Kraken raises $500m pre-IPO, China’s digital yuan center, Tether funding round | Weekly Recap

From billion-dollar funding talks to courtroom drama and token turbulence, the past week in crypto packed a punch.

Investment activity intensified across the cryptocurrency sector as SoftBank and Ark Investment entered discussions for Tether’s multibillion-dollar funding round. At the same time, Kraken completed a $500 million raise ahead of its planned 2026 public offering.

Let us dive into this week’s edition of the weekly recap.

SoftBank and Ark explore Tether investment

• Tether, the world’s largest stablecoin issuer, is attracting interest from prominent technology financiers.
• Masayoshi Son’s SoftBank and Cathie Wood’s Ark Invest are reportedly among several high-profile firms engaged in early discussions on what’s expected to be Tether’s most significant external fundraising

Kraken secures pre-IPO funding

• Kraken, the Cheyenne, Wyoming-based cryptocurrency exchange, completed a $500 million funding round, establishing terms that valued the company at $15 billion. Participants included investment managers, venture capitalists, and co-CEO Arjun Sethi through his Tribe Capital firm.
• Sethi also announced that the exchange has committed $2 million to two crypto-aligned political action committees.

Aster exchange compensates users

• The BNB Chain-based decentralized exchange refunded users who experienced losses during “abnormal price movements” on the newly launched XPL token Thursday.
• Following multiple compensation rounds, Aster (ASTER) announced complete user reimbursement in USDT stablecoin.

China establishes Digital Yuan International Center

• The People’s Bank of China inaugurated an international operations center for its central bank digital currency in Shanghai on Thursday.
• The facility focuses on improving settlement efficiency while creating infrastructure for broader e-CNY integration across international markets.

South Korean actress receives suspended sentence

• Hwang Jung-eum received a two-year suspended prison sentence from Jeju District Court Thursday for embezzling $3 million from her agency to fund cryptocurrency investments.
• The court ruled that she violated Korea’s Act on the Aggravated Punishment of Specific Economic Crimes. However, she will avoid jail time unless she commits another crime within the next four years.

KuCoin appeals Canadian enforcement action

• The exchange is challenging a $19 million penalty from Canada’s Financial Transactions and Reports Analysis Centre for failing to register as a money-services business
• Seychelles-based Peken Global Limited, operating as KuCoin, allegedly failed to report large cryptocurrency transactions and flag suspicious activities that could involve money laundering or terrorist financing.

European banks collaborate on MiCA-compliant stablecoin

• Nine major European financial institutions, including ING, UniCredit, and CaixaBank, have united to launch a euro-denominated stablecoin under the Markets in Crypto Assets regulatory framework.

Australia proposes comprehensive crypto licensing

• Treasury officials released draft proposals requiring cryptocurrency firms to obtain financial service licenses and receive treatment as financial products under securities’ regulator oversight.
• Digital asset platforms and tokenized custody platforms would face the same licensing and consumer protection requirements as other financial intermediaries.

FTT token surges on Bankman-Fried social media activity

• The defunct FTX exchange’s native token experienced a 60% price increase in under 15 minutes following an unexpected social media GM post from former CEO Sam Bankman-Fried.
• The surge proved temporary, with FTT (FTT) retracing to $0.98 shortly after the initial pump.

BNB Chain proposes transaction cost reductions

• Validators have proposed cutting minimum gas prices from 0.1 Gwei to 0.05 Gwei while reducing block intervals from 750 to 450 milliseconds.
• The changes target average transaction costs of approximately $0.005.

Zhao denies YZi Labs fundraising reports

• Former Binance CEO Changpeng Zhao rejected Financial Times reporting that YZi Labs could accept external investors, calling the coverage “false news with fake/wrong/made-up info.”
• Zhao stated that “YZi Labs is not raising an external fund,” contradicting reports suggesting the rebranded venture arm was “open to the possibility of converting into an investment fund.”

FTX Recovery Trust sues Genesis Digital Assets

• The bankruptcy trust filed suit against the bitcoin mining firm, alleging former CEO Sam Bankman-Fried used commingled funds to invest in the company before FTX’s collapse.
• The lawsuit describes Alameda Research’s investment in Genesis Digital Assets as “one of Bankman-Fried’s most reckless investments with commingled and misappropriated funds.”

UXLINK suffers major security breach

• The Web3 social platform experienced a compromise of its multi-signature wallet, resulting in tens of millions of dollars in potential losses and a 70% decline in token price.
• Security firm Cyvers identified the attack method, noting the hacker executed a delegatecall, removed admin privileges, and transferred at least $4 million in USDT along with additional cryptocurrency holdings.

World Liberty Financial’s debit card plans

• Zak Folkman, co-founder of the Trump-backed crypto firm, revealed the project will launch a debit card “very soon” during Korea Blockchain Week. It will allow users to integrate USD1 with Apple Pay functionality.
• The card will complement an upcoming retail application described as “Venmo meets Robinhood,” combining peer-to-peer payments with trading capabilities.