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Kraken Expands Its Team With Five New High Level Hires

Crypto exchange Kraken is making a group of new high level appointments, expanding its team by five members.

United States-based cryptocurrency exchange Kraken is expanding its team with new high level hires, according to the company’s blog post published on March 7.

In the post, Kraken announced five new appointments to its team. The new appointments will see Matt Mason as Chief Marketing Officer, Steve Hunt as Vice-President of Engineering, Nelson Minier as Head of OTC Sales and Trading, Bob Zagotta as Head of Business Operations and Strategy, and Mary Beth Buchanan as General Counsel.

Prior to joining Kraken, Mason was employed by Sony Pictures as Studio Head at a secretive innovation lab focused on game mechanics. Mason also served as head of marketing and Chief Content Officer at BitTorrent Inc., and has experience in the music and advertising industries.

Hunt has an over 20 years experience in the leading of engineering teams in the construction of algorithmic trading networks across major global financial markets at such companies as Jump Trading and Goldman Sachs. Minier has also a 20 year experience in managing trading desks at such firms as Credit Suisse, JPMorgan Chase, Citibank, and others.

Zagotta, meanwhile, has experience in developing and launching new businesses. He is joining Kraken from CME Group where he served as Senior Managing Director of Strategy and Execution. Buchanan’s legal career spans over 30 years, having worked at such organizations as Bryan Cave LLP, the United Nations and the U.S. Department of Justice.

Last month, Kraken acquired United Kingdom-based cryptocurrency exchange and futures provider Crypto Facilities, which is fully regulated by the U.K.’s Financial Conduct Authority, giving Kraken a major foothold in the European market.

Following the acquisition, trading volumes on Crypto Facilities significantly increased. Sui Chung, head of cryptocurrency pricing products at Crypto Facilities, told Cointelegraph that the company’s average daily trading volume was around $7 million per day in January. However, following the acquisition announcement, it increased to $32 million per day in February, reaching up to $110 million one day that month.

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Crypto Futures Provider Volumes Increase 500 Percent After Acquisition by Kraken

U.K. futures provider Crypto Facilities’ trading volumes increased over 500 percent after being acquired by U.S. crypto exchange Kraken.

United Kingdom-based crypto exchange and futures provider Crypto Facilities has significantly increased its trading volumes after being acquired by crypto exchange Kraken, according to the information shared with Cointelegraph Tuesday, Mar. 5.

Cointelegraph spoke to Sui Chung, head of cryptocurrency pricing products at Crypto Facilities, according to whom the platform’s trading volumes have increased more than 500 percent.

Chung said that company’s average daily trading volume was around $7 million per day in January. However, following the acquisition announcement, it has increased to $32 million per day in February, reaching up to $110 million one day that month.

Chung linked the boost to a strong latent demand for crypto futures from the Kraken customer base, with the number of daily users steadily growing throughout the month. He confirmed that Crypto Facilities’ trading volume reached almost $1 billion during the month of February. He further explained that Crypto Facilities can offer services to Kraken users that are compliant with Anti-Money Laundering (AML) and Know Your Customer (KYC) policies.

Kraken bought Crypto Facilities for in a “nine-figure deal” on Feb. 4. As Cointelegraph reported following the matter, Crypto Facilities is fully regulated by the U.K.’s Financial Conduct Authority, giving Kraken a major foothold in the European market.

Earlier this week Goldman Sachs-backed cryptocurrency finance firm Circle bought SeedInvest, a crowdfunding platform and registered operator of a broker-dealer. The deal that was initially announced in October was concluded after approval by the United States Financial Industry Regulatory Authority (FINRA).

In January, Bakkt, the digital assets platform backed by the New York Stock Exchange, acquired certain assets in futures merchant Rosenthal Collins Group. The company obtained regulatory approval by the U.S. Commodity Futures Trading Commission for the launch of regulated trading in crypto markets.

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QuadrigaCX Reportedly Stored ETH on Kraken, Bitfinex and Poloniex, Research Finds

QuadrigaCX probably stored a significant quantity of Ethereum in other cryptocurrency exchanges, the evidence shows.

Cryptocurrency exchange QuadrigaCX probably stored a significant quantity of Ethereum (ETH) in other crypto exchanges, according to new evidence. This claim was made in a report published by crypto research and consulting platform ZeroNonCense on Feb. 28, which obtained corroborating information from Kraken CEO Jesse Powell and MyCrypto CEO Taylor Monahan.

More precisely, the author of the report reportedly “believes that there is a very strong possibility” that nearly 650,000 ETH belonging to QuadrigaCX were stored on the Kraken, Bitfinex and Poloniex crypto exchanges during QuadrigaCX’s operations. The report claims that the fact that QuadrigaCX had accounts on all those exchanges is established and proven, and that at the time they were sent, the funds were worth over $100 million.

As Cointelegraph reported in February, following the sudden death of its founder Gerry Cotten, cryptocurrency exchange QuadrigaCX was reportedly missing CA$190 million dollars ($145 million) in digital assets.

ZeroNonCense explains that — given the affidavit of the founder’s widow Jennifer Robertson that neither she nor other individuals involved with the exchange knew where Cotten stored the crypto assets — it is possible that they were not aware of these storage practices.

According to the report, Robertson also claimed in the affidavit that Cotten may have stored some of QuadigaCX’s funds on other exchanges. A report by Big Four audit firm Ernst & Young, which claimed that the exchange’s cold wallets have been empty and unused since April 2018, could be explained by the possibility that the assets are instead stored on those exchanges, ZeroNonCense hints.

The report concludes that if QuadrigaCX’s funds are still on the aforementioned exchanges, their retrieval should be trivial and could allow the platform to regain solvency and resume its operations.

As Cointelegraph reported at the beginning of February, ZeroNonCense previously released a report claiming that QuadrigaCX never had the $190 million in Bitcoin (BTC) it supposedly lost access to when its CEO unexpectedly died.

Also in February, news broke that Canadian banks have shown hesitation concerning the management of insolvent cryptocurrency exchange QuadrigaCX’s assets because of money laundering concerns.

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Kraken Offers $100,000 Reward for Tips Leading To the Recovery of QuadrigaCX’s Lost Funds

The mystery surrounding the events that led to the loss of $190 Million in cryptocurrencies at the QuadrigaCX has led to multiple theories as to what might have happened at the exchange. Just days ago the CEO of Coinbase, Brian Armstrong, shared what his team thought had happened at the exchange.

At the core of Coinbase’s explanation of events, was that a June 2017 bug at QuadrigaCX was the beginning of all their woes. The multi-million bug triggered a sequence of actions by the management at QuadrigaCX that resulted in them attempting to trade the exchange out of the financial ‘hole’ caused by the bug. What the team at QuadrigaCX did not anticipate, is the now famous crypto bear market that added more problems and had them operating at a fraction of what was initially in their cold storage. With the untimely death of their CEO, management then allowed the firm to cut losses and declare that the funds were lost.

Kraken Offers $100,000 in Fiat for any Tips

With the $190 Million in crypto still unrecovered, Kraken has now announced that it will be issuing a $100,000 reward in fiat for any information that will lead to the discovery of the missing digital assets. The team at the exchange made the announcement via the following tweet.

The official announcement by Kraken goes on to explain that since 2014, they have have been devoting significant resources to assist in the ongoing investigations to recover funds from the hack that crippled Mt. Gox. They explained that such events impact the entire industry and the team at Kraken wants to help as much as possible.

It is with this spirit of assisting the crypto community and improving the trading ecosystem that the exchange wants to help with the situation at QuadrigaCX.

Kraken wants to bring awareness and attention to this case, in hopes that we can help discover some or all of the missing client funds…

Do you know anyone who may know something that can help law enforcement locate the funds?

If so, let us know and we’ll pass your tips on to law enforcement. Kraken is giving up to $100,000 USD (fiat or crypto) as a reward for the tip(s) that best lead to the discovery of the missing $190 million US dollars.

Valuable tips to Kraken can be submitted via this online form.

What are your thoughts on Kraken offering a $100,000 reward on information leading to the discovery of the $190 Million in lost funds at QuadrigaCX? What do you think happened at the Canadian exchange? Please let us know in the comment section below. 

[Feature image of Kraken’s CEO courtesy of Kraken.com]

Disclaimer: This article is not meant to give financial advice. Any opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you

The post Kraken Offers $100,000 Reward for Tips Leading To the Recovery of QuadrigaCX’s Lost Funds appeared first on Ethereum World News.

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Crypto Exchange Kraken Offers $100,000 Reward for QuadrigaCX’s Missing Funds

Crypto exchange Kraken is offering $100,000 as a reward for info that leads to the discovery of QuadrigaCX’s missing assets.

Cryptocurrency exchange Kraken has posted a $100,000 reward for the discovery of the major Canadian crypto exchange QuadrigaCX’s missing funds. Kraken announced the offer in a blog post on Feb. 28.

QuadrigaCX has faced financial difficulty following the sudden death of its founder Gerry Cotten in December last year. Since then, Quadriga has not been able to access its cold wallets where it kept most of the assets, because Cotten was apparently solely responsible for the wallets and corresponding keys.

Quadriga purportedly only has CA$375,000 ($286,000) in cash, while it owes CA$260 million ($198,435,000) to its users. Facing insolvency, the exchange has sought creditor protection in Canadian court.

Now, Kraken is offering up to $100,000 in either fiat or digital currency as a reward for tips that could lead to the discovery of the missing assets. Kraken notes in the announcement that it may end the reward program at any point in time.

“All leads collected by Kraken will be provided to the FBI [Federal Bureau of Investigaion], RCMP [Royal Canadian Mounted Police] or other law enforcement authorities, who have an active interest in this case,” the statement concludes.

As previously reported, Cotten might have stored the exchange’s private keys on paper in a safety deposit box. In an interview on the “True Bromance Podcast” in February 2014, Cotten explained that the best way to keep private keys is to print them off and store them offline in a safety deposit box. Cotten then said:

“Essentially we [QuadrigaCX] put a bunch of paper wallets into the safety deposit box, remember the addresses of them. So we just send money to them, we don’t need to go back to the bank every time we want to put money into it. We just send money from our Bitcoin app directly to those paper wallets, and keep it safe that way.”

In mid February, a post by Redditor dekoze indicated five addresses allegedly associated with Quadriga, noting that the number is just a fraction of the total number of associated wallets. Transactions sent to the addresses roughly equal the amount of BTC Quadriga previously reportedly sent to locked cold wallets by mistake.

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Kraken Expands its Margin Trading to Include XRP and Bitcoin Cash (BCH)

As 2018 comes to an end, the crypto exchange of Kraken has launched margin trading for Bitcoin Cash (BCH) and XRP on its platform. This expansion brings the total of digital assets with margin trading to eight. The other six digital assets include Bitcoin (XBT), Ethereum (ETH), Ethereum Classic (ETC), Augur (REP), Monero (XMR) and Tether (USDT).

XRP and BCH Leverages

The team at Kraken went on to specify the following leverage amounts for each new trading pairs.

Bitcoin Cash
BCH/XBT – 2x
BCH/USD – 2x, 3x
BCH/EUR – 2x, 3x

XRP
XRP/XBT – 2x, 3x
XRP/USD – 2x, 3x, 4x, 5x
XRP/EUR – 2x, 3x, 4x, 5x

Borrow Limits

With respect to borrow limits, Kraken provided the following tiers depending on the verification level of the user account.

Bitcoin Cash
Tier 1: 1 BCH
Tier 2: 5 BCH
Tier 3: 50 BCH
Tier 4: 500 BCH

XRP
Tier 1: 5,000 XRP
Tier 2: 25,000 XRP
Tier 3: 250,000 XRP
Tier 4: 2,500,000 XRP

Margin Fees

The exchange will charge 0.02% as opening fee for margin trading and a similar percentage as rollover fee per 4 hours.

What Exactly is Margin Trading and Leverage? 

Margin trading is the practice of using borrowed funds from an exchange or broker to trade a preferred asset in the markets which forms the collateral for the loan from the broker. Margin refers to the amount of funds the trader must put up from his or her own resources. Leverage is the ability to use the margin amount to control a bigger trade. The amount of leverage (as seen above) is determined by the tier level of account verification.

In the case of Kraken, the collateral held or margin currency, does not have to match the margin pair the trader plans to trade since the leverage is placed on the value of the entire trade. Traders can hold the following as collateral currencies on Kraken.

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • EURO
  • US Dollar (USD)
  • Canadian Dollar (CAD)
  • Japanese Yen (JPY)

Risks of Margin Trading

As much as there is potential to make massive profits, margin trading can also lead to greater losses. Also, if the losses are large enough, the trader’s margin positions can be forcibly closed (liquidated) by the exchange to protect the funds borrowed to open the trading position.

What are your thoughts on Kraken expanding its margin trading to include XRP and Bitcoin Cash (BCH)? Please let us know in the comment section below. 

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

The post Kraken Expands its Margin Trading to Include XRP and Bitcoin Cash (BCH) appeared first on Ethereum World News.

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Reports: Crypto Exchange Kraken to Plan Private Offering After ‘$4 Billion’ Valuation

Kraken is said to be gauging interest from select investors for a minimum $100,000 investment per head.

United States cryptocurrency exchange Kraken is considering a private offering to high net worth investors, Finance Magnates reported Dec. 12, quoting emails sent by the company.

Kraken, which is currently the subject of a lawsuit over its support of the competing forks of altcoin Bitcoin Cash (BCH), has reportedly valued its shares at $4 billion.

According to Finance Magnates, executives are now offering select major clients to whom the email was sent a chance to acquire further equity, subject to a minimum investment of $100,000.

“The transaction process will be done by a 3rd party service, who will run accredited investor checks, facilitate the execution of transaction documents, and the funding of your investment,” the email reportedly states.

Those involved have until Dec. 16 to signal their interest, and will undergo vetting for eligibility prior to participating, Finance Magnates added.

Kraken had not responded to a request for comment by Cointelegraph at press time.

Last month, fellow exchange Coinbase informally ruled out holding an Initial Public Offering (IPO) after it was valued at $8 billion.

Kraken has sought to upend ongoing regulatory demands in the U.S. in recent months, being one of just four exchanges to reject a request for information from New York authorities in September as part of their crypto exchange inquiry.

The current Bitcoin Cash lawsuit focuses on alleged collusion to manipulate control of the altcoin and “centralize its network” following the contentious hard fork on Nov. 15.

The fallout from the event continues, with rival factions laying blame on each other for various problems. Bitcoin.com CEO Roger Ver and Bitmain co-founder Jihan Wu are also named in the lawsuit.