SEC Seeks to Question Co-Founder of Singapore’s Terraform Labs

China has provided insights into the conviction of Zhao Dong, the influential crypto over-the-counter (OTC) trader and widely known founder of the RenrenBit crypto trading desk. The ‘OTC King’Last Wednesday, China’s Supreme Procuratorate disclosed that Zhao, known as the "OTC King," was handed down a substantial prison sentence for engaging in illegal foreign exchange and crypto business operations. The case is emblematic of China's persistent efforts to clamp down on cryptocurrency trading, even when conducted through less transparent channels like OTC desks, private chat groups and stablecoins.Photo by Hanson Lu on UnsplashTracing fundsIn their comprehensive disclosure, the Chinese authorities outlined the meticulous investigation that led to Zhao Dong's conviction. The focus was on tracing fund movements across Chinese bank accounts, overseas cash pools and the circulation of Tether and Bitcoin. Investigators honed in on accounts associated with Zhao Dong and the chat groups used for trading activities. Their arsenal included detailed bank records, WeChat conversations, testimonies from Zhao's OTC agents and other documentary evidence. The report highlighted that all defendants, including Zhao Dong, confessed to the process of collecting dirhams in cash in Dubai, paying RMB to the other party's designated account, buying Tether with dirhams, and allowing the domestic gang to illegally sell it back for RMB. Seven year sentenceIn one of the alleged schemes, Zhao Dong purportedly orchestrated crypto-fiat trades between Dubai-based entities holding cash piles in United Arab Emirates (UAE) dirhams and Chinese contacts within the country. With numerous related recipients confirming that the funds Zhao received were payments from foreigners, the prosecution's case was made so much stronger. Zhao unsuccessfully argued during three public court hearings that his actions constituted digital currency transactions and not a breach of foreign exchange laws. The prosecution countered with evidence from the group's chat records, emphasizing the nature of foreign exchange in their dealings. The court ultimately rendered a verdict, sentencing Zhao Dong to seven years in prison and imposing a 2.3 million Chinese yuan ($325,000) fine. This conviction serves as a stark reminder of the stringent regulatory stance that China has adopted towards cryptocurrency trading. Zhao Dong was considered one of China's most influential OTC crypto traders. He was a Bitfinex shareholder and founder of the D Fund venture capital fund. He established RenrenBit in August 2018, incorporating the company in Singapore. The influential crypto trader is also believed to have been involved in assisting stablecoin-issuer Tether to launch its Tether Yuan product. However, once the authorities moved against him, RenrenBit was taken offline while Tether scrapped its pursuit of Tether Yuan. Despite his influence, Zhao has ultimately become a symbol of the government's commitment to curbing such crypto trading activities within mainland China. The outcome underscores the severity of China's regulatory crackdown on cryptocurrency trading and sends a strong message to other players in the crypto space within the country.

South Korean retail investors are pulling back from cryptocurrencies after months of falling prices, rotating capital into domestic equities in a sharp reversal from last year’s trading boom, according to a report by Bloomberg.Photo by Timothy Ries on UnsplashCrypto prices have declined since October, leaving many individual traders nursing heavy losses. In January, trading volumes on local exchanges have dropped roughly 65% year-on-year. By contrast, trading value on the KOSPI, the primary benchmark index of Korea's stock market, has surged 221% over the same period, reflecting a decisive shift in retail risk appetite. Korean investors—who had heavily favored volatile altcoins—are now reallocating funds into domestic and overseas equities, particularly artificial intelligence and robotics stocks. Brokerage margin balances have surpassed 30 trillion won ($20.8 billion), suggesting speculative capital has migrated rather than disappeared. South Korea has long been one of the world’s most retail-driven crypto markets, with individual investors playing an outsized role in price formation and trading volumes. The recent downturn, however, has exposed the risks of a market concentrated in smaller tokens. The rotation back to equities has also coincided with political momentum around boosting the stock market, including President Lee Jae-myung’s pledge to push the KOSPI toward 5,000. Ownership limits spark debateAs retail enthusiasm cools, regulatory questions are moving to the forefront. A debate has emerged over potential limits on major shareholders’ stakes in crypto firms—a proposal that has stirred controversy over governance and competitiveness. According to MoneyToday Broadcasting MTN, Democratic Party lawmaker Min Byoung-dug recounted a recent dinner conversation in Seoul in which Eric Trump, the second son of U.S. President Donald Trump, reportedly reacted skeptically to the idea. Trump was said to have questioned whether such ownership restrictions would be conceivable in the United States. Supporters argue that ownership caps could strengthen oversight and reduce excessive concentration of control in crypto firms. Critics warn they could deter investment and weaken Korea’s position in an increasingly competitive global market. Innovation continues despite slowdownEven as crypto volumes shrink, financial innovation tied to digital assets is pressing ahead. Decentralized exchange Lighter said on X that it will support perpetual futures contracts linked to major Korean equities. The products include exposure to Samsung, SK Hynix, and Hyundai, as well as a KOSPI index-based contract with 10x leverage. The move reflects a broader convergence between crypto platforms and traditional financial assets.  Regional competition intensifiesKorea’s regulatory direction is also being watched across Asia. Speaking at the Consensus Hong Kong, lawmaker Johnny Ng said the city could draw lessons from South Korea and the United Arab Emirates in shaping its crypto framework. According to CoinDesk, he noted that the UAE has established a robust regulatory structure with dedicated oversight, while Korea operates a government body tasked with supervising crypto activities. As financial centers compete to attract crypto businesses, clarity in regulation has become a strategic differentiator. For now, Korea’s crypto market appears to be recalibrating rather than collapsing—with retail traders retreating, policymakers debating guardrails, and new leveraged products testing the boundaries of innovation. Whether this marks a transition toward a more mature phase or merely a pause in speculative fervor may depend on how the country balances investor protection with growth. 

MANTRA, a real-world asset (RWA) layer one blockchain built on Cosmos, recently outlined its vision for the on-chain financial ecosystem, outlining that it plans to acquire licensing in the Middle East and Asia as part of its efforts to expand. In a press release published on Chainwire on March 14, the company outlined that it has applied for licensing in the United Arab Emirates (UAE) in an effort to pave the way for MANTRA to target a global clientele who want to harness the potential of RWA asset tokenization. Issuing and trading tokenized RWAsAt the core of the Hong Kong-headquartered project’s offering lies its layer one blockchain, aptly named MANTRA Chain. The network is designed to streamline the issuance and trading of tokenized RWAs. Having established this technological product base, the company is now on a mission to onboard financial institutions and commercial entities with an interest in asset tokenization. With teams stationed in Hong Kong and the UAE, MANTRA has honed a full understanding of the shifting regulatory landscapes in pivotal regions. By securing its inaugural financial licenses in the UAE, MANTRA is aiming to take a slice of market share in the swiftly evolving RWA sector across the Middle East and Asia. The overarching goal for 2024 is to tokenize a diverse spectrum of assets, spanning real estate, private market funds, equity, art and treasuries.Photo by Sigmund on UnsplashIn an X social media post, MANTRA Founder and CEO John Patrick Mullin outlined that the company is already engaging with institutions and partners in the private sector. Mullin stated: “MANTRA is actively collaborating with real-world institutions and partners, including real estate, private market funds, private equity, the art sector, and treasuries, among others, to help bring these traditional asset classes onchain.” Mullin claims that the current crypto market capitalization of around $2 trillion is just a drop in the ocean by comparison with the potential that exists in the tokenization of RWAs and in unlocking the RWA economy. Hong Kong licensingAlongside the Middle East, Asia is the other target market for the company. Mullin suggested that Asian countries are already preparing for this fundamental shift, having developed RWA regulations. Last November, it emerged that Hong Kong was setting out a regulatory roadmap in respect of RWA tokenization. In February 2023 the Chinese autonomous territory achieved a first-of-its-kind tokenized green bond issuance.With that, the company’s home base of Hong Kong will also be central to its efforts to acquire relevant licensing. In recent weeks, MANTRA claims to have made significant progress in decentralizing its network, garnering validator support on a more broadly distributed basis. The project is expected to launch its final testnet, dubbed “Hongbai,” shortly. MANTRA is aiming to emerge as the pioneer RWA layer one blockchain with the capability to ensure real-world regulatory compliance. By expediting the adoption of tokenized RWAs, the project suggests that there’s an RWA economy value unlock potential of $16 trillion with its regulatory-ready blockchain being positioned to benefit from that. The network is gearing to offer a compliant framework, so that traditional finance (TradFi) companies can seamlessly transition to and harness asset tokenization and blockchain solutions, propelling global RWA expansion.