Month: May 2023

The U.S. Bankruptcy Court approved Voyager Digital’s liquidation plan, enabling the return of approximately $1.33 billion in crypto to customers. This marks the third bankruptcy plan for Voyager, following Binance.US’s withdrawal from a previous agreement. Initial customer payments will be made in crypto or cash, with future litigations possibly impacting further distributions.

Grayscale and Bitwise recently halted their Ethereum futures ETF plans due to increased scrutiny from US regulators. SEC’s concerns have led to withdrawals and amendments of applications for related products. Proponents argue regulated crypto could boost adoption by institutional investors, while critics fear stifling innovation.

The bail deal for Terra Labs co-founder Do Kwon is now in question, as Montenegro’s State Prosecutor’s Office files an appellation against it. Kwon faces extradition to South Korea and criminal charges in the US, emphasizing the importance of regulatory adherence and transparency for crypto enthusiasts.

The U.S. Trustee challenges a Delaware bankruptcy court’s decision, arguing that an independent examiner must be appointed in the FTX bankruptcy case. Ensuring transparency, this appointment may bring unbiased perspective despite an estimated $100 million examination cost.

FTX lawyers sue former CEO Sam Bankman-Fried, co-founder Zixiao Wang, and ex-executive Nishad Singh over $220 million Embed acquisition, alleging lack of due diligence. FTX accuses insiders of perpetrating massive fraud using misappropriated customer funds for Embed’s purchase, and seeks to label transactions as “avoidable fraudulent transfers and obligations.”

Recently, Binance Australia suspended Australian Dollar bank transfers using PayID due to issues with its third-party payment service provider, while Crypto.com faces banking challenges affecting its liquidity. These incidents highlight the importance of establishing clear guidelines and a robust legal framework for cryptocurrency exchanges, ensuring a secure environment for digital asset transactions.

Pakistan’s Senate Standing Committee on Finance seeks to ban cryptocurrency use amid economic difficulties, with inflation hitting 36% in April 2023. The country’s financial policymakers view cryptocurrencies as high-risk, fearing potential financial terrorism and further strain on IMF relations. Critics argue that cryptocurrencies can act as a hedge against inflation in economically unstable nations.

The Treasury Committee’s proposal to regulate unbacked cryptocurrencies like gambling has faced backlash from CryptoUK and Kraken UK. Critics argue that this approach overlooks sector nuances and hinders growth, while urging for a bespoke regulatory model for the UK’s cryptocurrency framework.

The decentralized storage system Filecoin gained attention as its native cryptocurrency, FIL, experienced a 3% value increase, despite being labeled as a security by the SEC. Grayscale Investments withdrew their application for a Filecoin Trust, marking ongoing struggles between crypto innovation and regulation.

Defense lawyer James K. Filan expects the Hinman Speech documents – revealing SEC’s internal discussions on Ether (ETH) classification – to be released by June 6. The unsealing of these documents could affect the future of cryptocurrency regulations and impact the ongoing battle between the SEC and Ripple Labs.

South Korea’s lawmakers are expediting the nation’s first standalone crypto bill, the Virtual Asset User Protection Bill, aiming to improve investor safety amid recent digital asset-related controversies. The comprehensive legislation consolidates 19 different crypto-related bills, providing clear legal definitions, outlining penalties, and mandating increased oversight and insurance for digital asset firms.

This article discusses the risks associated with bank failures and the crypto market, highlighting the dependency of stablecoin issuers on banking partners for fiat settlement. It suggests granting e-money institutions direct access to central bank accounts, like in the UK and Lithuania, to increase safety, foster payment innovation, and reduce banking risks.

South Korean lawmakers may soon need to declare their crypto holdings amid a national outcry over alleged “insider trading.” This development is linked to the controversy involving MP Kim Nam-kuk, accused of suspicious crypto trades worth around $4.5 million. The situation raises questions about transparency and regulation within the expanding crypto space and their integration into traditional financial and political systems.

The SEC now considers Filecoin’s native token, FIL, to be a security, resulting in Grayscale Investments challenging the regulator’s viewpoint. Amid increasing regulatory crackdown on crypto products, this decision raises questions about the extent of oversight in the industry and the balance between innovation and protection.