BitGo CEO Emphasizes Separation of Trading and Custody to Prevent Crypto Bankruptcies

KDIC Seizes Crypto from Debtors Linked to Losses at Financial FirmsDuring the first half of this year, the Korea Deposit Insurance Corporation (KDIC) tracked the cryptocurrency holdings of 1,075 individuals and debtors responsible for causing losses at financial entities, including savings banks, according to documents obtained by local news outlet Herald Economy, from the office of lawmaker Kim Han-kyu, a member of the National Assembly’s National Policy Committee. From this scrutiny, KDIC identified 29 wrongful cases and proceeded to confiscate cryptocurrencies in 16 of those instances.KDIC is a semi-state body that has been instrumental in tracing and recovering assets from culpable employees at troubled financial firms and debtors in arrears. Meanwhile, methods for hiding wealth have become more sophisticated, typically unfolding behind the curtain.Photo by Georg Bommeli on UnsplashFirst crypto seizureOut of these individuals, 900 had taken out loans of at least KRW 3 billion ($2.2 million) from beleaguered financial institutions, while the remaining 175 were employees of these institutions, held responsible for their failures. This occasion represents the KDIC’s first seizure of virtual assets.Until recently, the KDIC struggled to reclaim hidden assets funneled into cryptocurrency exchanges, given their limited authority to seek documentation. KDIC’s purview mainly extended to requesting information from public institutions, banks, insurance companies, and securities firms. However, KDIC has now found a way to seize crypto assets by investigating the bank accounts linked to these exchanges. In Korea, crypto exchanges facilitating Korean won trades are legally mandated to secure real-name accounts from banks.Call for expanding KDIC’s authorityGiven the evidence of using cryptocurrencies to conceal wealth, many suggest that amendments to the Depositor Protection Act are necessary, enabling KDIC to directly request relevant data from exchanges and recover more hidden assets effectively.Furthermore in August KDIC secured a court order allowing them to liquidate these assets. Following this successful confiscation, the debtors’ cryptocurrencies have been frozen in their wallets, rendering them unresponsive to any market shifts. Discussions are now underway regarding the method of liquidating the debtors’ cryptocurrencies at market value on exchanges. This includes deliberations on whether KDIC will assume ownership of the cryptocurrencies and directly proceed with their sale.In a chat with Herald Economy, Lawmaker Kim emphasized the need for KDIC to have the authority to access information from virtual asset service providers. This would enable them to more effectively retrieve assets from responsible debtors. Kim further stated that such steps would enhance both the efficiency of debt collection and overall market fairness.

Wintermute Asia executes inaugural options block trade via CMEWintermute Asia Pte. Ltd, the digital asset derivatives trading arm of the well-known algorithmic trading firm and crypto market maker Wintermute Group, has successfully executed its first options block trade through the CME Group.The BTC/USD block trade was conducted in collaboration with U.K.-based liquidity and data solutions specialist TP ICAP. It was successfully cleared by ABN AMRO, marking a significant milestone for Wintermute Asia in the digital assets space.Photo by Kanchanara on UnsplashMeeting institutional investor needsInstitutional interest in secure and alternative avenues for exposure to digital assets continues to build momentum. It’s likely with that in mind that Wintermute Asia is strategically expanding its derivatives product offerings with this latest move. It’s also no surprise that Wintermute’s Singapore-based team was involved in this development, given a recent expansion of its Singapore base and the fact that its derivatives business is dealt with in Singapore.Presently, Wintermute Asia provides vanilla options in BTC, ETH and various altcoins, featuring expiration periods ranging from 1 day to 6 months. The platform also caters to more sophisticated needs with the inclusion of exotic options.Evgeny Gaevoy, CEO of Wintermute Group, expressed enthusiasm about Wintermute Asia’s evolving product offering, stating:“Wintermute Asia is excited to offer a range of OTC derivatives solutions to our counterparties that can accommodate all of their trading needs. Our growing suite of derivative instruments allows investors to easily hedge and manage risks, generate yield, and gain synthetic exposure to the underlying digital assets.”The move towards facilitating options block trades aligns with the increasing diversification of institutional portfolios into the digital asset sector. Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, emphasized the significance of the partnership with Wintermute Asia. He commented:“We are pleased to provide Wintermute and its counterparties with access to our highly liquid, regulated suite of benchmark cryptocurrency futures and options on bitcoin and ether.”Involving TradFi heavyweightsCME is a cornerstone TradFi financial derivatives exchange, first established in 1898 and headquartered in Chicago in the United States. Its CEO Terry Duffy pushed back against proposals from convicted fraudster and FTX Founder Sam Bankman Fried in 2022 to alter the futures clearing model on the basis that such a move would introduce significant risk into the financial system. A year on from the failure of FTX and many other crypto platforms, a move towards involving established TradFi firms like CME, as Wintermute is doing, is far more appealing to institutional investors.Sam Newman, Digital Assets Head of Broking at TP ICAP, acknowledged Wintermute as another participant in block trading CME Group cryptocurrency products. TP ICAP, a key player in digital asset broking services since 2020, has been instrumental in price discovery and liquidity through global coverage on regulated exchanges. Newman expressed excitement about witnessing crypto-native firms like Wintermute accessing traditional products and services, indicating the market’s maturation.Earlier this year, CME Group upgraded its BrokerTec Stream from version 1.5 to 2.0. The upgrade aims to enhance performance and reduce latency for clients, introducing features such as sweepable matching and firm price improvements. Recently, CME became the second largest bitcoin futures exchange, second only to global crypto exchange Binance.

North Gyeongsang Province Recruits Youth for Metaverse Content CompetitionNorth Gyeongsang Province has announced that it is recruiting participants for the Youth Metaverse Content Development Competition, which will provide young people with an opportunity to showcase their ideas and technical skills in the metaverse.Photo by GuerrillaBuzz on UnsplashThe competition is part of the Youth Metaverse Creation Festival, which aims to push young individuals to participate directly in policymaking, prepare for their crucial role in the oncoming metaverse era, and strengthen their digital capabilities.Participation requirementsParticipants are required to complete an assignment in the form of their choice related to fields that the youth are interested in. Young people from high schoolers up to those aged 34 are eligible to participate. Both Korean nationals and foreigners are invited to sign up either individually or as a team.Eight teams will be selected in the first round of document evaluation this month. Afterward, a second round of presentations will take place in October to choose the three final participating teams.Winning rewardsThe first round of selected teams will receive 3 million KRW (approximately $2,300) for their assignment and a head-mounted display, among other benefits. The finalists will not only be awarded 6 million KRW but also be given the chance to participate in various startup support programs throughout North Gyeongsang Province through expert consultations.