Kraken to Stop Accepting ACH Withdrawals & Deposits
The automated clearing house (ACH) via Silvergate deposit and withdrawal process needs to be revised for Kraken, a primary crypto facilitator for purchasing and selling cryptocurrencies. According to rumors, Kraken notified its users that starting March 27th, it will no longer handle Automated Clearing House (ACH) withdrawals and payments.
Users of the exchange have received an email advising them of the change. According to a statement made by Kraken, the company will stop offering Automated Clearing House Silvergate withdrawals and Plaid deposits.
The exchange promised its subscribers that none of its other services would be affected. However, Kraken has urged users to check MVB Bank Inc for Fedwire withdrawals, deposits, or other immediate buy possibilities to find alternate funding sources.
The exchange team is striving to reinstate ACH funding quickly. With a daily trading volume above $1 billion, Kraken is the 3rd largest cryptocurrency exchange in the world right now, claims CoinMarketCap.
In addition, Kraken consolidated the Silvergate Exchange Network (SEN) in 2019 and can now accept withdrawals and deposits in US dollars through Silvergate. Kraken, however, is one of many companies that halted ACH transfers and withdrawals through Silvergate.
The SEC Accuses Justin Sun of Manipulating the Cryptocurrency Sector
The US Securities and Exchange Commission (SEC) is prosecuting Justin Sun, the creator of Tron, an OpenChain blockchain platform, for suspected manipulation of prices or stocks. Additionally, the SEC has brought civil lawsuits against celebrities, notably Lindsay Lohan, for using their social media platforms to advertise Sun’s cryptocurrency assets, BitTorrent Token (BTT) and Tron (TRX).
The Chinese businessman has allegedly been charged by the SEC with participating in deceptive trading methods, coordinating the unlicenced sale and offer of securities backed by crypto assets, and illegally advertising the securities.
The SEC deemed the celebrity endorsements to be round-trip trading, in which they were compensated with Sun’s crypto holdings. The celebrities involved received payments to promote BTT and TRX but failed to disclose the sums. Nevertheless, they were getting paid, leading the public to believe they had a disinterested interest in the assets.
Sun is accused by the SEC of manipulating TRX wash trading to mislead investors and maintain TRX’s value stable. However, except for Soulja boy and Austin Mahone, the SEC also disclosed that most of the accused public figures settled the allegations against them for more than $400,000 without acknowledging or disputing the SEC’s findings.
Round-trip Trading (Wash Trading)
Round-trip trading, also known as wash trading, is the dishonest trading practice whereby a person or organization artificially increases the volume of trade of cryptocurrencies by purchasing and trading them themselves without any thought of profiting from it. This technique is frequently used to trick traders into believing that a particular crypto has a greater need than it is, enhancing its apparent worth and allure.
Wash trading gives the appearance of active trading and high demand by concurrently placing orders to purchase and sell. Because a single entity typically carries out wash trading, its trading volume looks more significant than the factual representation.
Round-trip trading seriously compromises the credibility of the trading platform and is illicit and unethical in many places. Moreover, it is against numerous securities regulations and rules, and anyone who partakes in it risks facing severe consequences such as fines.
Investors ought to be looking for indications of unusual trading behavior, such as colossal trading volume but barely any price action or recurrent purchase and sale requests coming from a single source, in hopes of safeguarding themselves against round-trip trading. Investors should avoid this fraudulent conduct by exercising thorough research and keeping up with market developments and rules.