictions on gambling sponsorships, which have traditionally been a major source of revenue for them.

    Crypto Sponsorships on the Rise

    Per the report, several top clubs have already signed major crypto deals. For instance, leading crypto exchange Kraken is sponsoring Tottenham Hotspur, La Liga’s Atlético Madrid, as well as RB Leipzig from the German Bundesliga.

    Meanwhile, in June 2023, reigning Premier League champions Manchester City extended their partnership with OKX for three years in a deal that will cost the platform $70 million.

    Another crypto exchange, Crypto.com, is also heavily involved in football. The company, which owns the naming rights to the former Staples Center, hosting the Los Angeles Lakers and Los Angeles Clippers, among others, announced in August that it will sponsor UEFA’s Champions League until 2027.

    The crypto sponsorship influx isn’t limited to just the biggest names in the biggest leagues; Turkish side Galatasaray recently signed a two-season deal with blockchain analytics firm Arkham Intelligence, worth about $4 million, to have its logo featured on the team’s shirt sleeves.

    Gambling Out, Crypto In

    For PL clubs, these partnerships mark a major shift in the sponsorship landscape, especially with a looming proscription on front-of-shirt gambling ads by mid-2026. This is in addition to a 2019 “whistle-to-whistle” ban on gambling ads during live matches.

    During the 2023/24 season, eight teams had front-of-shirt gambling sponsors, collectively earning them nearly $80 million per year.

    However, according to Daniel McDonagh, an associate at UK law firm Charles Russell Speechlys, who was quoted in the Bloomberg report, crypto firms are now stepping in to fill the vacuum caused by the limitations on gambling sponsorship.

    Some feel the move is part of efforts to clean up the image of the digital asset industry following the bad press that came with the collapses of several high-profile enterprises, including Three Arrows Capital (3AC), Voyager Digital, and FTX.

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    Wayne Jones

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  • Kraken and Spanish Football Club Atlético de Madrid Shake Hands on a Major Sponsorship Deal: Details

    Kraken and Spanish Football Club Atlético de Madrid Shake Hands on a Major Sponsorship Deal: Details

    TL;DR

    • Kraken has partnered with Atlético de Madrid as its Official Crypto and Web3 Partner and Official Sleeve Partner, aiming to bridge the cryptocurrency industry and the sports world.
    • The initiative aims to enhance fans’ digital experiences and promote cryptocurrency education.

    The Terms of the Collaboration

    The US-based cryptocurrency exchange – Kraken – announced its partnership with one of the most successful Spanish football teams – Atlético de Madrid. The company will become the club’s Official Crypto and Web3 Partner and its Official Sleeve Partner from the start of the new La Liga season (scheduled for mid-August this year).

    The collaboration is expected to create a bridge between the cryptocurrency industry and the sports world, “unlocking great opportunities” for Spanish football fans and Kraken’s users. Speaking on the matter was Mayur Gupta – Chief Marketing Officer of the exchange:

    “We’re proud to partner with such a distinguished football club, which equally recognizes that success requires a meticulous focus on its own processes. We’ve put in nearly 13 years to become one of the most trusted crypto platforms, and we look forward to collaborating with Atlético de Madrid to educate more people about the true potential and value of crypto.”

    In turn, Oscar MayoChief Revenue and Operating Officer of the club – described Kraken as “the ideal partner” that could help Atlético de Madrid, which aims to increase its efforts in innovation and technology. 

    “We are sure that this partnership will ensure that our fans enjoy a digital experience which extends beyond matchdays at the stadium,” he added.

    Atlético de Madrid has won 33 titles in its 121-year history, making it Spain’s fourth-most successful football team. The club in the second spot with 99 titles – FC Barcelona – has already jumped on the crypto bandwagon.

    Two years ago, it teamed up with WhiteBIT. The latter will serve as Barca’s official cryptocurrency exchange partner until June 2025. 

    Kraken’s Previous Endeavors in the Sports World

    The company made the headlines last year when shaking hands with the popular Formula 1 teamWilliams Racing. As a result, Kraken’s logo became visible on the cars driven by Alex Albon and Logan Sargeant. In addition, the brand was featured on the drivers’ clothing. 

    Other well-known cryptocurrency exchanges that have made a serious presence in the past few years include Crypto.com and the now-defunct FTX. The former became the official partner of the Miami Grand Prix in 2022, while the latter inked a deal with Mercedes. 

    However, the team suspended the collaboration shortly after the platform’s collapse in November 2021.

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    Dimitar Dzhondzhorov

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  • Pro-Trump Michigan attorney loses spectacularly in yet another courtroom drama

    Pro-Trump Michigan attorney loses spectacularly in yet another courtroom drama

    Michigan “Kraken” lawyer Stefanie Lambert, who unsuccessfully tried to overturn the 2020 presidential election in Michigan and was later charged with improperly accessing voting equipment, has lost yet another court battle in her quest to prove baseless claims about voter fraud in the state.

    Macomb County Circuit Judge Edward A. Servitto dismissed Lambert’s request under the Freedom of Information Act (FOIA) to obtain election records from local clerks that contain sensitive information, including voter history extract files from electronic pollbooks. Her legal claims are baseless, the judge ruled.

    Last summer, Lambert sued 16 cities and townships, along with their clerks, to force them to disclose the information as she continued to peddle false conspiracy theories about widespread election fraud.

    Michigan Secretary of State Jocelyn Benson instructed the clerks to deny the FOIA requests based on exemptions in the public records law. Benson asked the clerks to redirect the FOIA request to her department, which could provide the information without the sensitive data.

    Arguing the information from the clerks contained proprietary information and sensitive voter data, Michigan Attorney General Dana Nessel filed a motion to intervene in the case on behalf of Benson.

    In addition to dismissing the case, Servitto rejected Lambert’s argument that Benson lacked the authority to instruct the local clerks to deny the requests.

    “I am grateful that the Court reaffirmed Secretary Benson’s authority to safeguard Michigan election records and to provide public data without compromising private, sensitive information,” Nessel said. “My office will always protect election security against those who have a blatant disregard for voter privacy.”

    Lambert, a lawyer from South Lyon, has worked on lawsuits alleging “massive election fraud.” She also teamed up with disgraced Texas attorney Sidney Powell, who described her legal actions as releasing the “Kraken.”

    Lambert was arrested in Washington D.C. in March after she failed to appear at a hearing involving felony charges of improperly accessing voting equipment in her quest to prove her baseless claim that the election was stolen from Donald Trump. She is facing two different sets of criminal charges in connection with allegedly mishandling voting equipment.

    Metro Times couldn’t reach Lambert for comment.

    Steve Neavling

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  • Chamber of Digital Commerce Backs Kraken in SEC Lawsuit

    Chamber of Digital Commerce Backs Kraken in SEC Lawsuit

    The Chamber of Digital Commerce (CDC) has filed an amicus curiae to defend Kraken in a lawsuit the U.S. Securities and Exchange Commission (SEC) initiated in 2023.

    Notably, the CDC supported the crypto exchange’s motion to dismiss the lawsuit in its latest filing.

    Chamber of Digital Commerce Argues for Kraken

    In a February 27 filing, the Chamber explained that the amicus brief aims to address and counter the SEC’s current approach to digital asset industry regulation.

    The CDC’s argument is rooted in the belief that the SEC’s aggressive regulatory tactics, through enforcement actions rather than clear, legislated rules, could stifle innovation within the digital asset space. According to the CDC, the approach is not only hindering economic growth and job creation but also affecting financial inclusion efforts.

    The trade body explained that the SEC’s attempt to apply securities laws to all digital asset transactions broadly is legally flawed. It further asserted that digital assets are not “investment contracts.”

    The body warned that the enforcement efforts by the SEC could impact the trillion-dollar digital asset space and, by extension, the United States economy. Hence, there is a need to bring about clear regulations whereby Congress needs to bring statutory clarity instead of relying on the watchdog’s efforts to regulate.

    Notably, in November 2023, the SEC initiated a lawsuit against Kraken, accusing the cryptocurrency exchange of functioning as an unregistered securities exchange, broker, dealer, and clearing agency. Furthermore, it alleged that Kraken had mixed customer funds with its corporate finances, among other accusations. In response, the firm and its representatives denied the SEC’s allegations, choosing to challenge the lawsuit in court.

    Kraken Launches Institutional Platform

    Meanwhile, the exchange has launched a new division, Kraken Institutional, dedicated to serving institutional clients to capture a portion of the market for spot Bitcoin exchange-traded funds (ETFs).

    The institution brand aims to combine the existing institutional services, such as crypto staking for clients outside the United States and spot and over-the-counter trading crypto staking. The target audience, it explained, is asset managers, hedge funds, and high-net-worth individuals.

    Tim Ogilvie, the co-founder of Staked (which was acquired by Kraken in December 2021), will lead the newly established division. Ogilvie noted the rapidly growing institutional interest in crypto owing to the recent approval of Bitcoin ETFs.

    Kraken Institutional is entering into direct competition with established players such as Coinbase Institutional and Coinbase Prime, which were launched in 2021 to serve institutional investors. Kraken Institutional faces competition from Binance Institutional, which was introduced in mid-2022.

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  • Kraken Notifies XRP Holders Of Benefits From Zakinov Case

    Kraken Notifies XRP Holders Of Benefits From Zakinov Case


    Crypto exchange Kraken started notifying affected XRP holders about the potential monetary benefits they could receive from the class action lawsuit against Ripple.

    The exchange recently emerged victorious in the Zakinov v. Ripple Case. The exchange successfully intervened to protect its customers’ data from being shared without their consent.

    Kraken Begins The Notification Process

    Kraken, one of the largest crypto exchanges in the world, intervened in the Zakinov v. Ripple lawsuit, seeking to protect its customer’s privacy and data. The court ruling allowed Kraken to inform the affected users about the class action against Ripple, ultimately giving the customers the option to decide whether to participate in the lawsuit.

    Kraken has now begun to notify eligible customers about the potential monetary benefits from the Zakinov v. Ripple lawsuit. The notification is aimed at Kraken users who purchased XRP during the previously established period, as the email stated:

    Our records indicate that you have purchased XRP on Kraken between July 2, 2017 and June 30, 2023, which means that it might be within your rights to receive money or benefits that come from the lawsuit, depending on the outcome.

    Yassin Mobarak, Dizer Capital Founder, was among the recipients, and he shared part of the email on X (formerly known as Twitter), expressing his surprise about the notification and the possibility of earning a profit from his XRP holdings through the class action lawsuit.

    Mobarak expressed his initial disbelief in the email’s legitimacy, as recent phishing attacks exploited official email accounts of actors in the Web3 industry and exposed users to a massive and sophisticated phishing campaign.

    The legitimacy of the emails was doubted by several Kraken customers who sought confirmation from the exchange’s official X account. Kraken’s support team confirmed the email as safe and authorized by the exchange.

    Next Steps For XRP Holders

    Following the notification, Kraken has updated its support page to provide customers with further details about the class action lawsuit.

    The exchange addressed doubts such as who the affected parties are, clarifying that it “only applies to class members who purchased XRP within the United States during the relevant class period” and offering further information about the lawsuit:

    The lawsuit also claims that persons or entities who purchased XRP during the class period (July 3, 2017, to June 30, 2023) have the right to recover (a) the consideration paid for the XRP, with interest, if they retained the XRP, less the current price of the XRP or upon tendering the XRP, or (b) damages if they sold the XRP at a loss.

    Lastly, the exchange presented two options for the affected customers: do nothing or ask for an exclusion from the lawsuit.

    If the customer decides to do nothing, they will keep the possibility of getting the money or benefits from the lawsuit’s resolution. However, they automatically give up on any rights to sue Ripple separately in the future.

    If they decide to be excluded from the class action and the potential benefits, XRP holders maintain the right to sue the defendant and must send a signed “Exclusion Request” statement by April 5, 2024.

    XRP is trading at $0.52325 in the hourly chart. Source: XRPUSDT on TradingView.com

    Featured image from Unsplash.com, Chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.





    Rubmar Garcia

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  • 7 crypto court cases coming in 2024

    7 crypto court cases coming in 2024

    Several crypto industry stakeholders have pending lawsuits in the U.S. and other jurisdictions following a busy year for government prosecutors and digital asset attorneys.

    2023 featured crypto’s largest court case to date coupled with a multi-billion dollar settlement between the industry’s largest exchange and several U.S. regulatory bodies. However, 2024 promises another series of court battles and crypto defendants arguing against illegal doings.

    The U.S. Securities and Exchange Commission (SEC) sued multiple crypto businesses in what some proponents termed a “regulation by enforcement” campaign against blockchain assets.

    According to SEC Chair Gary Gensler, the majority of these crypto assets qualify as securities and fall under the purview of existing financial policies. He views the ecosystem as rife with fraud and non-compliance.

    The Commodity Futures Trading Commission (CFTC) kept apace with Gensler’s SEC, fielding 47 lawsuits involving digital asset operators accused of fraud and running Ponzi schemes. Indeed, the CFTC recorded its largest-ever win after fining Cornelius Johannes Steynberg of Stellenbosch $3.4 billion.

    New cases are likely to emerge amid unresolved litigation and rolling enforcement action. These are the seven crypto cases to watch at press time.

    Binance

    Crypto’s largest exchange, Binance, reached a record-breaking $4.3 billion settlement with the CFTC, the U.S. Department of Justice, and the Treasury Department. Former CEO Changpeng Zhao also stepped down and pleaded guilty to at least one felony charge.

    However, the SEC is still suing Binance and was notably absent from the multi-agency resolution announced in November. The SEC said Binance broke securities laws by operating an unregistered exchange and offering illegal securities like the BUSD stablecoin, a joint venture with Paxos. 

    Richard Teng, the new Binance CEO, would lead the company through an SEC lawsuit and adjust to the monitorship agreed upon with authorities.

    Celsius

    The bankrupt crypto lender is accused of defrauding thousands of investors under the leadership of ex-CEO Alex Mashinsky. Mashinsky denied wrongdoing after his arrest in July and indictment on seven criminal charges. 

    His trial will begin in September while Celsius faces suits from the CFTC and the SEC. A third lawsuit filed by the Federal Trade Commission was settled.

    Coinbase 

    Like Binance, the SEC sued Coinbase in June. Coinbase allegedly failed to register its exchange and illegally provided staking-as-a-service to U.S. investors. Coinbase will square off with the securities watchdog in a Southern District Court of New York after denying the allegations. 

    The crypto exchange also saw its rule-making petition denied, although CEO Brian Armstrong said Coinbase would not give up. 

    FTX

    While FTX founder Sam Bankman-Fried was convicted on all seven charges, including fraud at his exchange and crypto trading firm Alameda Research, a second trial to address severed counts may be held. 

    Federal prosecutors could sue Bankman-Fried for unlawful political donations and bribing foreign government officials. A New York court is scheduled to sentence the fallen crypto mogul in March. This is the same time a second FTX trial may be pursued. Bankman-Fried’s bid for a delayed sentencing was already refused.

    Kraken

    Kraken pulled out of New York, but the SEC still has a case against the Jesse Powell-founded crypto exchange. The SEC accused Kraken of commingling customer funds and operating an unregistered securities exchange. Kraken promised to respond.

    David Ripley, Kraken CEO, said the company does not list securities, and the SEC does not have a regulatory structure to register compliant crypto firms.

    Ripple

    Ripple partial victory in a multi-year legal tussle with the SEC over XRP sales was considered a turning point by many in crypto. The SEC said Ripple’s XRP sales to institutional and retail investors broke securities laws. 

    Judge Analisa Torres ruled that XRP sales on exchanges were not unregistered securities, while institutional offerings were. Either side may appeal outcomes as negotiations are expected to decide possible penalties for Ripple based on sales to sophisticated investors.

    Tornado Cash

    The U.S. Treasury sanctioned Tornado Cash in August 2022 for allegedly enabling money laundering and other criminal activity. Co-founders of the Ethereum-based mixing service also face legal action. 

    Tornado Cash developers Roman Storm and Roman Semenov stand accused of sanctions evasion and aiding money laundering. Both defendants deny the charges, and Storm was arraigned in Manhattan court. 

    Another developer, Alexey Pertsev, spent nearly nine months in jail before his release in the Netherlands pending a trial in March.


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    Naga Avan-Nomayo

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  • What Kraken Co-Founder Had to Say About Binance’s Settlement

    What Kraken Co-Founder Had to Say About Binance’s Settlement

    In his latest remarks, Kraken co-founder Jesse Powell spoke about the current state of the cryptocurrency industry amidst a backdrop of significant regulatory actions.

    Powell’s comments came shortly after a settlement between Binance and the U.S. Department of Justice, resulting in a $4.3 billion fine for Binance.

    Jesse Powell Critiques Regulatory Landscape

    In a recent post on X, Powell expressed his thoughts on the $4.3 billion fine settlement between Binance and the U.S. Department of Justice. Powell noted that this development makes the competitive landscape “feel a bit more fair today.”

    “The last 12 months have answered 2 nagging questions from shareholders: 1. How are they going so fast? 2. How are they getting away with it?” Powell wrote. “It’s hard to keep faith while your market share dwindles and the only enforcement that’s happening is against the good guys.”

    Powell also expressed concern about the ongoing threats to the crypto industry’s reputation, highlighting the need to  “self-police” amidst what he perceives as inconsistent enforcement actions by regulatory bodies.

    His comments included references to other major players in the crypto industry, like Coinbase and Ripple, which he described as “easy targets” for the SEC, while more significant offenders, particularly those operating offshore, seem to avoid similar levels of attention.

    Kraken Faces New SEC Allegations Amidst Ongoing Regulatory Scrutiny

    In February, Kraken’s parent companies were charged with failing to register their crypto asset staking-as-a-service program, leading to a $30 million settlement.

    On November 21, the SEC filed a new complaint alleging that Kraken operates as an unregistered national securities exchange, broker, and clearing house.

    In a separate post, Powell responded to this development, stating, “USA’s top decel is back with another assault on America.” He said, “Message is clear: $30m buys you about 10 months before the SEC comes around to extort you again.”

    In a recent blog post, Kraken also contested the SEC’s allegation that its products were investment contracts, calling the claim legally incorrect and factually false. The company argued that the regulatory framework being applied by the SEC is non-existent, thereby creating an unfair and challenging environment for crypto firms operating in the United States.

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    Wayne Jones

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  • Crypto analyst blasts Kraken lawsuit as SEC’s money grab, criticizes attacks on ADA

    Crypto analyst blasts Kraken lawsuit as SEC’s money grab, criticizes attacks on ADA

    In a YouTube published video yesterday, crypto analyst The Luckside Crypto host reacted strongly to news that the SEC has sued crypto exchange Kraken.

    The analyst expressed disbelief, stating “I can’t believe we are still having these discussions.” He claims the SEC alleges no fraud, manipulation, customer harm or security issues with Kraken. Rather, the suit simply targets Kraken’s large amount of assets under management.

    The Luckside Crypto host speculated this is another SEC “money grab” to fund more crypto lawsuits, on the heels of settlements earlier this year. He accused the SEC of “not making much headway” in other cases.

    Additionally, the analyst derided the SEC for still alleging coins like Cardano (ADA) and Solana (SOL) are securities. He firmly states “ADA’s not a security, Solana’s not a security.” He sees the SEC overstepping its authority to regulate assets on secondary exchanges.

    While noticing a slight market pullback, the host claims this lawsuit is having little price impact compared to previous regulatory actions. He believes the crypto sector will move forward regardless, heading toward the 2024 Bitcoin (BTC) halving and continued adoption.

    Finally, the analyst predicts the SEC will eventually face restrictions, as Congress and courts intervene on cases like this that target well-functioning crypto firms. But for now, he sees the SEC as “trying to be the big dogs” and failing to protect investors with these actions.


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    Adrian Zmudzinski

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  • The SEC Just Sued Kraken: Here’s Why

    The SEC Just Sued Kraken: Here’s Why

    The U.S. Securities and Exchange Commission (SEC) filed a 90-page lawsuit against cryptocurrency exchange Kraken on Monday, re-centering the firm among a handful of crypto giants in the agency’s legal crosshairs.

    The lawsuit accuses Kraken of a slew of securities law violations, and of commingling customer funds with corporate assets in ways that could risk major losses for both parties.

    The SEC Strikes Again

    Per an accompanying press release from the SEC, Kraken has simultaneously operated as an unregistered securities exchange, broker, dealer, and clearing agency in the United States, intertwining all such traditional services since 2018.

    Specifically, the company made nine-figure profits by “unlawfully facilitating the buying and selling of crypto asset securities.”

    Such charges mimic those that the SEC levied against Coinbase and Binance in June, naming many of the same “crypto asset securities” mentioned in the prior lawsuits, alongside some new tokens like ALGO, ATOM, COTI, MANA, and OMG.

    “Kraken’s choice of unlawful profits over investor protection is one we see far too often in this space, and today we’re both holding Kraken accountable for its misconduct and sending a message to others to come into compliance,” stated SEC enforcement director Gurbir S. Grewal.

    In their respective defenses, Binance and Coinbase have denied listing securities on their platform, accusing the SEC of misinterpreting securities laws to be overly broad.

    Binance, for instance, has likened cryptocurrencies involved within an investment contract to oranges or trading cards – not to investment contracts themselves which inherently include an expectation of profit.

    In a conversation with CryptoPotato, patent lawyer Sandy Seth argued that the SEC’s arguments contain no merit in either its case against Kraken or Coinbase, for largely the same reasons.

    “Investment contracts require some form of financial interest in a company, ie common enterprise,” he argued. “This is also why sports or concert tickets or antique cars or art are not securities.”

    Commingling Funds

    Regarding its handling of customer assets, Kraken used poor internal accounting that put customer funds at risk, including paying operational expenses using accounts that held customer assets.

    The agency noted that Kraken’s own internal auditor said the company’s practices created “a significant risk of loss” for customers. For example, the auditor found that as of December 31, 2021, Kraken held $33.6 million worth of customer fiat within its corporate accounts.

    The company’s poor internal controls allegedly led to accounting deficiencies around customer assets held in 2020 and 2021 that have only been identified in August of this year.

    “These errors were a result of Kraken’s poor recordkeeping practices and failure to properly record margin transactions, underscoring the deficient internal controls at the company,” the SEC wrote.

    Back in February, Kraken paid $30 million to settle charges with the SEC related to its staking as a service product, which the SEC considered an unregistered security.

    The post The SEC Just Sued Kraken: Here’s Why appeared first on CryptoPotato.

    Andrew Throuvalas

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  • Kraken To Suspend All USDT, WBTC Deposits In Canada

    Kraken To Suspend All USDT, WBTC Deposits In Canada

    Crypto exchange Kraken has confirmed that it plans to close all trading, deposits, and withdrawals for Tether USD (USDT), Wrapped Bitcoin (WBTC), and other reserve-backed assets in Canada.

    The suspension follows a similar stablecoin clampdown at other Canadian exchanges, amid regulatory guidance pertaining to the legal standing of such tokens.

    No More Value-Pegged Tokens At Kraken

    According to an email received by CryptoPotato from Kraken on Friday, the firm is now “required” to suspend deposits, withdrawals, and trading in Canada for Tether (USDT), Dai (DAI), Wrapped Bitcoin (WBTC), Wrapped Ether (WETH), and Wrapped Axelar (WAXL).

    As of November 30 at 12:00 p.m. EST, deposits and trading for each coin will end. Withdrawals will end on December 4 at 11:00 a.m. EST, with such assets remaining on the platform to be converted into USD at the prevailing market rate on December 5.

    “If you hold balances in any of USDT, DAI, WBTC, WETH, or WAXL we encourage you to consider one of our supported trading pairs or to withdraw prior to November 30th,” wrote Kraken.

    All such assets are similar in that they are derivatives of other currencies and/or digital assets. USDT and WBTC, for example, are derivatives of the US dollar and Bitcoin, and are backed by centralized reserves comprised of cash and BTC respectively.

    Canada’s Stablecoin Crackdown

    Back in April, rival exchange Coinbase also announced its cancellation of support in Canada for stablecoins including USDT, RAI, and DAI, for failing to meet the company’s listing standards. The suspension took effect last month.

    Crypto.com announced a similar stablecoin halt in January, specifically citing instructions from the Ontario Securities Commission (OSC). For its part, Coinbase often emphasizes that its platform does not list securities.

    While market regulators in the United States continue to bicker about the legal status of stablecoin assets, the Canadian Securities Administrators (CSA) clarified in December that they view any value-pegged crypto assets as securities.

    The agency stressed at the time that crypto trading platforms are “prohibited from permitting Canadian clients to trade, or obtain exposure to, any crypto asset that is itself a security and/or a derivative.”

    Despite the fierce regulations, Coinbase has praised Canadian lawmakers for advancing recommendations that would recognize citizens’ right to self-custody, and the distinct nature of stablecoins from other cryptos.

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    Andrew Throuvalas

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  • Whale Moving Large Stash Of Ethereum To Kraken, Prices Bullish And Unmoved

    Whale Moving Large Stash Of Ethereum To Kraken, Prices Bullish And Unmoved

    Data from Lookonchain, a blockchain analytics platform, on October 20, shows that one Ethereum (ETH) whale is actively moving coins to Kraken, a crypto exchange, and appears to be selling. The unidentified whale deposited 35,176 ETH, worth over $56.5 million when writing, and withdrew $10 million in USDT hours later. USDT is the world’s most liquid stablecoin, tracking the value of the USD. 

    Ethereum Whale Selling On Kraken

    Still, it is not immediately clear whether the whale ended up selling the whole stash and only choosing to withdraw $10 million. What’s evident is that the unknown whale has been actively accumulating Ethereum for some years before deciding to take profit.

    Looking at market trends, the whale appears to be taking profit and exiting. Often, when coins are moved to centralized crypto exchanges, market participants interpret the event as net bearish. This can impact sentiment, even forcing prices lower, especially if the broader crypto market is falling.

    Deposits to Kraken| Source: Lookonchain on X

    According to Lookonchain, the whale accumulated 35,176 ETH on Kraken at an average price of around $415. When the address chose to liquidate, its realized profit was approximately $41.8 million. Ethereum prices have more than quadrupled the average entry price at spot rates, meaning the whale remains “in green” despite recent market gyrations. 

    Ethereum whale accumulating| Source: Lookonchain on X
    Ethereum whale accumulating| Source: Lookonchain on X

    Since prices have been primarily dicey, moving horizontally and occasionally posting sharp falls, the whale might have chosen to exit. Even so, it could not be ascertained what motivated the ETH holder to sell when sentiment is overly improving across the crypto scene.

    Presently, Ethereum traders are bullish, expecting prices to increase in the sessions ahead. Notably, as of October 20, prices were relatively firm and rising. To illustrate, Ethereum is up roughly 3%, and bulls are soaking selling pressure. At the same time, the coin is up 5% from October 2023 lows. 

    Traders Bullish, Will ETH Clear $2,000?

    Ethereum price charts show that the immediate resistance level in the medium term is at around $1,750, recorded in early October. On the flip side, support is at $1,530. A bullish breakout at the back of rising volumes pushing the coin above the resistance level may trigger more demand, propelling it toward the psychological $2,000 level.

    Ethereum price on October 20| Source: ETHUSDT on Binance, TradingView
    Ethereum price on October 20| Source: ETHUSDT on Binance, TradingView

    In early October, the United States Securities and Exchange Commission (SEC) approved several Ethereum Futures Exchange-Traded Funds (ETFs), including VanEck Ethereum Strategy ETF (EFUT) and ProShares Ether Strategy ETF (EETH). Analysts interpreted this decision as a boost for ETH since it allowed institutions to have a regulated way of investing in Ethereum without necessarily having to buy and store the coins by themselves.

    Feature image from Canva, chart from TradingView

    Dalmas Ngetich

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  • The Case for Kraken

    The Case for Kraken

    A new subvariant of SARS-CoV-2 is rapidly taking over in the U.S.—the most transmissible that has ever been detected. It’s called XBB.1.5, in reference to its status as a hybrid of two prior strains of Omicron, BA.2.10.1 and BA.2.75. It’s also called “Kraken.”

    Not by everyone, though. The nickname Kraken was ginned up by an informal group of scientists on Twitter and has caught on at some—but only some—major news outlets. As one evolutionary virologist told The Atlantic earlier this week, the name—at first glance, a reference to a folkloric sea monster—“seems obviously intended to scare the shit out of people” and serves no substantive purpose for communicating science.

    Yes, Kraken is klickbait. It’s arbitrary, unofficial, and untethered to specific facts of evolution or epidemiology—a desperate play to get attention. And mazel tov for that. We should all rejoice at this stupid name’s arrival. Long live the Kraken! May XBB.1.5 sink into the sea.

    Since Omicron spread around the world in the fall of 2021, we’ve been subject to a stultifying slew of jargon from the health authorities: Miniature waves of new infections keep lapping at our shores, while the names of the Omicron subvariants that produce them slop together in a cryptic muck: XBB.1.5 has overtaken BA.5 in recent weeks, and also BF.7, as well as BQ.1 and BQ.1.1; in China, BA.5.2 is quickly spreading too. One might ask, without a shred of undue panic, how worried we should be—but the naming scheme itself precludes an answer. You don’t even need to ask, it says. You’ll never fully understand.

    This isn’t subtext; it’s explicit. A spokesperson for the World Health Organization told my colleague Jacob Stern that people should be grateful for the arcane pronouncements of our leading international consortia. “The public doesn’t need to distinguish between these Omicron subvariants in order to better understand their risk or the measures they need to take to protect themselves,” he said. “If there is a new variant that requires public communication and discourse, it would be designated a new variant of concern and assigned a new label.” In other words: None of what we’re seeing now is bad enough to merit much attention. You don’t need to make any brand-new precautions, so we don’t need to talk about it.

    The public may not need to draw distinctions. But do those distinctions really need to be obscured? A different set of names, one that isn’t precision-engineered to harpoon people’s interest, wouldn’t have to fool us into feeling false alarm. It’s not as though our habit of assigning common names to storms leads to widespread panic starting every summer. When Hurricane Earl appeared last September, no one rushed into a bunker just because they knew what it was called. Then Ian came a few weeks later, and millions evacuated.

    Granted, Kraken sounds a bit more ominous than Earl. (Of all the labels that could be given to the latest version of a deadly virus, it’s not the best.) But the name is more befuddling than terrifying: a nitwitted reference, somehow, to ferocity, absurdity, and conspiratorial delusion all at once. Even so, a silly name still has the virtue of being a name, while a string of numbers and letters is just an entry in a database. Kraken doesn’t care if you’re afraid of COVID, and it doesn’t mind if you’re indifferent. It only wishes to be understood.

    Isn’t that important? A proper name eases conversation (wherever that might lead), and makes it possible to talk about what matters (and what doesn’t). Just try telling the public that Hurricane Earl will be no big deal but Ian is a mortal threat, if instead of “Earl” and “Ian” you had to say “BA.2.12.1” and “B.1.1.529.” The committee that names our storms is chasing clouds instead of clout; it knows that branding efforts make it easier for everyone to stay informed. We might have done the same for SARS-CoV-2, and handed out simple, easy-to-remember names for all the leading Omicron subvariants. (Through 2021, we used Greek letters to describe each major variant.) If Kraken seems alarmist now, that’s because we’re living in a different, dumber timeline, where public legibility has been forbidden. Why give this subvariant a name, the global health officials ask, when it isn’t really that much worse than any other? But that’s a problem of their own creation. If Kraken seems too gaudy, that’s because every other recent name has been too drab.

    Having useful, catchy names doesn’t mean avoiding all abstraction. Florida residents were glad to know, last fall, which hurricanes were Category 2 and which were Category 5; and it may be just as useful to remind yourself that Kraken is not now, of its own accord, a “variant of concern,” let alone a “variant of high consequence.” Our trust in those distinctions is a product of their formality: A special group of experts has decided which public threats are the most important. The Kraken name, if it continues to spread, could undermine this useful sense of deference—and leave us in an awkward free-for-all where anyone could give a name to any variant at any time.

    For the moment, though, our only recourse is to the numbing nomenclature that is now in place, and to the creaking bureaucracy that delivers it. Any other name for XBB.1.5—any better one than Kraken—would have to come from the WHO, an organization that recently spent five months rebranding monkeypox as “mpox” and that has warned that disease names like “paralytic shellfish poisoning” are unduly stigmatizing to shellfish. Kraken has the crucial benefit of being right in front of us. It’s a stupid name, but it’s a name—and names are good.

    Daniel Engber

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