The crypto community faced a minor setback when Kraken, a major cryptocurrency exchange, encountered issues with its crypto funding gateways leading to delays in deposits and withdrawals. However, Kraken responded promptly to the situation and took steps to investigate and fix the problem to restore full functionality to its withdrawal services.
Gateway Hiccups and Operational Delays
Users were notified of the delay in deposits and withdrawals by Kraken’s status page on June 6. The team worked diligently to fix the problem, but the exact cause of the issue was not immediately made public. The status page eventually returned to normalcy, ensuring that all systems were functional again.
The quick resolution offered relief to users who had to bear a temporary disruption in withdrawal services.
Turmoil in Crypto
The Kraken incident coincided with legal challenges faced by other major exchanges, including Coinbase and Binance. The U.S. Securities and Exchange Commission (SEC) issued legal action against both platforms. Coinbase, the largest U.S. cryptocurrency exchange, is allegedly operating without proper registration, raising concerns about its regulatory compliance.
The SEC’s lawsuit against Binance intensified the pressure on the world’s largest crypto exchange, accusing it of operating a “web of deception.” The crypto market experienced volatility, with Bitcoin prices falling to their lowest point in nearly three months. The global crypto market has also gone down by nearly 1% in the past 24 hours, with a value below its previously plateaued $1.2 trillion.
Kraken is embroiled in a battle with the IRS in the United States over the agency’s demands for customer information. The exchange has criticized the requests and referred them to as an “unjustified treasure hunt.” Kraken has taken legal action, seeking intervention from the courts in San Francisco and arguing that the IRS has exceeded its authority with unwarranted claims.
Kraken believes that the IRS’s demands for customer information exceed what is reasonable and necessary for tax compliance purposes. The exchange is firm in its stance against what it perceives as an overreach by the agency.
Featured image from Shutterstock, Chart from TradingView
