TRES secures $11M funding to expand multi-chain tax reporting

Do Kwon, a South Korean national and the central figure in the 2022 collapse of the Terra blockchain ecosystem, was sentenced to 15 years in prison on Dec. 11, capping a federal case that exposed a multibillion-dollar scheme built on false promises and secret market manipulation. According to a U.S. Department of Justice press release, District Judge Paul A. Engelmayer handed down the sentence in Manhattan federal court, finding that the 34-year-old orchestrated a scheme that inflicted substantial losses on both retail and institutional investors.Photo by Tingey Injury Law Firm on Unsplash"This was a fraud on an epic, generational scale. In the history of federal prosecutions, there are few frauds that have caused as much harm as you have, Mr. Kwon," Engelmayer said, according to Reuters. Kwon, who was extradited to the U.S. in December 2024 following his arrest in Montenegro, pleaded guilty in August. Addressing the court, he acknowledged the devastation caused by the collapse. "All of their stories were harrowing and reminded me again of the great losses that I’ve caused. I want to tell these victims that I am sorry," Kwon said. A house of cardsAccording to court filings, Kwon’s deception ran from 2018 through 2022, misleading investors regarding the stability of the algorithmic stablecoin TerraUSD (UST), the LUNA token, and the independence of the Luna Foundation Guard. Prosecutors outlined a pattern of fabrication across Terraform’s products. When UST lost its $1 peg in May 2021, Kwon claimed an automated "Terra Protocol" restored balance. In reality, investigators found the company secretly utilized a high-frequency trading firm to prop up the price, creating a "false impression" of the system’s resilience. The fraud extended to Terraform’s partnerships and applications. Investigators said Kwon lied about the South Korean payments platform Chai, claiming its transactions were settled on the Terra blockchain. Instead, Chai used traditional payment networks, with Terraform simply copying data to the blockchain to feign integration. Similarly, Kwon allegedly manipulated the Mirror Protocol, a platform for synthetic stock trading. While touting it as decentralized, prosecutors said he used bots, funded by stablecoins he created, to inflate volume and manipulate asset prices. The collapse and captureBy spring 2022, the ecosystem’s value exceeded $50 billion. However, when UST broke its peg again in May 2022, Terraform could not artificially restore it. The resulting crash erased at least $40 billion in value and triggered a contagion across digital-asset markets. While Kwon publicly claimed cooperation with authorities during the fallout, prosecutors introduced recordings suggesting he privately explored seeking political protection to avoid accountability. He was eventually arrested in Montenegro in March 2023 for traveling on a fraudulent passport. In addition to the prison term, Judge Engelmayer ordered Kwon to forfeit over $19 million, including interests in Terraform and its digital assets. The case was investigated by the Federal Bureau of Investigation (FBI) with assistance from Montenegrin and South Korean authorities. The Securities and Exchange Commission (SEC) has filed a separate civil action. Global crackdown widensWhile the U.S. concludes the Kwon case, scrutiny of the crypto sector is intensifying abroad. DL News, citing the Belarusian outlet Onliner, reported that Belarusian authorities have blocked access to digital asset trading platforms Bybit, Bitget, and OKX. The Ministry of Information cited the Mass Media Act for the decision, though KuCoin and Binance remain accessible. The step contrasts with President Alexander Lukashenko’s earlier support for developing a national crypto reserve and mining sector. Meanwhile, the Belarusian arm of Russia’s Sputnik reported that State Control Committee chairman Vasily Gerasimov recently put in place a record system identifying wallets authorities suspect are used for criminal money laundering. 

Crypto.com’s Dubai-based subsidiary secures crypto licenseCRO DAX Middle East, the Dubai-based subsidiary of Singapore-headquartered cryptocurrency exchange platform Crypto.com, has achieved a significant milestone by obtaining a license from the emirate’s Virtual Assets Regulatory Authority (VARA) to provide specified virtual asset services.Photo by Timo Volz on UnsplashExpanding product offering in DubaiThe approval, announced by the firm via a press release published to its website on Tuesday, marks a pivotal moment for the Singapore-based Crypto.com, allowing it to offer regulated virtual asset services in Dubai, including exchange services, broker-dealer services, management and investment services as well as lending and borrowing services.The virtual assets service provider (VASP) license is contingent upon CRO DAX Middle East meeting specific conditions and localization requirements outlined by VARA. Once these conditions are satisfied and the operational approval notice is received from the regulator, the company will be poised to commence operations. These services will be made accessible to both retail and institutional users through Crypto.com’s app and exchange platform.Kris Marszalek, CEO of Crypto.com, expressed his enthusiasm for Dubai’s regulatory approach, stating: “Dubai continues to show it is a leading market when designing effective regulation for the crypto space while still supporting adoption and innovation.”Dubai’s virtual asset sector developmentThe regulatory framework for virtual assets in Dubai was established under the Dubai Virtual Asset Regulation Law in March 2022, leading to the creation of VARA. Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, founded VARA with the aim of developing an advanced legal framework to safeguard investors. Furthermore, the objective was to set international standards for the governance of the virtual asset industry, while fostering responsible business growth.VARA issued regulations in February to provide clarity and certainty on the expected level of operator responsibility and to mitigate market risks. This move aligns with the broader context of global cryptocurrency regulations, aiming to create a safe environment for investors in the wake of recent collapses of major platforms.Crypto.com is working to become one of the first virtual asset exchanges to implement its VASP license in accordance with VARA’s specialized regulations issued earlier this year. The company had previously received its minimum viable product provisional license in June 2022 and the MVP preparatory license in March of the current year. The operational license, which follows the preparatory and provisional stages, grants virtual asset service providers permission to conduct activities in seven specified categories.Adapting to the marketThe company has also been working on licensing in other markets. In Singapore, where it is headquartered, the company received a Major Payment Institution (MPI) trading license from the Monetary Authority of Singapore (MAS) in June. The company has also re-calibrated its offering based on market shifts. Earlier this year, it halted its institutional exchange service in the United States due to a downturn in institutional demand stateside.In March 2022, Crypto.com declared Dubai as its regional hub for the Middle East and North Africa (MENA), solidifying its commitment to expanding its presence and contributing to the growth of the cryptocurrency ecosystem in the region.

Hana Bank Teams Up with Content Distributor Danal Ent to Establish Security Token EcosystemHana Bank and Hana Securities, affiliates of South Korea’s renowned Hana Financial Group, have recently entered into a business agreement with content distributor Danal Entertainment as reported by local news outlet Newsis. The purpose of this collaboration is to establish a security token ecosystem centered around content and explore mutually beneficial business prospects.Photo by Shubham Dhage on UnsplashIP-backed security tokensUnder this agreement, their security token ecosystem will leverage Danal Entertainment’s diverse intellectual properties (IPs) associated with music, movies, goods, and concerts. Through the tokenization of copyrights, patents, and trademarks, the collaborative group aims to introduce cutting-edge digital financial services that provide convenient and user-friendly means of purchasing and managing a wide range of tangible and intangible assets.Legislative push in parliamentTheir collaboration aligns with the ongoing efforts within the Korean financial authority and political circles to promote security token legislation. It was reported earlier that proposed amendments to the Electronic Securities Act and the Capital Markets Act, which aim to legalize security tokens, will be submitted to the National Assembly later this month.Choi Won-young, the Managing Director of the Digital Division at Hana Securities, emphasized that this partnership seeks to establish a successful security token business model within the content and entertainment sector. Furthermore, he expressed the company’s commitment to delivering innovative digital financial services that utilize content-based security tokens, thereby creating new experiences and value for customers.Lim Yoo-yup, the CEO of Danal Entertainment, highlighted their aspiration to revolutionize the Korean content industry by streamlining the process of content creation and consumption. The expectation is to introduce a new paradigm in the industry by making it easier for users to engage with content.Danal’s setback and resilienceMeanwhile, Danal Entertainment’s parent company, Danal, reported a net loss in the first quarter of this year, primarily attributed to the decline in the value of Paycoin (PCI). PCI is the native token of PayProtocol, Danal’s crypto payment platform. The loss was largely a result of PCI’s delisting from the member exchanges of the Digital Asset eXchange Alliance (DAXA). DAXA consists of the nation’s five largest crypto trading platforms: Upbit, Bithumb, Coinone, Korbit, and Gopax.Despite this setback, Paycoin (PCI) has managed to secure trading support from cryptocurrency exchanges Huobi, OKX, Bitget, and GDAC. Furthermore, Danal is taking measures to remedy the situation. They are focusing on providing major cryptocurrency payment solutions and wallet services within the Korean market, seeking listings on foreign crypto exchanges, and expanding their presence in global markets.Hana’s blockchain initiativesIn a separate development, the Hana Financial Group has recently been actively promoting businesses utilizing blockchain technology. Earlier this month, Hana Bank joined forces with Korean blockchain firm Trackchain to develop and operate a platform that facilitates art banking services based on Web3 technology. These services involve the exhibition, advertisement, and distribution of artworks.