Canary Capital Files for Tron ETF With Staking Capabilities

Canary Capital is looking to launch an exchange-traded fund (ETF) tracking the price of Tron’s native token, TRX, according to a filing.

The hedge fund submitted a Form S-1 for the Canary Staked TRX ETF with the Securities and Exchange Commission (SEC) on Friday. As the name suggests, the fund — if approved — would stake portions of its holdings.

This would be done through third-party providers, with BitGo acting as custodian for the assets. The fund would track TRX’s spot price using CoinDesk Indices calculations.

A proposed ticker as well as the management fee for the product have not been shared yet.

Issuers had initially filed applications for spot ethereum (ETH) ETFs with the staking feature included but removed them in an amended filing later in order to receive approval from the SEC on their proposals.

While the SEC under former Chair Gary Gensler was strictly against staking, issuers have grown more hopeful that they will be able to add the feature to their spot ether funds, among others, with the appointment of crypto-friendly Chair Paul Atkins.

A decision on a February request from Grayscale to allow staking in the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH) was postponed by the regulator just a few days ago.

source https://www.coindesk.com/policy/2025/04/18/canary-capital-files-for-tron-etf-with-staking-capabilities

Feds Mistakenly Order Estonian HashFlare Fraudsters to Self-Deport Ahead of Sentencing

Just four months ahead of their criminal sentencing for operating a $577 million cryptocurrency mining Ponzi scheme, the two Estonian founders of HashFlare were seemingly mistakenly ordered to self-deport by the U.S. Department of Homeland Security (DHS) — an instruction that directly contradicted a court order for the men to remain in Washington state until they are sentenced in August.

In a joint letter to the court last week, lawyers for Sergei Potapenko and Ivan Turogin told District Judge Robert Lasnik of the Western District of Washington that both men had received “disturbing communications” from DHS ordering them to leave the country immediately.

“It is time for you to leave the United States,” an email to Potapenko and Turogin dated April 11 read. “DHS is terminating your parole. Do not attempt to remain in the United States - the federal government will find you. Please depart the United States immediately.”

The email, included with the letter filed last week, threatened both men with “criminal prosecution, civil fines, and penalties and any other lawful options available to the federal government” if they stayed in the country. It resembles emails that undocumented immigrants and U.S. citizens alike have received over the past few days.

Ironically, Potapenko and Turogin are not in the U.S. of their own volition — they were extradited from their native Estonia at the request of the U.S. Department of Justice in 2022 on an 18-count indictment tied to their HashFlare scheme. Though they initially pleaded not guilty to all charges, in February they both pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, and agreed to forfeit over $400 million in assets. They have both been in the Seattle area on bond since last July.

“Although there is nothing Ivan and Sergei would want more than to immediately go home, they understood that they are also under Court order to remain in King County,” wrote Mark Bini, a partner at Reed Smith LLP and lead counsel for Potenko, wrote in the pair’s joint letter to the court. Bini did not respond to CoinDesk’s request for comment.

In his letter, Bini said DHS’s emails had caused both Potapenko and Turogin "significant anxiety.”

“We and our clients have all seen recent news. Immigration authorities make mistakes, and individuals who should not be in custody end up in custody, sometimes even deported to places where they should not be deported,” Bini wrote.

Six days after Bini’s letter to the judge, the DOJ filed its own letter with the court saying that prosecutors had coordinated with DHS’s Homeland Security Investigations (HSI) division and secured a year-long deferral to the self-deportation order.

“This should provide ample time for the sentencing to take place,” the prosecution’s letter said.

DHS did not respond to CoinDesk’s request for comment.

Potapenko and Turogin are slated to be sentenced on August 14 in Seattle. Their lawyers have said that they will request to be sentenced to time served, meaning no additional time in prison, and to be sent home to Estonia “immediately.”

source https://www.coindesk.com/policy/2025/04/18/feds-mistakenly-order-estonian-hashflare-fraudsters-to-self-deport-ahead-of-sentencing

CoinDesk Weekly Recap: EigenLayer, Kraken, Coinbase, AWS

Following last week’s tariff-caused drama, this was a relatively quiet week in crypto. Bitcoin remained stable around $84k. The CoinDesk 20, which tracks about 80% of the market, was up about 4% in the last seven days — i.e. nothing historic.

Still, plenty happened. On Tuesday, much of crypto went offline because of a tech issue at AWS, showing how the decentralized economy isn’t always that decentralized. Shaurya Malwa reported the news early. Bitcoin and other major cryptos slipped on bad news for Nvidia, Omkar Godbole reported.

Mantra, a project focused on real world assets, lost 90% of its value. Explanations varied (the company said it was due to “force liquidations” exchanges).

Meanwhile, EigenLayer, a restaking leader, rolled out a “slashing” feature meant to address security concerns (Sam Kessler reported). OKX, a major exchange, announced plans to set up in California following a $500 million settlement with the SEC over claims it operated previously in the U.S. without a money transmitter license. Cheyenne Ligon had that story.

In less good news, Kraken laid off “hundreds” of staff ahead of an expected IPO. And Coinbase became embroiled in a “front running controversy” linked to a curiously named token on its Base L2. Privacy advocates reacted with alarm to rumors that Binance was about to delist Zcash following a long decline in the value of privacy coins.

In D.C. news, Jesse Hamilton reported on a new wave of crypto lobbyists flooding the capital. Some asked if there are now too many trade groups and whether they really all could be effective.

Friends With Benefits, a buzzy social club for creative technologists, launched a new program to build Web3 products for music, film, publishing and other fun activities. (I wrote that one.)

Of course, there was plenty happening in the economy and markets (Trump’s disgust for Fed chair Powell fed into the unease). But, in crypto, it was pretty much business as usual. Fortunes won, fortunes lost, fortunes deferred.

source https://www.coindesk.com/news-analysis/2025/04/18/coindesk-weekly-recap-eigenlayer-kraken-coinbase-aws

Kraken Sheds ‘Hundreds’ of Jobs to Streamline Business Ahead of IPO, Sources Say

Crypto exchange giant Kraken has laid off hundreds of staffers across all areas of the business over the past several months, as the firm continues to streamline its operations ahead of a potential public listing in the U.S., according to two people familiar with the situation.

Kraken was reported to have laid off 400 staff, or about 15% of its workforce, at the end of October last year, when Silicon Valley investor and Kraken board member Arjun Sethi became co-CEO alongside David Ripley, who took the reins when former CEO Jesse Powell stepped down in 2023.

Since Sethi became co-CEO, “hundreds more have gone,” said a person familiar with the situation, who pointed to a rolling program of firings over and above the 15% cut late last year.

“They're culling aggressively across all functions, and it's a constant and ongoing thing. It’s about improving Kraken’s EBITA [earnings before interest, tax and amortization],” the person said.

When the CEO role was split last year, Sethi and Ripley said in a blog post that there was a need to shed “organizational layers” that had accumulated in Kraken, and make the business “leaner and faster.”

Several crypto firms are currently getting their houses in order to launch an initial public offering (IPO) this year or early next year. Kraken has also been pushing for increased revenues by acquiring businesses such as derivatives platform Ninja Trader, for instance, and recently announcing the addition of stock trading.

"Kraken's business is thriving. We're launching more new products than ever before, driving strong revenue growth, and rapidly expanding across our entire product portfolio — including through the agreement to acquire NinjaTrader, announced earlier this year,” a Kraken representative told CoinDesk.

"At the same time, we continuously evaluate our workforce to ensure it aligns with our strategic priorities. We're approaching this with discipline and intention, making the difficult decision to eliminate certain roles and consolidate teams where redundancies exist, while continuing to hire in key areas of the business," the Kraken spokesperson said.

source https://www.coindesk.com/business/2025/04/17/kraken-sheds-hundreds-of-jobs-to-streamline-business-ahead-of-ipo-sources-say

Panama City Greenlights Bitcoin, Ether Payments for Tax and City Services

The capital of Panama will accept crypto payments for certain services, Panama city Mayor Mayer Mizrachi said in an X post.

source https://www.coindesk.com/markets/2025/04/17/panama-city-greenlights-bitcoin-ether-payments-for-tax-and-city-services

SOL Jumps 6%, Bitcoin Clings to $84K on Dampened Rate Cut Hopes

Crypto markets steadily rose in Asian morning hours Thursday after a sell-off the night before as Fed chair Jerome Powell dashed hopes of early rate cuts as global markets reel from the impact of newly-levied U.S. tariffs.

Bitcoin (BTC) added 2% in the past 24 hours, data from CoinGecko shows, touching nearly $84,500. Ether (ETH), XRP, dogecoin (DOGE) and BNB Chain’s BNB added between 1%-3%, with Solana’s SOL leading at 6%.

Down the pecking order, Hyperliquid’s HYPE surged 8.5% to lead gains among midcaps on no immediate catalyst. Celestia’s TIA dumped 4% to lead losses, as selling pressure on tokens with a long unlock schedule is increasing following Mantra DAO’s nosedive earlier this week.

Powell mentioned that the Fed needed more time to see the effects of tariffs play out in the global economy. The same is likely to be true of the economic effects, which will include higher inflation and slower growth, hinting at “stagflation” — a throwback to a sizable portion of the 1970s when the U.S. experienced weak economic activity alongside double-digit inflation.

“Traders had been hoping for the Fed to come in with early rate cuts to bolster markets, but it looks like that's not going to happen anytime soon,” Jeff Mei, COO at BTSE, told CoinDesk in a Telegram message. “In the short term, we expect Bitcoin to continue to trade in the $80,000 - $90,000 range until we see more clarity on tariff negotiations and rate cuts.”

Elsewhere, Augustine Fan, head of insights at SignalPlus, said that Powell's remarks disappointed doves by stressing their focus on protecting against tariff-driven price hikes from driving a long-term rise in inflation expectations.

“Crypto traded water for the most part, though technicals remain more constructive in the near term as long as BTC can hold above 81k, with markets focused on details on Trump’s 1st trade deal when it arrives, as well as the corporate earnings season kicking into high gear starting next week,” Fan said.

Meanwhile, here’s the technical analysis and patterns spotted by machines in the market today.

SOL Price Analysis

SOL experienced a 14.5% price surge from $119.58 to $136.01 between April 11-14, followed by a notable correction.

The overall range of $16.42 represents a 13.7% volatility span.

After reaching peak volume during the April 12-13 rally, momentum indicators show weakening buying pressure.

SOL has established a descending resistance trendline from the $136 high.

Support has formed around $126-$127, with the 50-hour moving average acting as dynamic resistance.

Recent price action suggests consolidation after the rally, with lower highs indicating potential further downside if the $125.67 support breaks.

XRP Price Analysis

Recent volatility suggests XRP may be coiling for a significant move as it tests critical support levels following dramatic price swings.

XRP experienced a dramatic price surge on April 12-13, climbing from $2.00 to a peak of $2.24 (11.7% range), driven by exceptional volume exceeding 240M during the breakout hour.

The rally established strong resistance at $2.18-$2.24, while forming support at $2.08-$2.10.

Recent price action shows a bearish reversal pattern with declining momentum as XRP retraced to $2.09, settling into a consolidation phase.

The 48-hour Fibonacci retracement indicates the price has pulled back to the 61.8% level, suggesting potential stabilization, though declining volumes and the failure to hold above $2.15 signal caution for bulls in the near term.

ETH Price Analysis

Ether experienced significant price volatility with a 7.8% overall range ($119.72) between $1,546.87 and $1,666.50.

The 48-hour analysis reveals a bearish reversal pattern as ETH failed to sustain momentum after reaching $1,690.16, subsequently forming a double top before declining sharply.

Volume analysis shows heightened trading activity during downward movements, particularly during the April 14th selloff where volume exceeded 500,000 units, indicating strong selling pressure.

The 50-hour moving average around $1,625 now serves as immediate resistance, with key support established at $1,585-$1,590.

source https://www.coindesk.com/markets/2025/04/17/sol-jumps-6-bitcoin-clings-to-usd84k-on-dampened-rate-cut-hopes

Three Wallets Snag ‘Base is for everyone’ Tokens Before Official Announcement, Profiting $666K

Token debuts remain a contentious issue, often criticized for their poor execution that allows individuals, supposedly armed with insider information about impending launches, to profit through front-running campaigns.

The latest example is the "Base is for everyone" token announced by Coinbase's Ethereum Layer 2 solution Base on Wednesday. Three crypto wallets bought tokens ahead of the official announcement on X, resulting in significant profits, according to blockchain sleuth Lookonchain.

At around 19:30 UTC on Wednesday, Base announced the debut of its token minted via Zora, an on-chain social network, empowering creativity by turning any content posted on its network into tradable coins. The token quickly rose to a market capitalization of over $15 million, bringing significant gains to at least three crypto addresses that acquired coins before the official announcement on X.

"3 wallets bought a large amount of "Base is for everyone" before @base posted and sold them, making a profit of ~$666K," Lookonchain said on X.

The wallet address 0x0992 invested 1.5 ether (ETH), to purchase 256.39 million units of the token at 12:30 PM UTC and sold the entire coin stash for 108 ETH following the official announcement, pocketing a profit of $168,000 in just over an hour. Wallet address 0x5D9D invested 1 ETH ($1,580) and walked away with $266,000 profit, and another address, labelled 0xBD31, made $231,800.

The token's market capitalization tanked to less than $2 million after that as Base announced another coin for its FarCon poster, sucking out liquidity from the Base is for Everyone token and leaving entrants in the latter with a large loss.

However, valuations have recovered since then, with the market capitalization of Base is for everyone topping the $18 mark as of writing, per data source DEX Screener. Base creator Jesse greenlighted the token, saying, "The goal is to “normalize putting all content on-chain."

Base only posted on Zora

Coinbase clarified that the Base is for everyone coin is not the official cryptocurrency of Base and the layer 2 did not directly sell these. “Base posted on Zora, which automatically tokenizes content,” Coinbase’s spokesperson told CoinDesk.

The legal disclaimer on Zora suggested the same, with Base also clarifying its position on X, saying, it shall never sell these tokens.

“To be clear, Base will never sell these tokens, and ​​these are not official network tokens for Base, Coinbase, or any other related product. The content we share is creative, and we're going to keep bringing culture on-chain,” Base said.

Negative wealth effect

The rapid boom-bust cycles in these smaller tokens often create a net negative wealth effect, allowing a select few to profit significantly while the majority face losses. This often leads to liquidity drain from the broader digital assets market.

The larger the boom-and-bust cycles associated with these coins, the stronger the negative wealth effect.

For instance, this year's debut of LIBRA and TRUMP tokens destroyed millions in investor wealth, marking a major price top in bitcoin and the broader crypto market.

source https://www.coindesk.com/markets/2025/04/17/three-wallets-snag-base-is-for-everyone-tokens-before-official-announcement-profiting-usd666k