Intella X Partners With Aptos Foundation to Accelerate Growth of Web3 Gaming

Genesis Ordered to Comply with Subpoena in Terraform Labs CaseGenesis, the troubled crypto lender and trading company, has been issued a compelling directive by a New York court. The court has mandated Genesis to comply with a subpoena within five days, following a failure to respond to previous requests by the October 9 deadline, relative to a case involving Singapore’s Terraform Labs.Photo by Michael Discenza on UnsplashTerraUSD collapse falloutThese requests are related to the 2022 collapse of the TerraUSD stablecoin, a cryptocurrency which was supposed to maintain a peg to the US dollar’s value until it lost that peg and collapsed. At the time, the demise of TerraUSD reverberated throughout the cryptocurrency markets.In response to this collapse, the US Securities and Exchange Commission (SEC) initiated a legal action against Terraform Labs, the company responsible for the token, and its co-founder Do Kwon, alleging that investors had been misled. Both Do Kwon and Terraform subsequently tried unsuccessfully to have the case dismissed.As part of the progression of this case, the SEC sought to question Do Kwon and gain access to company records held by the Singapore-headquartered firm. The defendants were ultimately unsuccessful in arguing their case in that instance on jurisdictional grounds.Failure to respondJudge Jed Rakoff, in a court order filed on Friday, highlighted Genesis’s non-compliance with the subpoenas, stating:“As of today, the Genesis Entities have failed to produce any documents in response to the Subpoenas.”These subpoenas were issued by the defendants to seek specific information from Genesis Global Capital, Genesis Global Holdco, and Genesis Global Trading on September 12.The court order does not specify the nature of the information sought. It is worth noting that Genesis extended substantial loans to the now-defunct hedge fund Three Arrows Capital (3AC), which was heavily exposed to the TerraUSD stablecoin. In January 2023, three Genesis entities filed for bankruptcy, and its trading arm ceased its US spot market operations in September.In addition to the challenge posed by Genesis’ non-compliance, Judge Rakoff is also wrestling with obtaining information from Do Kwon in connection with the legal proceedings. Kwon’s legal representatives have argued that he cannot physically come to the US as he is serving a jail sentence in Montenegro for possession of a counterfeit passport.However, Judge Rakoff has expressed his determination to ensure Kwon’s availability for cross-questioning and stated that Kwon will not be allowed to provide any declarations in the case without being subject to cross-examination.Citadel under scrutinyIn a related development, it emerged last week that Terraform Labs is accusing American market maker Citadel Securities of having sabotaged its TerraUSD stablecoin. As part of the Singaporean company’s pursuit of justice, it has called upon the United States District Court in the Southern District of Florida to force Citadel to furnish specific documents that relate to their trading activities during the period within which TerraUSD collapsed.Should it fail in that endeavor, Terraform has said that it will look to have the matter heard in Judge Rakoff’s court in New York.This legal development concerning Genesis marks a crucial juncture in the ongoing investigation into the TerraUSD stablecoin’s collapse and the actions of the entities involved, with Genesis now facing increased pressure to cooperate fully with the legal process.

Korean Financial Authority Orders Suspension and Levies $1.4M Fine on Crypto Lender DelioDelio, a cryptocurrency lending company based in South Korea, has received a directive from the financial regulatory authority to cease its operations for a duration of three months, according to local news agency Yonhap. Additionally, the company has been levied with a fine amounting to KRW 1.896 billion ($1.4 million).Photo by Riva Ferdian on UnsplashExecutive dismissal recommendedThis announcement was made on September 1 by the Financial Intelligence Unit (KoFIU) under the South Korean Financial Services Commission. In addition to the measures mentioned above, the KoFIU advised the company to remove one of its executives.As a virtual asset service provider (VASP) registered with the financial regulatory authority, Delio offered deposit services with an annual yield reaching up to 10.7%. However, in June of this year, the company abruptly halted its withdrawal services, prompting investigations conducted by both the KoFIU and public prosecutors.Involvement with unregistered VASPsThe KoFIU saw that Delio had engaged in trading activities with unregistered VASPs and had also breached the restrictions on the trading of affiliate-issued virtual assets. These actions are prohibited under the Financial Transaction Information Act.The financial authority identified a total of 171 instances in which Delio facilitated the transfer of its customers’ virtual assets to unregistered VASPs located outside the country. Additionally, the authority also uncovered the company’s engagement in storing the virtual assets of unregistered VASPs.It was also discovered that Delio had not only neglected to assess the risks of money laundering before introducing new products or services but had also failed to fulfill Know Your Customer (KYC) obligations.

Japan is moving to pull its cryptocurrency market firmly inside the regulated financial system. A bill approved by the cabinet this month would reclassify digital assets as financial products, while separate developments in blockchain infrastructure and corporate treasury strategy suggest the shift extends well beyond Tokyo's rulebook. The cabinet approved the bill on April 10 to amend the Financial Instruments and Exchange Act, according to Nikkei. The legislation would bring cryptocurrencies under the regulated financial system and mark a departure from the previous framework, which had largely treated them as payment instruments under the Payment Services Act.Photo by Louie Martinez on UnsplashTighter rules take shapeIf enacted, the new rules could take effect as early as 2027. They would prohibit insider trading based on undisclosed information, require issuers to file annual disclosures, and redesignate licensed firms from "crypto-asset exchange operators" to "crypto-asset trading operators." Penalties for operating an unregistered business would also be stiffened, with maximum prison terms raised to 10 years from three and fines increased to 10 million yen ($63,000) from 3 million yen ($19,000). The changes align with the government's broader effort to strengthen market integrity, transparency, and investor protection. The regulatory tightening comes as firms work to build compliant blockchain infrastructure. SBI Ripple Asia, a joint venture between SBI Holdings and Ripple, announced on April 7 that it had completed development of a token issuance system based on the XRP Ledger. The company described the project as financial infrastructure for issuing and managing prepaid payment instruments as tokens on a public blockchain. Such instruments, regulated under current Japanese law, could be handled via apps, websites, and APIs. SBI Ripple Asia added that it completed regulatory registration on March 26 as an issuer of third-party prepaid payment instruments. Corporate treasuries expand crypto betsListed companies are also increasing their exposure to digital assets. WIZE, a Tokyo-listed firm formerly known as Mobcast Holdings, reported holdings of 24,597 SOL as of April 10, valued at roughly $3.13 million (about 498 million yen). The company had announced in October 2025 that it would begin building a Solana reserve, and the latest disclosure suggests corporate crypto holdings in Japan are expanding beyond Bitcoin (BTC).Metaplanet remains the most aggressive example of the trend. Chief Executive Simon Gerovich said on X that the company purchased 5,075 BTC in the first quarter and now holds 40,177 BTC, acquired for a cumulative 623.37 billion yen ($3.92 billion) at an average purchase price of 15,515,598 yen ($97,600) per coin.