Kraken begins to withdraw all the ETH used in front of Shapella

Kraken begins to withdraw all the ETH used in front of Shapella

With the long-awaited Shapella upgrade just around the corner, the Kraken Kraken is preparing to withdraw all used ETH on behalf of its customers as soon as possible after the update was published.

The event will bring Kraken Staking as a service product to a complete degree after the supervisory authorities forced the program in February.

octopus withdraws its use

In a Twitter answer on Wednesday Kraken Support team shared with confirms that the blocked ETH of the platform for US customers afterwards "automatically enter the UNSTAKING process". Formella goes live.

The upgrade, which is planned on April 12 at 10:27:35 UTC for Block 6209536, it will enable Ethereum stackers to finally withdraw your ETH from the network's staking contract for the first time since December 2020. Currently over 18 million ETH in the Ethereum are closed contract of which, according to glassnode data, over 1,247,000 are part of.

The popular Ethereum teacher Sassal.eth on Twitter called that the staking withkras started before the upgrade and that other validators are also able to withdraw. However, the stock exchange will not be able to withdraw its initial deposit of 32 ETH, which is required for staking, or the associated rewards until Shapella takes place.

Some investors have feared that the activation of withdrawals could bring a massive amount of ETH onto the market and possibly press the price. Data from Intotheblock suggests that a tiny fraction of the validators have so far decided to withdraw their use.

"What do scrawls are doing is to leave their validators," he said. "You do this because of the SEC lawsuit that was strained against the Ethereum Staking product of octopuses in February."

sec vs staking

Two months ago, the Securities and Exchange Commission (Sec) imposed a fine of $ 30 million against octopus because it had not registered its staking product as securities. While the enforcement measures did not get out without criticism from industry leaders and crypto support politician other exchanges such as coinbase are prepared Style = "Font-Weight: 400"> for offering a similar product.

Staking as a Service enables private customers access to staking bonuses without technical know-how and without having to exceed the 32-eth threshold for the operation of a personal validator. The second chairman Gary Gensler has warned that such services and the detection of stake cryptocurrencies in the broader sense are possible qualify as securities after the Howey test.

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