News linked to both this project and an event.
Odaily News Rapid7, a cybersecurity firm, has disclosed a crypto phishing campaign named Operation Asterix that targets approximately 885,000 phone numbers across multiple countries, redirecting victims to fraudulent wallet service websites. A total of 5,576 phone numbers have been matched with Binance user accounts and placed on the attack queue.The attackers steal seed phrases through fake apps impersonating Ledger, Trezor, and Exodus, while also contacting victims via fraudulent customer support emails and phone calls. Rapid7 also found that among over 316,000 phone numbers in Germany, 43,066 were matched with crypto trading accounts, representing a hit rate of approximately 13.6%.The related attacks also include a bulk phone number verification tool targeting Kraken accounts, and the investigation revealed that AI tools are being widely used in phishing operations. According to data from blockchain security firm Hacken, phishing attacks and social engineering scams caused $306 million in losses in the first quarter of this year, accounting for the majority of the $482 million total losses in the crypto industry. (Cointelegraph)
Odaily News: During a meeting at the White House with executives from crypto and financial firms, U.S. President Donald Trump urged Congress to pass a "fair version" of the Clarity Act, stating that market structure legislation is the next step in his digital assets policy.The meeting was attended by Commodity Futures Trading Commission (CFTC) Chairman Michael Selig, Securities and Exchange Commission (SEC) Chairman Paul Atkins, White House crypto advisor Patrick Witt, as well as executives from Coinbase, Ripple, Robinhood, and Kraken.The Clarity Act would establish federal rules for digital assets and clarify the regulatory jurisdictions of the SEC and CFTC. The bill is expected to return to the Senate in September, where Republicans will still need support from about six Democratic senators to reach the 60-vote threshold. (Decrypt)
Crypto exchange Kraken launches trading of over 7,000 US stocks for European Economic Area users, tradable in the same regulated account as tokenized stocks xStocks.
According to The Block, Kraken has officially launched US stock trading services for eligible users in all member states of the European Economic Area (EEA). It is reported that the service was previously quietly launched in Germany, the Netherlands, and France, and is now officially fully open to the entire European Economic Area. Kraken stated that it is currently the only crypto-native platform capable of providing European Economic Area users with trading of both spot US stocks and their tokenized versions within the same regulated account.
据 Cointelegraph 报道，比特币政策研究所（BPI）联合 Anchorage Digital、BitGo、Bitwise、Blockstream、Kraken、Ledger、MARA、Trezor 等多家加密机构，发布公开信敦促各大前沿 AI 实验室为比特币及开源软件开发者建立或扩展可信访问计划。 信中指出，Bitcoin Core 等开源维护者目前缺乏对 AI 实验室网络安全程序的访问渠道，被迫依赖能力较弱的开源模型，而比特币网络当前保护着逾 1 万亿美元资产，任何开源基础设施漏洞均可能危及用户毕生积蓄。BPI 同时披露，已收到多份报告显示包括潜在境外势力在内的复杂攻击者正借助先进 AI 能力持续发动攻击。
According to Cointelegraph, Coinkite, the manufacturer of Coldcard hardware wallets, disclosed that its devices have contained a random number generator (RNG) vulnerability persisting for up to five years since March 2021. The vulnerability stemmed from a firmware upgrade that mistakenly routed wallet seed generation to a less secure MicroPython pseudo-random number generator (PRNG), rather than the originally designed true random number generator (TRNG). Since code reviews only verified the existence of TRNG code without confirming whether it was actually invoked, the vulnerability remained undetected for a long period. To date, over 4,500 addresses have been compromised, with nearly $90 million worth of Bitcoin stolen. Kraken Chief Security Officer Nick Percoco stated that this incident should serve as a "wake-up call" for the hardware wallet industry, calling for the introduction of independent third-party testing mechanisms to mandate verification of whether the entropy sources actually invoked by production firmware are certified. Coinkite has suspended all device shipments and destroyed affected inventory after confirming the vulnerability, and stated it will cooperate with law enforcement agencies across multiple countries to trace the responsible parties.
据 CoinDesk 报道，Robinhood 英国子公司已于 7 月 31 日被列入英国金融行为监管局（FCA）注册加密资产公司名单，意味着其符合监管机构在反洗钱（AML）方面的要求。该注册体系自 2020 年生效以来，已有超 50 家公司获批，包括 Ripple、Kraken 及 BlackRock、BNY 等传统金融巨头。 此次获批正值英国更全面的加密监管框架即将启动之际，新框架的授权申请将于 9 月底开放，次年 2 月底截止，完整监管制度将于 10 月正式生效。已在现行体系下完成注册的公司，意味着为后续申请提前完成了大量准备工作。
: Crypto exchange Kraken has opened subscription for Jersey Mike's planned IPO to retail investors. Eligible U.S. users can apply to subscribe to book-entry shares at the IPO price, while users in over 110 countries and regions can apply for tokenized stock JMKEx. JMKEx is backed 1:1 by the underlying stock and custodied with regulated institutions. Allocation results are determined by the IPO underwriters, and a successful allocation is not guaranteed; after the IPO completion, JMKEx will be tradable on Kraken and participating xStocks Alliance platforms 24 hours a day, 5 days a week. Kraken stated that the tokenized stock can be transferred between platforms participating in the xStocks Alliance, on-chained, and accessed via compatible decentralized finance applications. Jersey Mike's is a U.S. sandwich chain brand with over 3,300 stores. Its expected IPO price is between $21 and $25 per share, and it will be listed on the New York Stock Exchange under the ticker JMKE.
According to CoinDesk, Kraken's parent company Payward announced it will expand its tokenized stock platform xStocks to markets outside the United States, planning to partner with investment infrastructure provider GTN to bring listed stocks from Hong Kong, the UK, Europe, and South Korea on-chain, with further expansion to other asset classes subject to regulatory approval. Currently, xStocks supports over 500 tokenized securities, with cumulative trading volume exceeding $35 billion and nearly 200,000 holders, but the product is not currently open to US investors.
crypto bank Augustus announced the completion of a $180 million funding round, bringing the company's valuation to $1 billion. The company aims to build a 24/7 financial infrastructure that connects traditional payment systems with stablecoin networks. The round was led by Tiger Global Management, with participation from investors including Hummingbird, QED, and the founding teams of Nubank, Ramp, Circle, and Deel.Augustus stated that as stablecoins gradually transform the global financial system, the traditional Correspondent Banking model is facing efficiency bottlenecks. The company aims to establish a federally chartered clearing bank for fintech companies and financial institutions, replacing traditional cross-border payment infrastructure.Unlike stablecoin issuers, Augustus does not plan to issue its own stablecoin. Instead, it aims to provide underlying banking infrastructure, enabling financial institutions to freely transfer funds between traditional payment networks and blockchain networks. Currently, Augustus offers euro clearing services through its regulated Finnish entity, processing tens of billions of euros in transactions annually. Its clients include international financial institutions, fintech companies, banks, and crypto firms, including crypto exchange Kraken. (CoinDesk)
the Midnight Foundation has provided an update on the handling of the cross-chain bridge attack event involving Wanchain Cardano and BNB. Multiple exchanges including KuCoin, Kraken, Binance, Bybit, OKX, Gate, and MEXC have coordinated risk control actions, temporarily freezing the involved accounts and associated addresses, adding the hacker wallet to a blacklist, and pausing NIGHT token deposits and withdrawals as needed to curb the transfer and cashing out of stolen assets.The Foundation specifically noted that this security incident is an isolated incident related to a third-party cross-chain bridge, and the Midnight mainnet and native NIGHT assets have not been affected. The project team continues to collaborate with major exchanges and ecosystem partners to advance traceability investigations, reminding the community to rely on official disclosures for information and to be cautious of misinformation.
Kraken Institutional has announced a partnership with on-chain yield platform Upshift, allowing eligible institutional clients to earn yields on idle Bitcoin, Ethereum, stablecoins, and other crypto assets directly within Kraken's compliant custody framework. Upshift will build dedicated customized vaults for each client, designed according to their investment strategies, risk parameters, liquidity requirements, and asset portfolios. Assets will be allocated to these non-custodial vaults and subsequently deployed to selected on-chain contracts, with clients' segregated Kraken custody accounts receiving receipt tokens.
As the tokenization of capital markets intensifies, the Securities Transfer Association (STA) recently submitted a comment letter to the U.S. Securities and Exchange Commission (SEC), warning that stock tokens issued by third-party entities could undermine market integrity. The association is calling on regulators to prioritize tokenized securities authorized by listed companies in future rulemaking.The STA represents numerous Wall Street transfer agents, whose members argue that genuine tokenized stocks should be formally authorized by the issuing company and recorded on the official shareholder register, rather than consisting of "wrapped" token products created by independent platforms.The association points out that third-party stock tokens could confuse investors regarding their actual holdings and expose them to platform credit, custody, and operational risks, without establishing a direct legal relationship with the listed company. Therefore, any innovation exemptions, pilot programs, or permanent regulatory frameworks for tokenized securities should be prioritized for the issuer-supported model. The STA also urges the SEC to reform the existing Direct Registration System (DRS), arguing that the current U.S. securities depository system struggles to meet the real-time transfer and settlement demands of on-chain securities. It recommends that regulators collaborate with the Depository Trust & Clearing Corporation (DTCC) to optimize the digital securities infrastructure.Currently, the global tokenized stock market, valued at approximately $2 billion, is predominantly led by the third-party model, including products launched by Ondo Finance and Kraken, while institutions like Securitize and Figure adopt the issuer-authorized model. (CoinDesk)
U.S. prosecutors have recently filed criminal charges against a man currently serving a prison sentence, accusing him of transferring and laundering approximately $290,000 in crypto assets that had been ordered confiscated by a court.According to a statement from the U.S. Department of Justice (DOJ), Bulgarian national Rossen Iossifov is charged with, in January 2024, conspiring with others to withdraw and transfer a batch of cryptocurrency assets from his Kraken-registered account that had previously been ordered forfeited by a federal court. Prosecutors allege that these funds were subsequently funneled through cryptocurrency mixing services and trading platforms in an attempt to conceal the source and destination of the funds before the U.S. government could complete the seizure.The U.S. Attorney's Office for the Eastern District of Kentucky stated that these crypto assets were held in a Kraken account under Iossifov's name and had been restricted by judicial authorities during the related investigation. The DOJ has not yet disclosed how the account was accessed or whether the involved funds have been recovered.Iossifov was previously convicted of conspiracy to commit extortion and conspiracy to commit money laundering for his involvement in an online auction fraud ring. Prosecutors allege that his cryptocurrency exchange platform, RG Coins, helped the criminal network convert illicit proceeds into cryptocurrencies and cash, with the network defrauding at least 900 U.S. victims. Previous investigations showed that Iossifov processed nearly $5 million in crypto asset money laundering transactions in less than three years.A court had previously ordered Iossifov to pay over $2.6 million in restitution and to forfeit the related crypto assets. The new charges include obstruction of property seizure, aiding and abetting, and conspiracy to commit money laundering. If convicted, he could face a maximum of 25 years in prison.The U.S. Department of Justice emphasized that the indictment represents only charges and that Iossifov is presumed innocent until proven guilty in court. (Cointelegraph)
Kraken parent company Payward has asked the Delaware Court of Chancery to enter a final judgment against Mazars USA after an arbitrator ruled in its favor, awarding $22 million in damages. Kraken co-CEO Arjun Sethi stated that the case involves debanking, regulatory pressure, and the need for clear rules in the U.S. crypto market, and called on Congress to pass the CLARITY Act. (Bitcoin.com News).
cryptocurrency exchange Kraken is seeking to obtain a full banking license in Europe, with Lithuania as the key jurisdiction for its application. If approved, Kraken would become the first cryptocurrency exchange to receive a full European banking license. Reports indicate this move is part of its parent company Payward's global licensing strategy. Previously, Kraken Financial connected to the U.S. Federal Reserve's payment infrastructure in March this year, and Payward also obtained regulatory approval from the UAE's VARA in May.
Payward, the parent company of Kraken, has won its arbitration against former auditor Mazars USA, with the arbitrator ruling that Mazars must pay Payward $22 million. Payward is now seeking confirmation of the arbitration award and a final judgment from the Delaware Court of Chancery.The dispute originated during the peak of the so-called "Operation Choke Point 2.0" in 2022. Payward claimed that Mazars abruptly withdrew from a nearly completed audit of Kraken without finding any issues with the company. However, the move caused reputational damage to Kraken and forced the company to spend years and incur significant legal fees to clarify its position.Arjun Sethi, co-CEO of Payward, stated that audits are not a "favor" for crypto companies but rather critical infrastructure necessary for maintaining banking relationships, licenses, counterparty trust, and regulatory confidence. When an auditor withdraws without negative findings, it unfairly leaves a cloud of suspicion over the company."Operation Choke Point 2.0" is the crypto industry's term for regulatory pressure during the Biden administration, referring to the period after the FTX collapse when US regulators informally pressured banks to limit services to crypto companies. Sethi noted that the US FDIC sent at least 25 letters to 24 banks, requesting them to pause or avoid expanding crypto-related business. This ruling is also seen as a legal countermeasure by the crypto industry against such regulatory pressure.
Kraken has begun allowing eligible users to use select tokenized stocks and ETFs as collateral for futures and margin trading, enabling them to open leveraged positions without selling their existing holdings.The initial offering includes 10 tokenized stocks and ETFs, featuring Apple, Nvidia, Tesla, Strategy, SPDR S&P 500 ETF, and Invesco QQQ Trust. This feature is currently only available to eligible users outside the United States.Kraken has also set collateral limits for different assets, with a maximum collateral value of $1 million for large-cap ETFs, $250,000 for most individual stocks, and $100,000 for tokenized gold and Circle stock. The platform stated that collateral limits and haircut rates will be reviewed periodically and may be adjusted based on market conditions. (Cointelegraph)
Kraken's parent company Payward has filed a request with the U.S. federal court, seeking evidence disclosure from multiple U.S. financial institutions related to crypto derivatives company PowerTrade and its co-founders. Kraken stated in the announcement that the requested evidence disclosure will help Payward identify additional assets that can be frozen, ensuring that relevant parties such as PowerTrade cannot continue to cause harm to other industry participants. (CoinDesk)
The House Financial Services Committee held a hearing on Wednesday to discuss the changing roles of banks and fintech companies, with a key focus being the "skinny master account" option under consideration by the Federal Reserve, which would allow certain crypto banks and fintech companies limited direct access to the Fed's payment system.A Federal Reserve master account allows financial institutions to directly use the Fed’s payment network and gain the most direct access to the U.S. dollar monetary system. Institutions without such an account typically rely on partner banks that hold master accounts to provide services. The so-called "skinny account" is a version with limited functionality, intended to provide restricted access for new types of financial institutions.Republican Representative Dan Meuser stated during the hearing that access to the Fed’s payment system is no small matter, and the core issue is which institutions should be permitted to directly use these critical payment rails. Traditional institutions like community banks worry that crypto and fintech companies are not subject to the same stringent regulations, and granting them direct access could pose safety and soundness risks.The crypto industry generally supports the proposal, arguing that direct access to the Fed’s payment system is long overdue, as it would help reduce reliance on intermediary banks and foster innovation. In May, former President Trump signed an executive order requiring the Federal Reserve to evaluate policies for opening central bank payment rails to fintech companies, including crypto firms.Previously, in March, the Kansas City Fed approved Kraken’s parent company, Payward, for a "limited purpose account," sparking discussions about the extent to which crypto and fintech companies should have direct access to Fed services. A representative from Anchorage Digital stated during the hearing that if the U.S. is to remain the global financial center, it must allow for innovative federal and state-level regulatory frameworks.