Korea to Ban Virtual Asset Deposit Services from Next July

3AC liquidators estimate 46% recovery while BVI court freezes $1BThe joint liquidators of the now-defunct Singaporean crypto hedge fund Three Arrows Capital (3AC) have provided creditors with an estimated 45.74% recovery rate for their claims in the bankrupt estate. Meanwhile, in parallel proceedings in the British Virgin Islands (BVI), a court has frozen $1 billion of founders’ assets.According to The Block, the details were disclosed in a December report to creditors by joint liquidators Russell Crumpler and Christopher Farmer of Teneo, the firm appointed to oversee the liquidation of the failed business.$1.16B in assetsAs of Dec. 18, the estimated value of 3AC’s assets was reported to be $1.16 billion, while claims totaling $2.7 billion are expected to be recognized for distribution. The liquidators highlighted that settlements in litigation against various parties, including DCG, Genesis and BlockFi, increased reported assets by an estimated $292 million. It’s important to note that the BlockFi settlement is still pending approval.A total of 154 claims, valued at $3.4 billion, were filed against the 3AC estate. The report indicates that $200 million of claims were not admitted for distribution, and $322 million in claims have either been rejected or are expected to be rejected. Additionally, $76 million in claims are currently under dispute. The report reveals that initial distributions to creditors are being planned for the first quarter of the upcoming year.Illiquid tokensThe breakdown of assets reveals that a large majority are illiquid tokens, subject to vesting periods, comprising 82% of the total. Only 6% of the portfolio is liquid, while equity and investments account for 6.9% and 4.8% is in cash. These illiquid tokens, totaling $563 million at current prices, consist of 13 different tokens with vesting schedules unlocking assets over the next three years, reaching $200 million by the end of 2024.To date, the liquidators have staked some of these tokens, resulting in $5.4 million in staking rewards. Liquidation efforts, including the sale of $34.5 million worth of liquid tokens and $15 million in NFTs, along with other asset sales, have generated a total of $66 million.Photo by Kemp Fuller on UnsplashFrozen assetsIn a related development, Bloomberg reported on Thursday that a British Virgin Islands court has frozen assets totaling $1.1 billion belonging to 3AC co-founders Su Zhu and Kyle Davies, along with Davies’ wife Kelly Chen. The liquidators filed a claim for insolvent trading against the founders for $1.078 billion, with additional claims against Davies for $66 million and Chen for $4.6 million.Teneo outlined the rationale behind the move in the following statement it made to Decrypt:“The worldwide freezing order has been sought in connection with claims that are being pursued by the liquidators that allege, amongst other things, that the Founders should be held responsible for causing 3AC’s position to deteriorate by an amount that is equivalent to the value of the freezing orders sought.”Su Zhu, who was under house arrest for the last few weeks, became free on Dec. 20. Zhu had been arrested in Singapore on Sept. 29 and sentenced to four months imprisonment, serving two-thirds of his sentence under house arrest.Throughout the bankruptcy proceedings, legal fees have accumulated to $49.7 million while the report suggests ongoing efforts to maximize creditor recovery.

LINE Xenesis Introduces AVA, an Entertainment NFT PlatformLINE Xenesis, a blockchain affiliate of Tokyo-based messaging app provider LINE Corp, announced on Wednesday the launch of AVA, an entertainment non-fungible token (NFT) platform aimed at both Japanese and international users.Photo by Choong Deng Xiang on UnsplashDOSI servicesFollowing the integration of LINE BITMAX Wallet into DOSI Wallet in March, LINE Xenesis has been striving to provide DOSI services for its users in Japan. DOSI Wallet enables users to manage a range of digital assets, including NFTs. As of April, the company has rolled out two new services: DOSI Citizen, a membership program, and AlphaCrewz, an app allowing users to create 3D avatars utilizing NFTs.NFTs known as CrystalsLaunched on May 9, AVA is the third service designed to engage LINE Xenesis users in Japan. The platform employs NFTs, known as Crystals, to connect artists and fans, which are divided into three categories: normal, rare, and unique, each offering different benefits.TREASUREBefore AVA’s debut, a March 27 airdrop event featuring the world-renowned South Korean boy band TREASURE attracted over 7,000 participants. With the launch of AVA, 7,000 TREASURE Crystals have been made available for purchase.TREASURE Crystal holders can enjoy four perks: storing exclusive videos in Crystals, receiving autographed trading cards and polaroid pictures, earning a portion of Crystal revenues for promoting TREASURE locally and on buses, and having the opportunity to submit inquiries and requests directly to the group. For the last benefit, TREASURE will respond to the most popular questions, as decided by user votes, with voting influence determined by the type of Crystal held.ATEEZThe second NFT collection on AVA will highlight another K-pop boy group ATEEZ, with ATEEZ Crystals available for purchase from May 16 to 31. An airdrop event with registration open until May 15 will precede the sales, giving users who complete missions a chance to win one of 600 normal ATEEZ Crystals. AVA will also host an event where ATEEZ members will answer eight selected questions submitted by fans.This fall, AVA will introduce a virtual space called Playground, enabling users to trade Crystals with each other and interact with artists through various activities.Additionally, participants in the ATEEZ airdrop event who fulfill tasks on social media will have a chance to enter a lucky draw for one of 30 exclusive ATEEZ photo card sets.

SBINFT and JPNFT Collaborate to Establish A Secure NFT Market in JapanSBINFT, a Japanese company specializing in NFT consulting and marketplace services, has joined forces with JPNFT, a Japanese platform dedicated to establishing a secure NFT market by combating unauthorized NFTs, according to a press release. Together, these entities are working towards the development of a marketplace that ensures users have access to secure and authorized NFTs, with the overarching aim of promoting the distribution of legitimate digital assets.Photo by Choong Deng Xiang on UnsplashRise of NFTsThe advent of blockchain technology has revolutionized the way digital assets are valued and their ownership is determined. This transformative technology has enabled the creation of non-fungible tokens (NFTs), which now serve as digital representations of various creations and are actively traded on dedicated marketplaces.Unauthorized NFTsSince 2021, numerous new players have entered the global NFT landscape. As of March 2023, OpenSea, the world’s largest NFT marketplace, boasts a monthly trading volume of $430 million. While this growth signals promising market development, it also brings forth challenges stemming from the proliferation of pirated and unauthorized NFTs. Considering Japan’s esteemed international reputation in the realms of art and content, the country possesses the potential to emerge as a significant player in the NFT market. However, to realize this potential, appropriate measures must be swiftly implemented to guarantee security and authenticity within the industry.License check & certification markIn order to tackle this challenge, SBINFT and JPNFT have joined forces to establish a safe and sound NFT market that ensures the availability of genuine NFTs for users. As part of this collaboration, content NFTs registered on the NFT disclosure information platform called “jpnft” will undergo a verification process for authenticity when traded on the “SBINFT Market.” This verification process will involve an official license check as well as the inclusion of a JPNFT certification mark.The launch of jpnft content on the SBINFT Market is planned for the summer of 2023. The jpnft platform plays a crucial role in distinguishing between licensed NFTs and unauthorized ones by publishing official information related to NFTs based on Japanese intellectual properties. Licensed NFTs will be either issued directly by rights holders or authorized by them. It’s worth noting that the jpnft platform was developed as a project supported by the subsidy for “Japan content localization and distribution (J-LOD)” in the 2021 Supplementary Budget of the Japanese Ministry of Economy, Trade and Industry.Previously known as nanakusa, the SBINFT Market is built on two public chains (Ethereum and Polygon) and is committed to becoming a global open marketplace and. With a focus on providing a secure trading environment, the SBINFT Market meticulously reviews NFTs to safeguard users from potential risks such as fraud and hacking.Both SBINFT and JPNFT share a common philosophy that emphasizes the security of NFTs and the healthy development of the industry. With this shared vision, the SBINFT Market aims to enhance its content offerings and position itself as an authorized NFT marketplace that handles NFTs on jpnft.Government initiativeLast month, the Working Group for Digital Society Promotion under Japan’s ruling Liberal Democratic Party (LDP) presented a proposal to Prime Minister Kishida Fumio regarding the Web3 industry. This proposal recommended the implementation of measures to safeguard Japanese content and data from unauthorized monetization by foreign entities. This initiative highlights the government’s endeavor to protect and promote the integrity of Japan’s digital assets.