Weekly Recap: Here Is What Happened This Week In Crypto

Solana has experienced network problems once again

Solana is battling network outages in an effort to improve its blockchain performance. The new year has started with old problems for Solana, as it suffered a network outage for over 24 hours on February 25th due to a software update bug.

This is not an isolated incident, as in 2022 Solana experienced a total of seven network outages. Critics claim that the reason for this vulnerability is a design flaw in the blockchain.

Solana Labs co-founder Anatoly Yakovenko announced on Tuesday that his company will enhance its software upgrade process to ensure network dependability and uptime. He stated that delivering a fast, reliable, and scalable network to progress towards a better, decentralized web remains their top priority.

Serious accusations against Binance

Serious accusations have been made against Binance, the world’s largest cryptocurrency exchange, claiming that it has embezzled $1.8 billion of customer funds. Forbes has published an article alleging that the exchange engaged in “similar maneuvers to FTX.” When FTX, another cryptocurrency exchange, collapsed in November of last year, Binance presented itself as a white knight offering help to the struggling industry. The exchange launched an initiative to disclose its own reserves for greater transparency, established a billion-dollar reconstruction fund, and provided financial assistance to struggling crypto companies. Binance has repeatedly emphasized that its customers’ assets are fully covered.

SEC vs. crypto

In an interview with New York Magazine on February 23rd, the chief of the US Securities and Exchange Commission (SEC), Gary Gensler, stated that all cryptocurrencies except Bitcoin fall under the jurisdiction of the financial authority. Therefore, according to Gensler, all crypto tokens, with the exception of Bitcoin, should be treated as securities.

Gensler explained, “Fundamentally, these tokens are securities because there is a group in the middle, and the public expects profits based on the performance of that group.”

The downfall of Silvergate

Silvergate, the crypto bank, is increasingly facing financial troubles, with its stock experiencing a drop of over 40%. More and more actors in the crypto sector are distancing themselves from the bank, with Ledger X, a crypto derivatives platform, and trading platform Coinbase having already suspended payments with the company last Thursday. On Friday, Crypto.com also suspended US dollar transfers through Silvergate. A number of other major players such as Circle, Paxos, Galaxy, Gemini, Bitstamp, and CBOE have also halted their business dealings with the bank.

Former Celsius users are finally being able to get their funds back

Customers of Celsius who had their funds stored in the company’s custody program can now finally make withdrawals. The company informed its customers of this development on March 2nd. There are also increasing reports on social media confirming that assets have been released.

New informations surface about the assets of FTX & FTX US

According to a press release outlining a presentation filed in FTX.com’s Chapter 11 case on Thursday, the crypto exchange is facing a substantial asset shortfall. As per current spot prices, the wallets associated with FTX.com have been found to contain $2.2 billion worth of assets, out of which only $694 million comprise the most readily tradable “Category A Assets” like fiat, stablecoins, Bitcoin or Ether.