The Crypto Roundup: 10 June 2024

Latest price and news from the crypto space

Latest price from our hand picked list of digital assets

Prominent cryptocurrency exchange Kraken has recently completed the acquisition of TradeStation Crypto, the cryptocurrency-focused division of the online brokerage TradeStation. This move is strategically aimed at bolstering Kraken's regulatory stance and expanding its operations within the U.S. market.

Top stories in the Crypto Roundup today:

Kraken Expands U.S. Presence with TradeStation Crypto Acquisition
Crypto Trader Convicted in High-Profile Mango Markets Manipulation Case
DeFi Growth Explodes in Q1 2024: The Impact of Ethereum Liquid Restaking
CCData Nominated For Two Hedgeweek Awards

Kraken Expands U.S. Presence with TradeStation Crypto Acquisition

"The acquisition is a key part of our strategy to enhance our presence in the U.S. and opens up new growth avenues and product possibilities for Kraken," stated a spokesperson from Kraken in an email communication.

TradeStation Crypto, based in Florida, has successfully obtained money transmitter and other regulatory licenses across most U.S. states in recent years. However, the crypto brokerage faced a setback with the U.S. Securities and Exchange Commission over a lending service, culminating in a $3 million settlement. Following these challenges, TradeStation's parent company announced its decision to pull out of the cryptocurrency sector.

Notably, TradeStation Crypto was instrumental in realising Miami Mayor Francis X. Suarez's vision of transforming Miami into a cryptocurrency hub. In early 2022, the company sponsored the Miami Bull, an 11-foot, 3,000-pound statue unveiled by Mayor Suarez, symbolizing the city's crypto-friendly ambitions.

Kraken's expansion efforts are not limited to the U.S. In recent months, the exchange has also extended its reach into the European Union, acquiring the Netherlands-based cryptocurrency firm BCM and securing several virtual asset service provider licenses across Europe.

Crypto Trader Convicted in High-Profile Mango Markets Manipulation Case

Crypto trader Avraham Eisenberg was convicted on Thursday in a U.S. federal court for his role in manipulating the Solana-based decentralized finance (DeFi) platform Mango Markets, resulting in the theft of $110 million worth of cryptocurrency. Eisenberg was arrested in December 2022 in Puerto Rico and has remained in federal custody awaiting trial.

Following a week-long trial in Manhattan, Eisenberg was found guilty on all counts, including commodities fraud, commodities manipulation, and wire fraud. He now faces up to 20 years in prison, with sentencing yet to be determined by New York District Court Judge Arun Subramanian.

Mango Markets operates as a decentralized exchange (DEX) that is governed by a decentralized autonomous organization (DAO), utilizing its native MNGO token. The platform enables users to lend, borrow, swap, and leverage trade cryptocurrencies. According to prosecutors, Eisenberg executed a scheme in October 2022 where he artificially inflated the price of MNGO by trading large volumes between accounts he controlled. He then used the inflated token values as collateral to withdraw $110 million in various cryptocurrencies from Mango’s liquidity pools.

Shortly after the theft, Eisenberg offered to return $67 million of the stolen funds in exchange for keeping $43 million and receiving immunity from prosecution—a proposal the DAO rejected.

The defense argued that Eisenberg’s actions were legal and complied with the decentralized protocol's existing rules. However, the prosecution presented a case that Eisenberg’s actions were deliberately fraudulent, pointing to his premeditated manipulation of asset prices to extract funds under false pretences.

DeFi Growth Explodes in Q1 2024: The Impact of Ethereum Liquid Restaking

Q1 2024 has marked a significant resurgence in the decentralized finance (DeFi) sector. According to data from DefiLlama, the TVL in DeFi platforms surged from a low of $36 billion in Q4 2023 to a peak of almost $97 billion in the first three months of 2024. This upward trend continued, reaching a two-year high of $98 billion last week, indicating an 81% increase since the start of the year.

A report by QuickNode and Artemis noted that “staking, liquid staking, restaking, and liquid restaking have all been key drivers behind DeFi's recent rapid expansion" before adding that "this is why staking now accounts for a significant share of DeFi’s total value locked (TVL)."

One of the standout protocols in this boom has been Lido, which dominates the liquid staking ecosystem with a 62% market share. Lido’s success helped to push the liquid staking TVL to an all-time high of $63 billion on March 13. Another notable performer, EigenLayer, saw its TVL skyrocket by 990% during the same period, ending the quarter with $12 billion. EigenLayer has introduced the capability for ETH to be staked multiple times for additional yields, adding a new layer of utility and incentive in the DeFi space.

The significant rise in user activity, highlighted in the report as a 291% increase quarter-on-quarter, has sparked optimism for a potential second 'DeFi Summer.' However, the recent downturn in the broader crypto market has seen the DeFi TVL retract by 11% to $86.6 billion.

CCData Nominated For Two Hedgeweek Awards

We are delighted to announce that CCData has been nominated for two Hedgeweek Global Digital Asset Awards 2024:

Data and Research Solution of the Year
Index Provider of the Year

The Hedgeweek Global Digital Asset Awards are highly recognised within the industry, honouring outstanding achievements in fund performance and service provision. Our nominations this year build on our previous success, highlighting our team's continuous commitment to providing market-leading digital asset solutions.

We'd appreciate it if you could show your support by voting for CCData in both categories via the link below. The deadline for submissions is on the 19th of April 2024.

State of the Crypto by Top Tier Exchange Volume

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