Real-World Asset Investment Platform Alterna Launches in Japan

Scroll’s zkEVM Launches on Ethereum MainnetScroll, the Seychelles-headquartered project behind the Ethereum layer-2 network of the same name, has officially made its debut on the Ethereum mainnet.Photo by Zoltan Tasi on UnsplashAttempting to solve for scalabilityThe project team announced the development via a press release which was published on Tuesday. The network launch signifies the latest in a series of attempts by various layer-2 projects, including Polygon and StarkWare, to address the persistent challenges of high transaction fees and network congestion that have hindered Ethereum’s usability in recent times. Speaking to layer-2 development, co-founder Sandy Peng stated:“We see a future where the vast majority of value transfer takes place on Layer 2s on Ethereum. What will drive that adoption is improved user and developer experience.”After testing and refinement on its testnet, Scroll believes that it is in a good position to play an active role within the Ethereum ecosystem by providing a general-purpose, zero-knowledge Ethereum virtual machine (zkEVM) roll-up.The project has 900,000 wallet addresses in active use on its testnet, having executed seven million transactions since August. The testnet has seen over 55 million transactions during its year-long operation.At its core, Scroll’s mission is to combine Ethereum’s network security with reduced fees and lower latency, making it an attractive proposition for existing Ethereum projects. According to Peng, Ethereum developers can seamlessly deploy their projects on Scroll and harness the groundbreaking zkEVM technology.Incorporating bytecodePeng emphasized the significance of zkEVM’s ability to batch proofs efficiently, resulting in faster transaction speeds and cost reductions, thanks to its bytecode-level compatibility.Bytecode, in the realm of computer programming, simplifies intricate machine cryptography, making code more accessible for computer hardware. Scroll allows deployed smart contracts to store the bytecode of their transactions, which is then sent to a centralized zkEVM node. This node verifies the transaction’s accuracy without revealing its content. Once verified, the transaction’s status is updated on the Ethereum network, eliminating the need for re-execution. Peng pointed out:“Thanks to this feature, Ethereum devs can leverage all the same tools they are familiar with, ensuring that everything operates seamlessly right from the start.”Scroll’s mainnet code was subject to audits conducted by four major auditing firms, namely Zellic, Trail of Bits, OpenZeppelin, and KALOS, in an effort to ensure robust security and reliability.Efforts towards greater decentralizationWhile Scroll’s current implementation offers compelling features, the team is actively researching ways to further enhance the network’s decentralization. Currently, if the sequencer goes offline, the protocol halts, creating a potential vulnerability. To address this, the Scroll team is working on a protocol upgrade that will enable “forced batches.” This update will allow permissionless publication of batches through the base layer, even in the event of a sequencer halt.Peng elaborated on the team’s vision, stating: “Mid-term, the goal is to minimize the probability of a sequencer halt through decentralization.” This approach aims to bolster the network’s resilience and ensure a smoother user experience.While headquartered in the Seychelles, the project has its origins in China through its Chinese founders, Ye Zhang and Haichen Shen, alongside Peng, with many of its 60-strong project team based in mainland China and Hong Kong.

A Chinese creditor of failed crypto exchange FTX has filed an objection on his own behalf and that of 300 others, with a U.S. bankruptcy court against a motion lodged with a view towards excluding payouts to creditors resident in China, Russia and 47 other foreign jurisdictions.Photo by Mariia Shalabaieva on UnsplashPotential distribution forfeitureThe FTX Recovery Trust, an entity formed in January to oversee the FTX bankruptcy estate following the adoption of a plan of reorganization, filed a motion last week seeking the approval of the Delaware Bankruptcy Court in the United States to adhere to new parameters related to the claims of creditors residing in restricted overseas jurisdictions. Besides China and Russia, the list of restricted jurisdictions also includes many within the Asian region, including  Afghanistan, Iran, Iraq, Macau, Myanmar (Burma), Nepal, North Korea, Pakistan, Qatar, Bangladesh and Cambodia. The FTX estate claims that these jurisdictions have regulations and laws restricting cryptocurrency transactions. In such cases, the FTX Recovery Trust claims that it cannot break local laws.  The difficulty for creditors resident in these countries is that if it's deemed illegal to reimburse them, they won’t qualify for the next scheduled distribution from the estate. In that instance, distribution forfeiture will be triggered. Taking to X on July 7, FTXcreditor.com, an entity that has been buying up bankruptcy claims from FTX creditors over the course of the FTX bankruptcy process, highlighted the peril that creditors residing in these restricted countries may face. It stated: “Distribution forfeiture is triggered at every distribution record date. The first record date already passed, if your claim is still tied to a local KYC when the stamp drops, that tranche is potentially gone.” Short timeframe for objectionsMr. Purple, a pseudonymous distressed assets bankruptcy professional who has been advocating for FTX creditors since the collapse of the business in November 2022, concurred with this view in a subsequent post on X. He pointed out that an extremely short timeframe has been given to affected creditors to respond. The motion was filed on July 2 and objections are due by July 15. $500 million in claims are at stake which accounts for 5% of all creditor claims. Of this, 82% of these claims belong to Chinese creditors. In a series of follow-up posts, the bankruptcy professional describes several procedural issues that he believes will result in it being incredibly difficult for affected creditors to have their funds reimbursed.Mr. Purple concludes:”The incentives are designed to be extremely risk averse in finding [a legal opinion] that paying creditors is legal! [The estate’s lawyers will] take the fees and say its not legal.” In his court filing, the Chinese creditor, who is resident in Singapore, stated: “My family holds four KYC-verified accounts with aggregate claims exceeding $15 million USD.” . . . “We have fully complied with every procedural requirement under the Plan. The proposed motion now jeopardizes our right to distribution in an arbitrary and inequitable manner.” On X, he asserted that the FTX Recovery Trust’s motion “constitutes an impermissible and material modification of the Plan.” Aside from legal action, the only other potential solution for creditors residing in restricted countries is to sell their claims. However, claims buyers are pricing in greater risk with lower rates and less favorable terms.

Leading cryptocurrency exchange OKX has acquired an in-principle approval from Singapore’s financial regulatory authority for a Major Payment Institution (MPI) license through its local arm, OKX SG.Photo by Mark Stoop on UnsplashEnabling broader service offeringAccording to a blog post published by the company on March 12, OKX confirmed the receipt of in-principle approval for the coveted license. The MPI license, issued by the Monetary Authority of Singapore (MAS), Singapore's primary financial regulatory body, represents an important step forward for the company. Once granted the full license, OKX will be empowered to offer digital payment token services and facilitate cross-border transfers within Singapore. A plethora of OKX executives took to social media to comment on the achievement. Hong Fang, President of OKX, expressed the company's long-standing interest in Singapore, describing it as a cornerstone of its global strategy. Fang emphasized Singapore's appeal to entrepreneurial ventures, citing its tech-savvy populace as early adopters. She praised the country's regulatory framework as "clear and thoughtful," enabling businesses like OKX to cultivate sustainable growth over the long term. With this regulatory approval, OKX intends to concentrate on bolstering its spot product offerings in the Singaporean market. Fang outlined plans to forge local banking partnerships to enhance customer experiences and expand service offerings in the future. In summarizing the company’s outlook, Fang wrote that OKX is looking to “build locally. Be compliant. Invest long-term.” OKX CEO Star Xu suggested that the firm intends to be a “long-term member of the Singapore fintech community” as a consequence of the approval. Global market expansionThe company’s CMO, Haider Rafique, pointed out that this latest license approval follows hot on the heels of further expansion in venues like Dubai, Argentina and Turkey. The in-principle license approval follows OKX's recent acquisition of a conditional license from Dubai’s cryptocurrency regulatory authority. On Jan. 16, the Virtual Assets Regulatory Authority (VARA) of Dubai granted OKX a license, enabling the exchange to provide regulated services as a virtual asset service provider within the region.On Feb. 27 the firm launched OKX TR, catering to the needs of crypto users in Turkey. In the same month, the company launched its services within the Argentinian market. MPI-licensed entities like OKX enjoy the privilege of facilitating multiple payment services, surpassing volume limitations prescribed for standard payment firms. This flexibility allows OKX to transcend the prescribed limits of three million Singapore dollars ($2.2 million) for individual payment services and a monthly cap of SG$6 million ($4.4 million) for multiple services. Joining OKX in the pursuit of regulatory compliance, BitGo, a prominent crypto custody business, also received an in-principle approval from MAS. BitGo announced on Jan. 10 that it had secured initial approval, subject to fulfilling additional requirements stipulated by the regulator. Several other notable cryptocurrency entities, including Crypto.com, Coinbase and Ripple, have already obtained complete payment institution licenses in Singapore. OKX's attainment of in-principle approval underscores the ongoing drive among market participants towards regulatory compliance and expansion into key markets. The move should help the firm to position itself well for further market growth as the digital assets space continues to progress.