Cryptocurrencies To Watch

Tag: Crypto Exchange

  • FTX Bankruptcy Plan Gets Approved By U.S. Court

    FTX Bankruptcy Plan Gets Approved By U.S. Court

    A United States bankruptcy court in Wilmington, Delaware, has approved FTX’s plan to repay 98% of customers and creditors within 60 days.

    According to a press release, FTX will reimburse its customers with at least 118% of the account values they held as of November 2022, when the company filed for bankruptcy. The repayment is subject to know-your-customer (KYC) and other distribution requirements.

    FTX to Repay Creditors

    The collapsed exchange estimated that the total value of assets recovered, converted into cash, and ready for distribution will range between $14.7 billion and $16.5 billion.

    The outcome marked a win for creditors, made possible by recovering cash and crypto that had been lost amid the company’s collapse. The firm secured additional funds by selling various assets, including its stakes in tech firms such as the artificial intelligence startup Anthropic.

    Commenting on the latest announcement, John J. Ray III, CEO and Chief Restructuring Officer of FTX, said:

    “The Court’s confirmation of our Plan is a significant milestone on our pathway to distributing cash to customers and creditors. Today’s achievement is only possible because of the experience and tireless work of the team of professionals supporting this case, who have recovered billions of dollars by rebuilding FTX’s books from the ground up and marshaling assets from around the globe.”

    Ray added that agreements are being finalized with specialized agents to help ensure customer recoveries are handled safely and efficiently.

    FTX’s Dramatic Fall

    FTX, led by its founder and former CEO Sam Bankman-Fried, had positioned itself as one of the leading platforms in the sector. However, in November 2022, revelations of financial mismanagement and allegations of fraud led to a liquidity crisis, causing the exchange to halt operations and subsequently file for bankruptcy.

    Since then, the court-managed bankruptcy proceedings have included various stakeholders, such as creditors, institutional investors, and former FTX customers, striving to recover their funds.

    Bankman-Fried was found guilty of two counts of wire fraud, two counts of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit commodities fraud, and one count of conspiracy to commit money laundering.

  • Non-Custodial Crypto Wallet Phantom Adds Base Network Support

    Non-Custodial Crypto Wallet Phantom Adds Base Network Support

    Phantom, a non-custodial crypto wallet, has announced its support for Base network, an Ethereum layer-2 blockchain backed by Coinbase. The integration is now available to over three million customers who have updated their wallet apps and extensions.

    Why Phantom Supports Base

    The Base network has recently achieved a significant milestone of over two million daily active addresses. This shows its rapidly expanding ecosystem and increasing adoption among developers and users.

    To further enhance its user experience and attract Base users, the Phantom team added the L2 network to its list of supported networks. According to the announcement, Base Network support on the non-custodial wallet is currently a beta feature, and users can choose whether or not to use it.

    What This Means for Users

    The layer-2 integration will allow users to send and receive token transfers on the Base network with Phantom effortlessly. The team claims users will also be able to purchase assets like USDC and ETH using credit cards, Apple Pay, or Coinbase.

    Phantom users who have opted for Base beta can also explore the layer-2 ecosystem and seamlessly interact with their favorite decentralized apps (dApps). The wallet’s development team also noted that users can trade crypto across the Coinbase-backed network.

    The Phantom team also assured Base users that security remains a top priority. It further mentioned other features that can be enjoyed, including Ledger support, automatic spam detection, and transaction simulation.

    Base Network is not the First

    Since its launch in 2021, Phantom has remained focused on the Solana blockchain until April 2023, when it first integrated two other networks: Ethereum and Polygon. This move was spurred by the team’s desire for users to interact with the three largest ecosystem blockchains without moving from one wallet app to another.

    Eight months later, Phantom expanded its capabilities by integrating the Bitcoin blockchain, enabling users to engage with Ordinals and BRC20 tokens amidst growing demand for Bitcoin-focused digital tokens. The team acknowledged that Solana, Ethereum, or Web3 would not exist without Bitcoin.

    With its latest integration of the Base network, the multi-chain wallet now supports five blockchains.

  • Bitget Pledges Full Compensation Following Token’s Sharp 50% Decrease

    Bitget Pledges Full Compensation Following Token’s Sharp 50% Decrease

    Seychelles-based crypto exchange Bitget has promised to fully compensate users impacted by an unexpected 53.5% price drop in its native token, BGB. According to data from the platform’s price chart, the crypto’s value plummeted from $1.14 to $0.53 within a brief six-minute window.

    The unexpected plunge in BGB’s value left users speculating about what caused it, especially those negatively affected by it. Incidents like this are often the result of internal and external factors, such as liquidity issues, manipulation, large-volume sell orders, regulatory changes, and exchange-related events.

    Bitget Pledges Compensation

    Hours after the incident, Bitget issued a statement via its official X (formerly Twitter) post, attributing the unexpected price plunge to market conditions. The exchange assured users that the native token’s price had stabilized.

    Bitget apologized for the incident and pledged to compensate affected users. The exchange assured its community that a detailed plan would be released within 24 hours, and reimbursement would be completed within 72 hours.

    Following the announcement, the exchange CEO, Gracy Chen, stated that the incident is still under investigation and there are no issues with the platform. The executive claims Bitget’s asset reserve exceeds 176%, and the exchange has the second-largest protection fund globally.

    Bitget’s financial strength has been seen in past reports. Last month, the crypto exchange injected $30 million into The Open Network (TON) blockchain in collaboration with the Web3 venture capital Foresight Ventures to foster Web3 adoption on the layer-1 network.

    Meanwhile, the exchange has not revealed the total number of affected users or details regarding its compensation plan. However, affected users now look forward to being reimbursed.

    At press time, the BGB token was trading at $1.06, a 100% increase from its day low of $0.53.

    Not the First

    On January 23, crypto exchange OKX’s native token, OKB, experienced a sudden 50% drop in three minutes due to abnormal price fluctuations. The token’s price plummeted from $50 to $25 before stabilizing at around $48.

    The volatility led to automatic liquidations of numerous margined positions. Like Bitget’s response, the OKX team developed a compensation plan for affected users.

  • Robinhood Crypto Launches Crypto Transfers in Europe

    Robinhood Crypto Launches Crypto Transfers in Europe

    Robinhood Crypto, the crypto-focused arm of the American financial services company Robinhood, has extended its crypto services by introducing cryptocurrency transfers for its European-based customers. The move comes in response to users’ and investors’ demand for the ability to transact with their crypto deposits more flexibly.

    Robinhood Hits Europe With Crypto Transfer Feature

    Robinhood Crypto announced via a Tuesday press release that crypto transfers are now available in Europe for 24 crypto assets, including BTC, ETH, SOL, USDC, and other selected cryptocurrencies.

    With the latest developments, users in various countries across the continent can now deposit, withdraw, and transfer approved crypto assets directly from the Robinhood mobile app, giving them more flexibility and control over their crypto deposits.

    Commenting on the latest initiative, Johann Kerbrat, VP and GM of Robinhood Crypto, said:

    “With the launch of crypto transfers in Europe, we’re making self-custody and entering DeFi simpler and more accessible for our customers. Support for deposits and withdrawals gives customers more control over their crypto while ensuring they have the same safe, low-cost, and reliable experience they expect from Robinhood.”

    To celebrate the latest move, all European Robinhood Crypto customers will receive a 1% match on all their crypto deposits for a limited time starting from the launch date, which will be paid out in their deposited crypto assets.

    Robinhood Crypto in Europe

    In addition to the just-launched crypto transfer feature, Robinhood has previously offered its European-based users a wide range of crypto services. The firm claims to protect users’ crypto asset deposits by storing funds in cold wallets and provides crime insurance for any security breach.

    Moreover, Robinhood acquired U.K.-based crypto exchange Bitstamp in June for $200 million, seeing it as a significant step towards extending its presence in the European financial market and offering broader crypto services to customers.

    Back home, Robinhood is facing regulatory challenges. American regulators have threatened legal action against the fintech firm for alleged violations of laws involving its crypto trading services. However, this did not hinder the company from expanding its crypto services, as Robinhood recorded a 224% increase in its trading to reach $36 billion in Q1 2024.

  • Kraken Acquires Crypto Broker Coin Meester to Expand EU Reach

    Kraken Acquires Crypto Broker Coin Meester to Expand EU Reach

    American crypto exchange Kraken has announced its successful acquisition of Coin Meester (BCM), a Dutch crypto broker. The company noted that this move will extend its presence to the Netherlands market and, by extension, Europe.

    Why Target Europe?

    Kraken noted that the European market comprises many small, separate companies, making it hard for them to compete. As costs rise and competition increases, these companies will likely merge or be bought out. The exchange plans to take advantage of this situation by using its global presence and products to become a more significant player in the European market.

    Notably, the exchange has been operating in Europe over the past two years. It offers services like buying, selling, and storing crypto in five European countries: Germany, Spain, Italy, Belgium, and Ireland. Its acquisition of BCM has expanded its services to three more countries: France, the Netherlands, and Poland.

    This expansion automatically legalizes the company’s operations in France and Poland since the newly acquired broker is registered as a Virtual Asset Service Provider (VASP) in these countries.

    The exchange claims to follow the new rules called Markets in Crypto-Assets Regulation (MiCA), making it easier for people in these countries to use crypto. Kraken believes this recent move puts the company in a great position to succeed amidst Europe’s dynamic crypto regulations.

    What This Means for BCM Users

    The announcement stated that Kraken has strengthened its core product offering and expanded its product suite, which aligns with its strategy to become the bridge to the most exciting areas of crypto. Its clients now benefit from the Kraken Pro trading interface for advanced traders and a new consumer web user experience.

    Kraken boasts that BCM users will not be excluded from these services as they will soon see a significant upgrade. It explained that customers will access over 200 digital assets, benefit from market-leading liquidity, and enjoy superior security. Additionally, the firm promises to give these users round-the-clock support in their local language and improve their trading experience.

    Meanwhile, Kraken’s latest acquisition comes months after it lost $3 million to a security breach.

  • Hamster Kombat Adds Bitget to Exchanges List for Free HMSTR Claim

    Hamster Kombat Adds Bitget to Exchanges List for Free HMSTR Claim

    As the Telegram-based mini-game Hamster Kombat prepares for the debut of its native token, HMSTR, on September 26, it has begun securing listing on prominent crypto exchanges. A recent announcement shows that Bitget will join the cohort of exchanges to list HMSTR upon launch.

    Bitget Welcomes HMSTR

    The game’s developers announced they had secured the token listing on Bitget, making it the fourth exchange to adopt $HMSTR for trading. Following this update, the token was immediately listed for deposits in Bitget. The move is part of the team’s efforts to ensure a smooth and successful rollout to handle the anticipated influx of trading activity.

    According to data from CoinMarketCap, Bitget ranks 4th in the volume of derivatives trading. The exchange boasts advanced trading features and a vast user base. Hamster Kombat will tap into its trading volumes and liquidity by listing on the exchange’s spot market, amplifying the token’s visibility and trading activity.

    Bitget has confirmed HMSTR’s listing on its platform and created a pre-market where users can trade the token before the official listing date.

    Other Major Exchanges Support HMSTR Launch

    Binance, the world’s largest crypto exchange, has officially announced the listing of HMSTR on its platform. Additionally, Binance has invited the project to join its launchpool, enabling users to earn HMSTR tokens by staking their BNB (Binance Coin). This collaboration offers a unique opportunity for users to participate in the HMSTR token launch and earn rewards.

    Bybit, the second-largest crypto exchange by derivative trading volume, also announced that it will list the long-awaited HMSTR token on its platform on the launch date. This listing will allow users to trade HMSTR tokens on Bybit’s spot trading platform. The token will also be listed on OKX.

    Telegram mini-apps like Notcoin, Dogs, and TapSwap have been a hot trend in the crypto market this 2024. Due to the successful listing of some of these projects, it is unsurprising that users have flooded other projects like Hamster Kombat. This tap-to-earn game model has onboarded several users into the crypto market.

  • Kraken Replies SEC, Says Crypto Assets Are Not Securities

    Kraken Replies SEC, Says Crypto Assets Are Not Securities

    United States-based crypto exchange Kraken has replied to the U.S. Securities and Exchange Commission (SEC) charges that it offers crypto asset securities and investment contracts. The exchange stated that the SEC violated federal securities laws and that its securities classification is unclear. The agency has expressed regrets for misclassifying crypto assets as securities.

    Kraken Denies SEC Claims

    The SEC filed a case against Kraken, accusing it of violating securities regulations. The agency claims that the exchange offers its users unregistered securities in cryptocurrencies. It adds that Kraken raised billions from U.S. investors without registering to obtain the legal protections required for trading securities. After evaluating the case last month, a California judge ruled that the case would go to trial.

    Kraken has not pleaded guilty to the laid charges. Instead, it has responded to the SEC, claiming it is entirely innocent of the charges brought against it. The exchange states that it was never required to register before operating in the United States. It also maintains that the asset in question does not meet the legal definition of securities according to U.S. laws.

    The filing states, “Kraken admits that it has operated its trading platform since 2013 and that it has not registered with the SEC as a national securities exchange, a broker-dealer, or a clearing agency because it was never required to do so.” It added, “Kraken denies that the term “crypto asset securities” fairly or accurately describes the assets identified by that term and denies that crypto assets “that form the basis of transactions on Kraken are investment contracts, or are themselves securities.”

    Additionally, Kraken claims that the SEC has no authority to regulate its platform. It also added that since the SEC did not clarify its obligations under the law, the exchange lacked fair notice that its conduct was prohibited.

    SEC Admits to Misclassification of Crypto Assets

    The SEC has accused and attacked crypto firms for offering securities to customers in many cases. Therefore, Many in the crypto ecosystem have criticized the agency for opposing crypto adoption in the U.S.

    In an amended complaint, the SEC clarified that it does not classify cryptocurrencies as securities. Instead, it considers the agreements, contracts, and expectations related to crypto promotion as securities.

  • eToro Settles with SEC, Halts Trading Activity For Most Crypto Assets

    eToro Settles with SEC, Halts Trading Activity For Most Crypto Assets

    Popular social trading platform eToro has reached a $1.5 million settlement with the United States Securities and Exchange Commission (SEC). Under the agreement, the company will cease offering trading services for most crypto assets to U.S. customers.

    The SEC noted that since 2020, eToro has functioned as a broker and clearing agency by enabling U.S. customers to trade crypto assets classified as securities through its online trading platform. Still, it failed to meet the registration requirements under federal securities laws.

    The $1.5 million penalty signifies eToro’s agreement to adhere to federal securities laws as it maintains its U.S. operations, according to the announcement.

    eToro Limits Crypto Assets Available for Trading

    eToro, without admitting or denying the SEC’s findings, will liquidate any crypto assets classified as securities that cannot be transferred to customers, returning the proceeds to them accordingly.

    Under the settlement terms, eToro agreed to restrict the crypto assets available for trading in the U.S. to a limited selection and to comply with federal securities laws moving forward. 

    The trading platform noted that its U.S. customers could only trade Bitcoin, Bitcoin Cash, and Ether. eToro further stated that affected users will need to sell all other crypto assets within 180 days, starting September 12.

    “By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework. This resolution not only enhances investor protection but also offers a pathway for other crypto intermediaries,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.

    The SEC’s latest move follows a long line-up of regulatory clampdowns on crypto-focused entities. A recent report confirmed that the financial agency has imposed 11 fines worth $4.68 billion on crypto firms and individuals this year alone. The infamous blockchain project Terraform Labs and its founder, Do Kwon, received the biggest civil penalty, worth about $4.5 billion.