📝SEC Targets Kraken With Latest Lawsuit Targeting Crypto

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TLDR The SEC filed a lawsuit against Kraken, the popular U.S.-based exchange, alleging the platform facilitated trade in unlicensed securities and commingling billions in customer assets. Kraken vowed to fight the lawsuit, adding that it will continue operating as usual despite the complaint.

SO WHAT The lawsuit is the latest chapter in the SEC's campaign of regulation-by-enforcement, with the agency levying similar complaints against Coinbase and Binance earlier this year. However, U.S. courts have recently sided against the SEC regarding the regulator's lawsuits against Ripple and Grayscale.

READ MORE: SEC Sues Kraken Alleging Unlicensed Securities Trades and ‘Commingling’ of Customer Funds

TLDR DYdX, the leading perpetuals DEX, i attracting criticism for its response to a $9M "market manipulation" attack. The team promised rewards to sleuths who help uncover the identity of the attack's perpetrator and said it is reporting the incident to the FBI.

SO WHAT Decentralization devotees accuse dYdX of responding to the attack in a centralized fashion, with dYdX also moving to make up the $9M shortfall with assets from its insurance fund without consulting governance. However, dYdX said it is progressively moving towards decentralization, and that its insurance fund is explicitly mobilized automatically.

Read More: Web3 Community Slams dYdX For ‘Centralized’ Response to Alleged Market Manipulation Attack

TLDR The Tron-based JustLend protocol has overtaken Aave to rank as the largest web3 money market with a $6B TVL. The milestone follows 30-day growth of 12% for JustLend.

SO WHAT JustLend's newfound dominance over the lending sector is the latest sign of Tron's increasing web3 market share. The network now overshadows BNB Chain's TVL by more than double and hosts more stablecoin volume than any other chain.

Read More: Tron’s JustLend Surpasses Aave As Largest Web3 Lending Market

TLDR Ethereum validators are now queuing up to offboard the network while the waitlist for native stakers coming online is empty. Despite the trend emerging in recent weeks, the number of live validators on Ethereum taged a new all-time high on Nov. 19

SO WHAT Ethereum's validator waitlists completely emptied for the first time last month. The news comes in stark contract to recent warnings that Ehtereum's staking layer could absorb half of circulating Ether by and trigger a supply shock by next May.

Read More: Ethereum Validators Are Now Queuing To Exit The Network

TLDR Pyth Network, a web3 oracle provider, has launched its long-awaited airdrop and token. More than 90,000 wallets across 27 chains that interacted with protocols secured by Pyth can claim PYTH tokens.

SO WHAT Pyth's goal of distributing its token to a wide variety of crypto users appears to be paying off, with PYTH already trading at a fully-diluted valuation of $3B. However, airdropped tokens are notorious for producing violent post-launch retracements, meaning the sustainability of its current valuation remains to be seen.

Read More: Pyth Network Token Goes Live With $75M Airdrop For DeFi Users

TLDR Polkadot, the "Layer 0" network from Ethereum co-founder, Gavin Wood, is set to overhaul its core parachain system. In an exclusive interview with The Defiant, Fabian Gompf, the Web3 Foundation's new CEO, said Polkadot will establish a marketplace for parachain blockspace.

SO WHAT Polkadot originally sought to enable high transaction throughput by securing up to 100 Layer 1 "parachains" by leveraging the expansive staking ecosystem for its Layer 0 "relay chain." The forthcoming upgrade will allow projects to bid on parachain blockspace moving forward.

Read More: Polkadot is About to "Fundamentally Change," Said Web3 Foundation's New CEO

TLDR Fren Pet, a Tomagotchi-inspired game on Base, is driving a resurgence in activity on Coinbase's Layer 2 network. The project's native token is half of the network's fourth-most-traded pairing following a rally of 3,700% over the weekend.

SO WHAT Base quickly emerged as a leading Layer 2 following its August launch, but has since tumbled down the L2 rankings. Fren Pet's growth follows the explosive success of the SocialFi application, Friend Tech.

Read More: Tomagotchi-Like Fren Pet is Crushing it on Coinbase's Base Network

• Fantom narrowly avoids $170M hack
• Tether freezes 225M USDT linked to massive crime ring
• Bittrex will wind down on Dec. 4

• US Is Seeking More than $4 Billion From Binance to End Case (Bloomberg)
• Tether billion-dollar deposit in UK bank sparks legal showdown: FT (CryptoSlate)
• Japanese exchange plans to start digital securities trading on Dec. 25 (Cointelegraph)