Indian police arrest eight more in $300M crypto scam

Vauld Implements Key Leadership Changes Amid Bankruptcy ProceedingsFailed Singaporean cryptocurrency lender Vauld has unveiled a comprehensive overhaul of its board structure.Photo by Yibei Geng on UnsplashOngoing restructuringThe platform, which faced financial turmoil leading to its declaration of bankruptcy last year, is introducing fresh leadership to spearhead its restructuring efforts. The move involves the appointment of a new CEO, a creditor representative, and a scheme manager.The current CEO and Co-Founder of Vauld, Darshan Bathija, announced the proposed changes via a post on X (formerly Twitter) on Thursday. He emphasized that the new appointees would take charge of orchestrating a much-needed bailout.The challenges faced by the company through its ongoing bankruptcy proceedings have prompted Vauld to secure court approval for this new organizational scheme. In his social media post, Bathija stated:“Vauld (Defi Payments Pte Ltd) got its scheme of arrangement passed in Singapore courts. As part of the scheme, the current board will be replaced with a new CEO, a creditor representative, and a scheme manager.” Additionally, Bathija noted that the exchange’s customers are actively updating their Know Your Customer (KYC) details.This announcement comes almost a year after Vauld came under scrutiny due to a money laundering investigation. The cloud of suspicion surrounding the firm at the time led to the freezing of assets worth $46.4 million from its domestic operations by Indian authorities.Nexo acquisition failureIn February of this year, the Singapore High Court granted Vauld an extension until March 24 to formulate a comprehensive strategy for repaying its creditors. The extension became crucial after a potential acquisition deal with Nexo fell through. However, despite this reprieve, the exchange was unable to secure a further extension, fueling discussions within the community about the challenge of meeting creditor obligations within a relatively short time frame.In a step to facilitate the resolution of outstanding amounts, the court established a committee of creditors (CoC). This move was prompted by allegations from a faction of creditors that Vauld was impeding communication and implementing unwarranted corrective measures. Notably, the exchange owes more than $2.2 million to these creditors.Vauld has contracted the services of risk and financial advisory firm Kroll as part of the restructuring efforts. In an isolated instance of good fortune, it appears that Vauld creditors are unaffected by a data breach which occurred recently at Kroll, while creditors of the Genesis, FTX, and BlockFi crypto bankruptcy processes have had their data compromised.Charting a path forwardBathija conveyed that more updates regarding the platform’s path forward would follow soon. Vauld’s financial instability can be attributed to several factors, chief among them being the ripple effect of Terra’s downfall. Further complications arose due to economic issues tied to the Celsius Network and Three Arrows Capital (3AC) defaulting on their loans. These cumulative challenges led to Vauld’s operational suspension.Despite this failure and similar issues relative to crypto lender Hodlnaut and 3AC, which were also based in the city state, Singapore continues as a jurisdiction that effectively balances regulatory control with the drive to foster innovation. Its central bank and financial regulator, the Monetary Authority of Singapore (MAS), recently unveiled a comprehensive framework for stablecoins.

Nomura Subsidiary Achieves In-Principle Approval in Abu DhabiThe digital assets subsidiary of Japanese financial services conglomerate Nomura has been granted in-principle approval by the Abu Dhabi Global Market (ADGM) to offer broker-dealer and asset/fund management services for both digital and traditional assets.Photo by Belinda Fewings on UnsplashPreliminary license to tradeThe development is a shot in the arm for Laser Digital Asset Management while serving to highlight Abu Dhabi’s growing prominence as a global center for digital assets, attracting prominent players such as Binance and Kraken.Led by CEO Jez Mohideen, Laser Digital is now on the path toward securing full financial services authorization in Abu Dhabi, subject to meeting undisclosed conditions specified in the approval. The company is enthusiastic about the ADGM’s transparent and comprehensive regulatory framework.Speaking to that, Mohideen stated: “We are thrilled to be part of their comprehensive and clear regulatory framework, which is creating a global hub for digital assets.”International free zoneThe ADGM, an international financial free zone situated in Abu Dhabi, covers nearly 15 square kilometers across two islands. It hosts a registration authority, regulatory authority, and a court system functioning under common law principles. This favorable regulatory ecosystem has been instrumental in attracting digital asset firms to establish a presence in the UAE’s capital.Laser Digital’s approval follows a series of recent cryptocurrency-related approvals in Abu Dhabi. Zodia Markets, backed by UK bank Standard Chartered, was recently granted permission to operate as a crypto broker, adding to the growing list of companies making strides in the region.Binance, one of the world’s largest cryptocurrency exchanges, received in-principle approval from the ADGM in April 2022 and subsequently obtained full financial services permission in November of the same year. Kraken, along with firms like UAE-based M2 and Bahrain-based Rain, have also received permissions to operate within the ADGM in recent years.Building on Dubai achievementLaser Digital’s approval in Abu Dhabi comes on the heels of its earlier achievement of obtaining an operating license from Dubai’s Virtual Asset Regulatory Authority (VARA). Alongside these regulatory milestones, Laser Digital introduced an institutional Bitcoin Adoption Fund in August. Despite its relatively short existence since its establishment in September 2022, the firm has made significant strides.Nomura’s engagement extends beyond Laser Digital, as it is also part of the Komainu joint venture alongside cryptocurrency firms CoinShares and Ledger. Komainu secured its operating license from Dubai’s VARA in August, contributing to the expanding community of crypto-focused businesses in the region.It is worth noting the UAE’s diversified approach to cryptocurrency regulation, offering five distinct regulatory regimes for cryptocurrencies, including the ADGM and VARA. Legal experts from White & Case have recently assessed these regulatory frameworks, highlighting the UAE’s commitment to fostering a progressive and well-regulated environment for digital assets.Nomura’s Laser Digital is well-positioned to play a pivotal role in the digital asset sector in Abu Dhabi, given that it’s leveraging the favorable regulatory environment of the ADGM and the UAE’s dedication to becoming a global digital asset hub.

Uzbekistan Revamps Crypto Mining with New Regulatory FrameworkUzbekistan is ushering in a reset on its approach to cryptocurrency mining with the implementation of a new regulatory framework by the central Asian country’s National Agency of Perspective Projects (NAPP).Photo by Farhodjon Chinberdiev on UnsplashFocusing on solar powerThese freshly endorsed rules were announced earlier this week. They establish stringent guidelines for cryptocurrency mining operations within the country, reserving mining exclusively for registered legal entities and mandating the use of solar power.Under the sweeping regulations, individual miners are barred from participating in cryptocurrency mining activities, a move aimed at bringing structure and oversight to the expanding crypto mining sector within Uzbekistan’s borders.A key feature of the framework is the requirement for cryptocurrency miners to harness electricity generated by solar photovoltaic means. This environmentally conscious approach mirrors global endeavors to promote sustainability and clean energy sources in the crypto mining sector. Miners are also permitted to connect to the national electrical power grid, but only under specific conditions as outlined in the legislation.Safeguarding the power gridIn this respect, Uzbekistan is likely to be learning from the experiences of its northern neighbor, Kazakhstan. Following a ban on crypto mining in China in 2021, Kazakhstan suddenly became the second largest global center for Bitcoin mining. Unprepared for this eventuality, this mining activity caused major problems for the country’s power grid, resulting in blackouts and unrest.The NAPP underscores the necessity for mining operations and service providers to adhere to these newly established rules. To engage in cryptocurrency mining legally, entities must secure the requisite permits and licenses. These permits, valid for five years, come with strict reporting obligations, ensuring transparency and regulatory compliance.Moreover, cryptocurrency miners must prioritize the technical integrity of their electrical supply systems, emphasizing safety and reliability to prevent electrical accidents and maintain secure operating environments.In a bid to nurture a controlled and regulated cryptocurrency ecosystem, Uzbekistan’s crypto watchdog has already issued licenses to several entities, including a cryptocurrency exchange, a crypto depository, and ten other crypto trading platforms. Encouragingly, discussions have taken place with global exchanges like Binance, Huobi, and Bybit, signaling Uzbekistan’s ambitions to establish itself as a cryptocurrency hub.Ban on individual minersThe NAPP’s latest framework also outlaws the mining of anonymous cryptocurrencies designed to enhance transaction privacy, such as Monero (XMR). This measure aligns with international efforts to combat illicit activities linked to anonymous digital currencies.It’s worth noting that these new regulations represent the latest in a series of decrees by the Uzbek government, reiterating the ban on individual miners and the use of cryptocurrencies for domestic payments. Consequently, the full impact of these recent regulations on the nation’s cryptocurrency mining landscape remains to be seen.Uzbekistan’s decision to confine cryptocurrency mining to legal entities employing solar power reflects a growing understanding of the opportunity the activity provides to effectively exploit excess renewable power. In July, the President of eastern neighbor Kyrgyzstan put forward an ambitious project to use crypto mining to exploit the country’s hydro-electric power resources.