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5 Feb 2026, 13:17

Kraken releases December 2025 Proof of Reserves, continuing our commitment to trust through transparency

At Kraken, transparency isn’t a slogan – it’s a standard. Our latest Proof of Reserves (PoR) , attested as of December 31, 2025 , once again verifies that client assets held on our platform are backed 1:1 and beyond. The process covers major cryptoassets, including BTC, ETH, SOL, USDC, USDT, XRP and ADA . We don’t expect blind trust. We don’t need it. We offer cryptographic evidence. New to PoR? Learn how it works in our beginner’s guide . What our December 2025 report shows Our PoR captures a complete snapshot of client assets across all services – not just spot balances. It includes margin accounts, futures holdings and staked assets , offering a full-spectrum look at customer exposure as of December 31, 2025: A quick refresher – what is Proof of Reserves? Proof of Reserves is a cryptographic process that allows clients to verify — independently and privately — that their assets are included in a third-party accountancy firm’s snapshot of the platform’s liabilities. We use a Merkle tree to combine individual balances into a single cryptographic hash. Clients receive a personalized Merkle proof , which they can use to confirm inclusion without revealing personal details. The independent accountancy firm then confirms that Kraken’s onchain holdings exceed total client balances — effectively verifying full reserves without assumptions. Why Kraken’s PoR goes further While more exchanges are now offering “PoRs” in some form, not all of them offer the same level of rigor or transparency. Here’s what sets ours apart: 1. We account for liabilities, not just assets Some platforms show what they hold — but skip what they owe. We include total client liabilities in every PoR. Anything less isn’t a full proof of reserves. 2. User-level verification Every client can verify their own inclusion using our open-source Merkle verification tool. This isn’t just about trust – it’s about verification. 3. A decade of consistency We first pioneered PoR in 2014 — and we haven’t stopped. Kraken conducts PoR regularly and methodically , not just during news cycles. PoR is vital. It’s not about promises. It’s about proof – visible, cryptographic, third-party-verified proof. Kraken’s process is built to withstand scrutiny and empower users with information. What’s next – expanding scope We’re committed to publishing PoRs quarterly , alongside our financial disclosures, to ensure users have a regular window into platform solvency. We’re also actively working to expand the coverage of our PoRs to include more supported assets , giving a broader view of the reserves across our ecosystem. Since the beginning, Kraken has stood for accountability, independence and crypto-first values . We believe transparency should be an industry norm, not an afterthought. That’s why we’ll keep raising the bar. Ready to verify your account? Visit our Proof of Reserves portal . Sign in and self-verify balances The post Kraken releases December 2025 Proof of Reserves, continuing our commitment to trust through transparency appeared first on Kraken Blog .

5 Feb 2026, 13:06

Record $1M Lightning transfer tests Bitcoin payments for institutions

A $1 million Lightning transfer between SDM and Kraken was used to test whether Bitcoin’s main scaling layer could handle seven‑figure, institutional‑grade payments.

5 Feb 2026, 13:00

S House opens investigation into WLFI following reported $500M UAE investment

Congressional investigators have launched a formal probe into World Liberty Financial (WLFI), the cryptocurrency venture affiliated with President Donald Trump’s family, after reports that an Abu Dhabi–backed investment vehicle secretly acquired a major ownership stake in the firm. The United States House Select Committee on the CCP has launched a congressional inquiry into foreign sovereign capital on WLFI to determine whether the investment violated government policy on the export of advanced artificial intelligence technology. The investigation follows a Wall Street Journal report revealing a previously undisclosed agreement between WLFI and Aryam Investment 1, an entity tied to the United Arab Emirates. According to the WSJ, Aryam’s “Spy Sheikh” agreed to purchase a 49% stake in WLF for $500 million just days before Trump’s inauguration in January 2025. Did WLFI Emirati investors create a political overlap with US laws? Per documents cited in the WSJ report, the agreement was signed by the US president’s son, Eric Trump. Of the first $250 million installment, $187 million was supposedly directed to Trump family entities DT Marks DEFI LLC and DT Marks SC LLC. Another $31 million was routed to an entity said to belong to WLFI co-founders Zak Folkman and Chase Herro. The WSJ also cited a document showing that at least $31 million was set aside for entities affiliated with Steve Witkoff’s family, a WLFI co-founder who had recently been appointed US envoy to the Middle East. The backer behind Aryam Investment 1 is Sheikh Tahnoon bin Zayed Al Nahyan, a senior Abu Dhabi royal. Tahnoon is the brother of the UAE president and a national security adviser in charge of key sovereign wealth and technology investment vehicles, including AI-focused firm G42 and investment entity MGX. In its letter to WLFI, members of the select committee said Tahnoon’s G42 sought access to cutting-edge US semiconductors to improve the UAE’s AI capabilities. The Biden administration blocked those efforts due to concerns that the technology could be transferred onward to China. Lawmakers and Intelligence officials in the previous administration found that G42 had past relationships with Huawei and other Chinese companies, even though the firm insisted it had severed those ties. The Aryam agreement made the Emirati vehicle WLFI the largest shareholder and the only known outside investor. Two Aryam executives who also held senior roles at G42 joined WLF’s five-member board that included Eric Trump and Zach Witkoff, the son of Steve Witkoff. Public disclosures on WLFI’s website showed the Trump family’s equity stake dropped from 75% to 38% last year. The company did not publicly state if the reduced stake had a buyer or who the buyer was. The second half of Aryam’s $500 million commitment was due by July 15, 2025. The Journal reported it could not determine how those funds were distributed. Congress is now demanding a full accounting of where that money went, including the beneficial owners of any recipient entities. Binance ties and USD1 transactions spark document demands USD1, WLFI’s dollar-pegged stablecoin was used to settle a $2 billion investment by Emirati interests into crypto exchange Binance. Binance was founded in China by Changpeng Zhao, who was pardoned by Trump in October last year. The select committee on CCP competition wants to understand why USD1 was selected as the settlement asset for that transaction instead of more established financial channels. They have requested internal records from WLFI that explain who approved the stablecoin’s use, what fees or revenues it generated, and if the transaction created financial benefits for the Web3 company or its owners. Representative Ro Khanna, who is leading the inquiry, said he opened the investigation into “seemingly corrupt activities” and their impact on US policy toward China. The committee formally requested capitalization tables, profit distribution records, board appointment documents, and due diligence materials related to Aryam Investment 1.

5 Feb 2026, 12:59

Regulatory pressures drive demand for secure XMR to USDT Exchange in 2026

The opening weeks of 2026 have shown a period of intense downward momentum for the digital asset market. Geopolitical tensions in the Middle East continue to escalate while global trade policies undergo a dramatic shift under the current US administration. These factors ensure that the relationship between privacy-centric cryptocurrencies and stable liquidity remains a priority for investor strategy. Consequently, the XMR to USDT exchange in 2026 has become a focal point for this transition. Traders are seeking to balance the need for financial discretion with the necessity of price stability in an increasingly unpredictable macro environment. Following a turbulent final week of January, Bitcoin fluctuated violently and dropped as low as $74,500 following the announcement of new trade tariffs. This price action has intensified the demand for secure on-chain harbors. Tether (USDT) remains the primary destination for those moving out of volatile positions. However, the pathways to execute an XMR to USDT exchange in 2026 have become more complex due to a shifting regulatory and technical landscape. The 2026 market context: Volatility and the flight to safety The current market cycle is defined by a series of macroeconomic triggers. The recent exodus of over $1.1 billion from Bitcoin ETFs in late January 2026 signaled a cooling of institutional appetite for high-risk assets. This trend was driven largely by uncertainty surrounding newly announced U.S. tariff structures and naval deployments toward the Persian Gulf. This climate has fostered a dual-track market where different assets serve distinct purposes. Precious Metals and Defensive Assets: Gold and silver have seen record-breaking inflows. Gold briefly touched $5,600 per ounce as traditional investors hedge against currency devaluation. Stablecoin Dominance: Within the crypto ecosystem, USDT has solidified its role as a necessary tool for traders. Its market capitalization is expanding as it absorbs liquidity from both altcoins and privacy assets. The Liquidation Flush: On January 30 alone, the market witnessed a massive long squeeze that liquidated over 275,000 traders. This event underscored the danger of over-leveraged positions in a high-interest-rate environment. Monero (XMR) began the year with strong bullish momentum and challenged the $600 resistance level at one point. It has recently retraced to the $380 range. Analysts view this pullback as a tactical shift toward liquidity rather than a loss of interest in privacy. When markets face extreme fear, the priority for many holders shifts toward short-term value protection. This often results in a higher volume of users seeking an XMR to USDT exchange in 2026 . The changing face of privacy coin liquidity The primary challenge facing Monero holders in 2026 is the diminishing number of traditional on-ramps and off-ramps. Over the past year, global regulatory bodies have tightened their stance on Anonymity-Enhanced Cryptocurrencies. The European Union has implemented stricter data governance rules. Additionally, the continued stagnation of crypto legislation in the U.S. has forced many centralized exchanges to delist XMR. Other platforms have implemented mandatory identity verification protocols that many users feel negate the primary value of the coin. This regulatory friction has birthed a new era of decentralized and non-custodial exchange models. For many participants, the goal of an XMR to USDT exchange is to maintain the confidentiality of their holdings while gaining access to the stability of a dollar-pegged asset. Fragmented Liquidity: Major centralized platforms have faced increased pressure to limit privacy coin pairings. This leads to thinner order books and higher slippage for large trades. Rise of the Non-Custodial Model: Non-custodial platforms have filled a vital gap in the market. They allow users to swap assets without the traditional account-based hurdles. Integration of Services: In this environment, venues like GhostSwap have become a factual part of the ecosystem. These platforms provide direct wallet-to-wallet XMR to USDT exchange in 2026 for those who prioritize a streamlined process. Technical divergence: ERC-20 vs. TRC-20 USDT A critical factor for anyone performing an XMR to USDT exchange in 2026 is the selection of the underlying blockchain network for the receiving stablecoin. The market has effectively split between two dominant networks. Each network serves a different sector of the digital economy. USDT (ERC-20) on Ethereum: This remains the standard for institutional users and those deeply embedded in the Decentralized Finance sector. Mainnet gas fees on Ethereum often spike during market crashes despite improvements in Layer 2 scaling. This makes it less ideal for smaller or high-frequency swaps. USDT (TRC-20) on Tron: This network has become the high-speed rail of 2026. Transaction costs typically stay under $1 and the network provides near-instant settlement. TRC-20 is the preferred choice for traders moving funds between exchanges or paying for digital services. The divergence between these two networks has necessitated that exchange platforms provide clear support for both. Observers note that the ability to toggle between these networks within a single conversion flow is a key driver for users. This feature is supported by platforms like GhostSwap and helps privacy-conscious users manage their exits into the stablecoin market during periods of high volatility. Geopolitical pressures and the privacy paradox The paradox of 2026 is that the demand for privacy has never been higher while the legal room for it has never been smaller. Global financial systems are integrating more deeply with blockchain technology every day. Recent updates from the Federal Reserve have sent signals to Wall Street of a potentially more hawkish monetary policy. This further strengthens the U.S. dollar and puts pressure on risk assets. For the individual investor, every interaction with a centralized entity represents a potential point of data leakage. This has reinforced a privacy-first mindset among veteran crypto users. Performing an XMR to USDT exchange in 2026 is often viewed as a defensive maneuver. It allows a user to park funds in a stable asset while maintaining the anonymity of the original source of wealth. Privacy is a normal expectation in the traditional financial world. No one expects their neighbors to see their bank balance. The crypto market in 2026 is simply trying to replicate that standard of normalcy through technical workarounds as the legal pathways narrow. The roadmap ahead for Monero The underlying technology of Monero continues to adapt despite the current price consolidation and regulatory headwinds. Several key upgrades are slated for later in 2026 that aim to further harden the network. FCMP++ (Full-Chain Membership Proofs): This upgrade is expected to significantly increase the anonymity set for every transaction. It will make it mathematically more difficult for chain analysis firms to determine the origin of funds. Seraphis Implementation: This is a modernization of the Monero address structure. It promises better scalability and faster wallet syncing to address long-standing user experience complaints. Censorship Resistance: More governments are exploring Central Bank Digital Currencies. The value of a truly decentralized and private currency remains a compelling counter-narrative for a segment of the global population. The market for XMR serves as a barometer for the health of the broader crypto industry. It highlights the tension between the original vision of private money and the modern reality of a regulated financial ecosystem. As the market navigates the fallout from geopolitical volatility, the role of non-custodial exchange remains vital. Traders who were caught in the late January liquidations learned that volatility can be unforgiving. For those who remain, the ability to move between the privacy of XMR and the stability of USDT is a core component of digital risk management. Factual and direct tools like GhostSwap facilitate this process in a complex environment. The post Regulatory pressures drive demand for secure XMR to USDT Exchange in 2026 appeared first on Invezz

5 Feb 2026, 12:55

Crypto Futures Liquidated: $113 Million Evaporates in Volatile Hour as Traders Face Brutal Squeeze

BitcoinWorld Crypto Futures Liquidated: $113 Million Evaporates in Volatile Hour as Traders Face Brutal Squeeze Global cryptocurrency markets experienced a sharp, concentrated period of deleveraging on Tuesday, March 18, 2025, as over $113 million in futures contracts were liquidated within a single turbulent hour. This intense activity, primarily concentrated on major exchanges like Binance, Bybit, and OKX, contributed to a staggering 24-hour liquidation total exceeding $1.06 billion, signaling significant stress among leveraged traders. Market analysts immediately scrutinized the cascade, which often follows rapid price movements that trigger automatic margin calls. Crypto Futures Liquidated: Anatomy of a One-Hour Squeeze The mechanics behind a futures liquidation event are systematic and unforgiving. Traders using leverage borrow funds to amplify their position size. Consequently, exchanges require them to maintain a minimum margin level. When prices move sharply against these leveraged positions, the collateral value drops. If it falls below the maintenance margin, the exchange automatically closes the position to prevent further loss. This process is a liquidation. The recent $113 million wave suggests a large number of traders held similar directional bets that suddenly reversed. Data from analytics platforms like Coinglass typically breaks these figures down by exchange and asset. For instance, Bitcoin (BTC) and Ethereum (ETH) futures usually account for the lion’s share of such activity. Furthermore, the data distinguishes between long and short liquidations. A predominance of long position liquidations indicates a rapid price drop forcing out bullish traders. Conversely, a surge in short liquidations points to a swift price rally. This hourly event provides a real-time snapshot of extreme market sentiment and risk management failures. Understanding the Ripple Effects of Mass Liquidations A concentrated liquidation event does not occur in a vacuum. It often creates a self-reinforcing feedback loop known as a liquidation cascade . As large positions get forcibly closed, they create additional sell (or buy) pressure in the spot market. This pressure can drive prices further in the direction that triggered the initial liquidations. This, in turn, can push other leveraged positions closer to their liquidation thresholds, potentially causing a domino effect. The $1.06 billion 24-hour total underscores how a one-hour spike can be part of a broader, day-long market correction or surge. The impact extends beyond individual trader losses. High liquidation volumes increase market volatility and can temporarily distort liquidity. Market makers and arbitrageurs must adjust their strategies rapidly. For the broader ecosystem, such events serve as a stark reminder of the risks associated with high leverage. They also test the resilience of exchange infrastructure, as systems must handle a flood of automatic orders without delay or failure. Historical parallels can be drawn to events like the March 2020 crash or the LUNA collapse, though the scale and context differ. Expert Analysis: Risk Management in Volatile Conditions Seasoned traders and risk analysts emphasize several key lessons from these events. First, position sizing is critical; using excessive leverage is the primary culprit behind liquidation. Second, employing stop-loss orders, while not a guarantee, can help manage risk proactively rather than relying on an exchange’s liquidation engine. Third, understanding funding rates is vital. Persistently high funding rates in perpetual futures contracts can signal overcrowded trades, often preceding a squeeze. Analysts reviewing the $113 million hour likely examined these rates and open interest data for warning signs. Furthermore, the structure of the crypto derivatives market itself plays a role. Unlike traditional markets, crypto features 24/7 trading and often allows for much higher leverage ratios—sometimes up to 100x or more on certain platforms. This inherent design makes the market more prone to these violent flushing events. Regulatory observers often cite such volatility and trader losses as arguments for stricter leverage caps or enhanced risk disclosures on derivatives products offered to retail participants. Historical Context and Market Resilience To fully grasp the significance of a $113 million hourly liquidation, one must view it within historical trends. While the figure is substantial, the crypto market has weathered far larger single events. For example, during the major downturn of 2022, single-day liquidation volumes routinely surpassed $2 billion. The relative scale compared to total market capitalization is also a key metric. As the total crypto market cap has grown, the systemic impact of similar-sized liquidation events has arguably diminished, though the pain for affected traders remains acute. The market’s response in the hours following such a flush is telling. Often, a large liquidation event can create a local price bottom or top , as it effectively “cleans out” overleveraged positions. This can reduce selling pressure and allow the market to find a new equilibrium. On-chain data, such as exchange net flows and the behavior of long-term holders, becomes crucial in determining whether the move is a healthy correction or the start of a deeper trend reversal. The recovery, or lack thereof, after the $1.06 billion 24-hour period offers critical insight into underlying market strength. Conclusion The event where $113 million in crypto futures were liquidated in one hour serves as a powerful case study in market dynamics and risk. It highlights the volatile and often punitive nature of leveraged trading in digital asset markets. While such liquidations are a standard mechanism for managing counterparty risk on exchanges, their concentration reveals moments of extreme collective positioning and sentiment. For traders, these events reinforce the paramount importance of disciplined risk management. For the market, they represent periodic stress tests that underscore both its maturity and its enduring wildness. Understanding the mechanics and implications of futures liquidations remains essential for anyone participating in the modern cryptocurrency ecosystem. FAQs Q1: What does “futures liquidated” mean in cryptocurrency? A1: It means an exchange has forcibly closed a leveraged futures position because the trader’s collateral fell below the required minimum (margin). This happens automatically to prevent the trader’s losses from exceeding their initial deposit and becoming a debt to the exchange. Q2: What typically causes a wave of liquidations like the $113 million event? A2: A rapid, sharp price movement in either direction is the primary trigger. If many traders are using high leverage to bet on one direction (e.g., long) and the price suddenly moves against them (e.g., drops 5-10%), it can push a large volume of positions below their maintenance margin all at once. Q3: Are futures liquidations bad for the overall crypto market? A3: They have mixed effects. In the short term, they increase volatility and can force prices further in the direction of the move. However, they can also remove overleveraged, unstable positions from the market, which may help establish a more solid price foundation afterward. Q4: How can traders avoid being liquidated? A4: Key strategies include using lower leverage, depositing more collateral (over-collateralizing), setting prudent stop-loss orders, and constantly monitoring positions—especially during periods of high volatility or around major news events. Q5: Where can I see real-time data on futures liquidations? A5: Analytics websites like Coinglass, Bybt, and CoinPaprika provide real-time and historical data on liquidation volumes, broken down by exchange, cryptocurrency, and position type (long vs. short). Most major exchanges also provide this data on their own platforms. This post Crypto Futures Liquidated: $113 Million Evaporates in Volatile Hour as Traders Face Brutal Squeeze first appeared on BitcoinWorld .

5 Feb 2026, 12:30

South Korea launches investigation into alleged ZKsync price manipulation

ZKsync token surged by 970% on Upbit exchange, sparking concerns over possible price manipulation. The volatility has triggered an investigation by South Korean financial regulators, who believe the spike was a result of suspicious trading activity. South Korean financial regulators have opened investigations into the Upbit exchange after the ZKsync token surged by 970% in three hours before dropping back to its initial price. Regulators believe the spike was the result of price manipulation and said they are investigating the matter. ZKsync token spikes by 970% on Upbit, prompting regulatory action ZKsync was trading at $0.023 on Sunday morning, South Korean time, as the Upbit exchange prepared for scheduled system maintenance. At 11:30 AM, just before maintenance began, the price rose significantly to $0.24 over the next three hours, only to drop back to around $0.023 by 6:30 PM the same day, after the maintenance period ended. A spokesperson for the Financial Security Service’s Virtual Asset Investigation Bureau said that the financial watchdog had noticed the peculiar price behavior ZKsync experienced that day and was looking into the matter, after which things “may quickly transition to a formal investigation after determining the severity of the case.” Experts told a local South Korean newspaper that traders on the exchange set up a “buy wall” just before the maintenance period began, as part of a coordinated effort to artificially spike demand for the coin and push its price higher. According to data from the Upbit exchange, trading volumes in ZKsync surged by over 4,200% at the time of the incident. In comparison, the token’s trading volume on Coinbase rose by a more modest 150% on the same day, while prices increased by just under 40%. The volume on Binance rose by 180%, while the crypto asset’s price moved by just 38-42%. Source: Upbit Chart showing ZKsync’s price fluctuation on February 1. According to legal experts, the action falls under the Virtual Asset User Protection Act, which came into effect in July 2024. Jin Hyeon-su, managing partner at Decent Law Firm, said that “a large number of buy orders being concentrated in a short period of time, followed by a release of the volume afterwards” likely results in “price manipulation, collusive trading, and unfair trading.” The action is illegal under South Korean regulations, and perpetrators face over a year in prison and fines totaling up to five times the realized profits if found guilty. The court can also impose additional fines on the manipulators if it finds that other traders have suffered financial losses as a result of the price manipulation. Bithumb CEO sentenced to three years in prison for price manipulation on the exchange A previous Cryptopolitan report dated February 4 noted that the Criminal Division of the Seoul Southern District Court, presided by Judge Lee-hee, sentenced Lee Jong-hwan, the CEO of Bithumb, a South Korean cryptocurrency company, to up to 3 years in prison for manipulating virtual asset prices on the exchange. On top of the sentencing, Lee Jong-hwan was fined 500 million won (more than $340,000), and an additional 846.56 million won (more than $550,000) for breaking the Virtual Asset User Protection. The court also found Kang Min-cheol, a former employee of the Bithumb exchange, guilty and sentenced him to two years in prison with a three-year suspension. The news comes after South Korea’s authorities rolled out artificial intelligence technology to detect market scams and suspicious transactions in real time. The Financial Supervisory Service (FSS) highlighted the growing sophistication used by criminals, including the use of Application Programming Interfaces (APIs) to conduct high-frequency trading (HFT) that can manipulate prices in milliseconds. Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.