On Wednesday, bitcoin’s value ascended to the vicinity of ,000, during which time users of Coinbase and Robinhood reported disruptions in service. As of Feb. 28, 2024, Coinbase’s status page indicated the platform was suffering from “degraded performance,” while Robinhood’s clientele voiced their grievances to the platform’s support team. Technical Troubles Shadow Bitcoin’s Climb to […]
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Crypto Exchange Kraken Shares ‘Real Story’ of SEC Lawsuit — Claims SEC Seeks ‘Boundless Authority’ Over Commerce
Cryptocurrency exchange Kraken has shared what it called “the real story” of the lawsuit against it by the U.S. Securities and Exchange Commission (SEC). Kraken also explained why it is moving to dismiss the case. “Crypto innovators in the United States should not have to fear retaliation for their political speech. They should be free […]
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Kraken Starts Requiring Info on Self-Custody Crypto Wallet Ownership in the UK
Kraken, a U.S.-based cryptocurrency exchange, has started requiring additional information in the U.K. regarding transactions of self-custody wallets made to and from its accounts. Kraken sent an email to some of its U.K. customers, stating that if the information required was not provided, it could result in an account lock until the required data is […]
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Kraken Notifies XRP Holders Of Potential 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.
I always thought I would make money from my $XRP holdings, but not like this
PS. First I thought this was a scam email, but now I think it's real. pic.twitter.com/4jhLuUSqEt
— Yassin Mobarak
(@Dizer_YM) February 9, 2024
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.
As mentioned in the email you received, you have the option to either do nothing or exclude yourself. For more details, please visit the support article linked below.
Best,Kraken Support
— Kraken Support (@krakensupport) February 8, 2024
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.
SEC Identifies 16 Crypto Tokens as Securities in Kraken Lawsuit
The U.S. Securities and Exchange Commission (SEC) has identified 16 crypto tokens as securities in its lawsuit against cryptocurrency exchange Kraken. Some of the alleged crypto securities were the same as those highlighted in the SEC’s lawsuits against Coinbase and Binance. Kraken’s CEO stressed: “We strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position.”
SEC Labels 16 Crypto Tokens as Securities
In its lawsuit against crypto exchange Kraken filed on Monday, the U.S. Securities and Exchange Commission (SEC) named 16 crypto tokens as securities. The regulator’s complaint states:
Kraken currently makes available for trading crypto assets that have been the subject of prior SEC enforcement actions based upon their status as crypto asset securities, including crypto assets trading under the symbols ADA, AXS, ALGO, ATOM, CHZ, COTI, DASH, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, SAND, and SOL.
The regulator pointed out that some of the aforementioned crypto assets had been named in several previous legal cases, including those involving Coinbase, Binance, and Bittrex. SEC Chairman Gary Gensler has repeatedly said that he views all crypto tokens, except bitcoin, as securities. However, a recent court ruling found that XRP is “not necessarily a security on its face.”
In its lawsuit against Coinbase in June, the SEC stated that crypto assets like ICP, AXS, CHZ, FLOW, DASH, VGX, FIL, NEXO, NEAR, ADA, SAND, SOL, and MATIC meet the criteria of being investment contracts. In the same month, the securities regulator identified in a lawsuit against Binance that 12 crypto tokens are securities: BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI. In April, the SEC said DASH, ALGO, TKN, NGC, and OMG are unregistered securities in a lawsuit against Bittrex.
Responding to the SEC’s charges on Monday, Kraken CEO Dave Ripley emphasized on social media platform X: “We strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position.” Like Kraken, Coinbase has insisted that its platforms do not list crypto securities. In July, Coinbase’s chief legal officer, Paul Grewal, asserted that the SEC’s interpretation of “investment contract” violates the law.
After the SEC’s move against Kraken, U.S. Senator Cynthia Lummis (R-WY) called on Congress to “pass a regulatory framework to provide clear rules to the SEC on what is a security and what is a commodity.” She stressed on X: “The SEC cannot continue ruling by enforcement. Crypto asset companies have repeatedly tried to get guidance from the SEC only to be hit with enforcement actions, causing unnecessary harm to consumers.”
What do you think about the SEC stating that 16 crypto assets are securities in the Kraken lawsuit? Let us know in the comments section below.
SEC Sues Kraken: Crypto Exchange Plans to ‘Vigorously Defend’ Its Position in Court
The U.S. Securities and Exchange Commission (SEC) has sued cryptocurrency exchange Kraken for the second time this year, alleging that the crypto trading platform operates as an unregistered securities exchange, broker, dealer, and clearing agency. Kraken disagreed with the securities regulator’s claims, insisting: “We do not list securities, and plan to vigorously defend our position.”
SEC Sues Kraken Again
The U.S. Securities and Exchange Commission (SEC) announced Monday that it has charged “Payward Inc. and Payward Ventures Inc., together known as Kraken, with operating Kraken’s crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency.” This is the SEC’s second lawsuit against Kraken this year. The first was in February over the crypto exchange’s staking program, which Kraken agreed to pay million to settle.
In its lawsuit filed on Monday, the SEC alleged that since at least September 2018:
Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law.
Moreover, the SEC alleged that “Kraken’s business practices, deficient internal controls, and poor recordkeeping practices present a range of risks for its customers.” The securities regulator further claimed that “Kraken commingles its customers’ money with its own, including paying operational expenses directly from accounts that hold customer cash.” In addition, the watchdog has accused Kraken of listing crypto securities.
The SEC is seeking “injunctive relief, conduct-based injunctions, disgorgement of ill-gotten gains plus interest, and penalties.”
Kraken Intends to Fight Back
Following the SEC’s lawsuit announcement, Kraken issued a statement, stating: “We disagree, and intend to vigorously defend our position in court.” The exchange detailed:
The complaint against Kraken alleges no fraud, no market manipulation, no customer losses due to hacking or compromised security, and no breaches of fiduciary duty.
“It includes big dollar amounts but does not allege a single one of those dollars is missing or misused — no Ponzi scheme, no failure to maintain adequate reserves, and no failure to preserve the identity of client funds 1:1. Indeed, none of these things would be true,” the company emphasized.
Kraken CEO Dave Ripley posted on social media platform X: “We strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position. As we have seen before, the SEC argues that Kraken should ‘come in and register’ with the agency, when there is no clear path to registration.”
What do you think about the SEC suing Kraken again this year after the crypto exchange paid million to settle the previous lawsuit? Let us know in the comments section below.
Kraken to Expand Its Presence in Europe With Acquisition of Dutch Crypto Broker
Crypto exchange Kraken has unveiled its plan to acquire Dutch crypto broker Coin Meester B.V. (BCM). Kraken explained that the Netherlands is a key market in its European expansion plans. “We are committed to growing our business in compliance with European regulations,” the exchange emphasized, adding that it is “actively pursuing” registrations in several European markets.
Kraken to Acquire a Crypto Broker in the Netherlands
Cryptocurrency exchange Kraken announced on Thursday its “planned acquisition of Coin Meester B.V. (BCM) in the Netherlands.” Kraken explained that BCM, founded in 2017, is one of the Netherlands’ “oldest and most respected registered crypto brokers.” The company provides services to buy, sell, and stake crypto, including access to over 170 cryptocurrencies.
The proposed acquisition will enable Kraken to strengthen its presence in the Netherlands and allow BCM’s clients to benefit from Kraken’s product offering, liquidity, security standards, and 24/7/365 live client support, the announcement details.
Kraken CEO David Ripley commented: “The acquisition of BCM will give Kraken a sizable position in the Dutch market and will allow BCM’s clients to benefit from an even more robust product offering.” The executive added:
The Netherlands has one of the world’s most advanced economies, with a well established culture of innovation and a high level of crypto adoption. This makes it a key market for us in our European expansion plans.
“Our decision to accelerate European growth plans follows the European Commission’s establishment of Markets in Crypto-Assets (MiCA) regulatory framework, which allows industry players to confidently invest in the region and provide consumers access to more competitive products and services,” Kraken detailed.
The crypto exchange explained:
We are committed to growing our business in compliance with European regulations; in addition to our VASP [virtual asset service provider] licenses in Ireland, Italy and Spain, we are actively pursuing registrations in other European markets.
Kraken noted that the proposed acquisition is “subject to customary closing conditions, including obtaining the required regulatory approvals.”
What do you think about Kraken acquiring a Dutch crypto broker as part of its European expansion plan? Let us know in the comments section below.
US Crypto Exchange Kraken Wins ‘Milestone’ Regulatory Approvals in Europe
Cryptocurrency exchange Kraken announced new achievements in implementing its strategy to pursue expansion on the European market. The U.S. trading platform for digital assets said it has received regulatory nods from the monetary authorities of Ireland and Spain, two of the EU nations with relatively clear rules for the industry.
Another Major U.S. Crypto Exchange, Kraken, Strides On With European Expansion
Digital asset exchange Kraken has obtained authorization from the Central Bank of Ireland as an e-money institution (EMI) and has registered with the Bank of Spain as a virtual asset service provider (VASP). In a press release on Tuesday, the San Francisco-based company emphasized that the regulatory approvals highlight its commitment to growing its business in Europe.
With the EMI license, which has been granted to Kraken’s subsidiary in Ireland, the exchange will be able to partner with European banks in order to expand its euro fiat services for clients in the EU’s 27 member states as well as the countries in the European Economic Area (EEA), which form a key growth region for the American crypto firm.
Kraken further explained that the VASP registration with Spain’s central bank allows it to provide cryptocurrency exchange and custodial wallet services to residents of the country. The exchange has already received similar registrations in Ireland and Italy and considers these a “testament to its ongoing commitment to regulatory compliance.”
“Today’s announcement marks another important milestone in our European expansion strategy,” said Curtis Ting, Kraken’s vice president of global operations. He pointed out that the company is excited to become part of the local fintech sectors in the two countries and looks forward to continuing its European investments. Ting also stated:
We see a firm foundation for crypto in Europe, which has forward-looking regulation that enables us to grow with confidence. We are grateful for the constructive approach to regulating industry growth set by the Central Bank of Ireland and the Bank of Spain.
Kraken’s push to expand on the Old Continent, which is preparing to implement its new Markets in Crypto Assets (MiCA) legislation, is not an isolated effort among U.S. exchanges. Earlier in September, America’s leading crypto trading platform, Coinbase, indicated in a blog post that it intends to focus on growing in markets that have clear crypto regulations.
Coinbase provided as an example of the opposite the United States, where government agencies have taken the path of enforcing existing rules through courts. This week, Coinbase announced it has obtained a Spanish registration, too, and a report unveiled it has tried to buy FTX Europe for its derivatives business.
As one of the world’s longest-standing crypto platforms, Kraken highlighted its “robust security and excellent client service that spans more than a decade.” Curtis Ting emphasized that these features, coupled with Kraken’s leading position in liquidity and volume for euro-crypto pairs, “bring a compelling value proposition for future clients in Europe” and vowed that the exchange will continue to work to advance crypto adoption in the region.
Do you think other U.S. crypto companies will also seek to expand their business in Europe? Share your expectations in the comments section below.
Regulator Sues Crypto Exchange Kraken Provider in Australia
Australia’s securities regulator has initiated civil proceedings against Bit Trade Pty Ltd, an entity providing Kraken services to Australian users. According to the government agency, the company failed to comply with regulatory obligations meant to ensure proper consumer protection.
Australian Regulator Seeks to Prohibit Kraken Partner From Ongoing Conduct
The Australian Securities and Investments Commission (ASIC) has sued Bit Trade, which provides services from U.S. crypto exchange Kraken in Australia, Reuters reported quoting a statement by the regulator on Thursday.
ASIC alleges that Bit Trade failed to comply with applicable design and distribution (DDO) obligations for its margin trading product and that it continues to offer it despite being notified by the Commission of its concerns in June 2022.
The DDO obligations require financial firms to design products that meet the needs of consumers and distribute them in a targeted manner. ASIC claims that Bit Trade did not make a target market determination for the product before offering it to customers.
The margin trading product in question represents a credit facility as it provides customers credit to buy and sell certain crypto assets on Kraken, the securities regulator explained. ASIC noted that customers can receive an extension of credit of up to five times the value of the assets they use as collateral.
The regulatory body also detailed that at least 1,160 customers had used the margin trading product, incurring a total loss of about 12.95 million Australian dollars (.35 million) since the design and distribution began in October 2021.
ASIC is now seeking declarations, pecuniary penalties, and injunctions prohibiting Bit Trade’s ongoing conduct, the report revealed and quoted the Commission’s Deputy Chair Sarah Court as stating:
These proceedings should send a message to the crypto industry that products will continue to be scrutinized by ASIC to ensure they comply with regulatory obligations in order to protect consumers.
Other major exchanges that have had issues this year in Australia, which is yet to comprehensively regulate crypto trading, include . In May, amid a global regulatory crackdown, the biggest exchange for digital assets lost AUD deposit and withdrawal services through two domestic payment providers, Payid and Cuscal.
In July, ASIC canceled the financial services license of FTX Australia, a local entity owned by the failed Bahamas-headquartered cryptocurrency exchange FTX which filed for bankruptcy protection in the United States last November.
Meanwhile, Australia’s largest lender, Commonwealth Bank of Australia (CBA), announced its intention to restrict payments to crypto trading platforms. Its move was followed by another Big 4 Australian bank, National Australia Bank (NAB), which also blocked payments to “high-risk” exchanges.
Do you think Australian authorities will increase the regulatory pressure on crypto trading platforms? Share your thoughts on the subject in the comments section below.
Ethereum ICO Participant Moves $9.96 Million Of ETH To Kraken. Will He Sell?
An Ethereum initial coin offering (ICO) participant and one of the earliest supporters of the smart contract platform has moved 6,000 ETH worth .96 million to Kraken, a cryptocurrency exchange, recent data from Lookonchain on September 18 reveals.
The unidentified whale received 254,908 ETH when each traded for 40.31 during the crowdfunding in 2014. This amount is currently worth over 6 million at spot rates.
Ethereum Whale Transfers Over .96 Million To Kraken
The anonymous nature of public blockchains, including Ethereum, makes it harder to decipher the owner’s identity. Determining whether an entity or an individual controls the address is also more complex.
Whale transfers to a crypto exchange are usually considered bearish since the ramp provides an easier swapping option for token holders to cash out. Typically, crypto whales have the potential to impact the market due to the sheer size of their holdings.
Accordingly, their trading decisions can influence prices, increasing volatility. Therefore, the recent deposit to Kraken may suggest that the whale plans to sell, taking a profit.
On the brighter side, the whale could be moving their coins via an intermediary, in this case, Kraken, before transferring them to other platforms like Rocket Pool or Lido Finance for staking.
In the current proof-of-stake consensus algorithm used by Ethereum, whales can earn annual staking rewards if they lock at least 32 ETH. While the whale can set up a node and stake, liquidity staking providers like Rocket Pool allow users to stake coins and earn staking rewards using their infrastructure.
As of September 18, there are over 804,000 validators, that is, users who have locked at least 32 ETH operating an Ethereum full node. Cumulatively, over 25.7 million ETH have been locked.
ETH Prices Recovering
As of this writing, the transfer on September 18 is amid the broader recovery in the crypto market. Of note, Ethereum (ETH) prices are up roughly 6% from September lows. Overall, supporters are bullish, expecting more growth in the days ahead.
The pump also means bulls have reversed some of the losses of September 11, and the current formation may anchor the next leg up that could propel the coin above ,750, or August 29 highs, and later peel back sharp losses recorded on August 17.
From the candlestick arrangement in the daily chart, ETH remains under pressure, dropping 23% from 2023 highs of around ,140.
However, since bears didn’t reverse losses of the June to July leg up, buyers have a chance following the rejection of lower lows from around the 78.6% Fibonacci retracement level of the Q3 2023 trade range. Presently, the September and August 2023 lows remain critical support levels for ETH, with the retest of August 17 lows on September 11 causing concern for optimistic traders.