Kraken to Blame Bloomberg in BTC Futures Manipulation

Exchange's team posted a reply-article to recent Bloomberg's paper
02 July 2018   743

The Kraken Crypto Currency Exchange responded to Bloomberg's recent publication, which said that it uses USDT tokens to perform questionable transactions.

Four Bloomberg reporters wrote that the USDT market on Kraken shows disturbing signals, which should be checked by regulators. Kraken, in turn, said that Bloomberg's findings were devoid of logic, and blamed "lemmings journalists" for helping to spread the dubious material. The exchange also suggested that Bloomberg could have its own motives to write such an article.

If we are to take up our pitchforks against market manipulation, guide your torches toward this illumination: the Bloomberg News piece was published on June 29th, the last business day of trading for Q2, and expiration date of numerous futures contracts.  It raises red flags.
 

Kraken's Article

The exchange, apparently, refers to futures traded on the CME. Transactions on them ended on June 29, and the calculation will take place on July 5. Thus, Bloomberg's material casts a shadow on bitcoin, and its publication on this day could be beneficial to those who took short positions in futures, suggests Kraken.

In its article, Bloomberg states that transactions of a small amount sometimes have a greater impact on the price of USDT than large transactions, and draws attention to a large number of orders of a certain size that could hardly have been placed by people.

Unlike the price of Bitcoin, which fluctuates in tandem with shifts in trading volume, the price of Tether is inconsistently changed by large and small orders to buy or sell the coin.
 

Bloomberg's Article

In response, Kraken writes that USDT tokens are provided with US dollars at a rate of 1 to 1, which distinguishes them from bitcoin, the price of which is determined by supply and demand.

This level of USDT price discovery happens on markets with hundreds of millions of dollars of volume, not on Kraken’s USDT/USD market, which has currently traded less than $1 million in the last 24 hours.
 

Kraken's Article

To answer Bloomberg's question about why "trades at a volume of 75 were by far the most common, and made up 7.9% of total trading activity on Tether between May 1–June 22" fall on orders worth 13076,389 USDT, Kraken had to contact the trader who placed them. According to him, this meaning "was chosen by chance".

Kraken to Pay $100k For Info on QuadrigaCX Lost Funds

As reported, the exchange wants to raise awareness of the QuadrigaCX case and draw attention to it
01 March 2019   183

Kraken has announced its willingness to pay a reward of $ 100,000 for information that will help in the search for cryptocurrency assets missing from the Canadian exchange QuadrigaCX.

As stated on the website of the exchange, since 2014, Kraken has invested significant resources and provided expert assistance to the trustee and investigators conducting the case of Mt. Gox, supporting the return of the largest possible number of bitcoins to the lenders of the exchange.

According to the founder, the exchange wants to raise awareness of the QuadrigaCX case and draw attention to it. As Kraken hopes, it will be able to help find at least some or all of the missing customer funds.

Simultaneously, the exchange conducted a podcast with Jess Powell, in which it published the most known information about the QuadrigaCX case and the alleged death of its founder and CEO, Gerald Cotten.

As stated by the exchange, information that will help in the search for missing funds, will be transfered to law enforcement agencies. Remuneration to informants can be paid both in cryptocurrency and in Fiat.

According to experts, QuadrigaCX’s debt to customers is $ 190 million ($ 137 million in cryptocurrencies and $ 53 million in Fiat). Due to unrecorded obligations, this amount may, however, turn out to be $ 6 million higher.