Analysts expect crypto market cap to triple or more next year

CoinFLEX founder: creditors not to interfere with OPNXMark Lamb, the co-founder of failed crypto derivatives and yield platform CoinFLEX, has asserted that creditors of the company cannot interfere with OPNX, a Seychelles-incorporated company that Lamb has co-founded with Kyle Davies and Su Zhu, the founders of failed Singaporean crypto hedge fund, Three Arrows Capital (3AC).Photo by Chapman Chow on UnsplashFallout following writIt emerged in October that a group of CoinFLEX creditors had filed a writ of summons in the High Court of Hong Kong, claiming that OPNX, a new crypto bankruptcy claims trading platform linked to CoinFLEX, was established using CoinFLEX assets without their consent. While incorporated in the Seychelles, CoinFLEX ran its operations from Hong Kong.The writ alleges that Mark Lamb misappropriated assets, diverted clients and business opportunities and engaged in actions harmful to creditors during his tenure.The creditors argue that Lamb, while serving as CoinFLEX’s CEO, simultaneously devoted time and effort to setting up OPNX, contrary to his responsibilities. The allegations include diverting assets, falsely representing OPNX’s association with CoinFLEX creditors, disclosing confidential trade secrets and soliciting employees to move to OPNX.The legal action — filed by two companies, Liquidity Technologies and Liquidity Technologies Software — claims that OPNX’s formation was unauthorized and harmful to CoinFLEX creditors. Despite CoinFLEX’s terms of service requiring dispute resolution through arbitration in Hong Kong, the allegations have not been proven in the High Court of Hong Kong.Lamb addresses ‘Twitter FUD’In response to these creditor actions, earlier this week, Lamb took to X (formerly Twitter) to address what he termed as “Twitter FUD.” Lamb wrote:“The Hong Kong court ruled that the few CoinFLEX creditors behind recent ‘FUD’ must not disrupt or interfere with OPNX in any way — and their legal counsel has subsequently stopped representing them.”Lamb added that he hoped that CoinFLEX’s 4,800 creditors would choose the path that he has proposed on the basis that it “maximizes value.”OPNX has defended its position, emphasizing that it provided an opportunity for creditors to sell their claims on the exchange for quick cash, benefiting them. Davies and Zhu have pledged to donate their share of the profit to 3AC creditors.In February, OPNX CEO Leslie Lamb, Mark Lamb’s wife, announced the rebranding of CoinFLEX to Open Exchange (OPNX). However, the writ of summons claims that OPNX is a separate entity not authorized by CoinFLEX creditors. Leslie Lamb followed up in April by claiming backing from well-known entities in crypto venture capital, only for many of those mentioned to immediately refute such claims.The dispute has also implicated Roger Ver, a well-known character in the crypto space otherwise referred to as “Bitcoin Jesus.” Ver, a significant individual customer, was accused of defaulting by CoinFLEX. Ver denied defaulting and claimed that CoinFLEX used his trading positions against him, leading to a court-ordered arbitration.OPNX, since its launch in April, has obtained a Lithuanian license for spot trading in the EU and currently processes substantial daily trading volumes. Criminal and civil proceedings against OPNX co-founders Davies and Zhu are ongoing. The situation remains fluid as the legal dispute unfolds.

Abu Dhabi Puts Forward Legal Framework for Decentralized TechAuthorities in Abu Dhabi, the capital of the United Arab Emirates (UAE) as well as an individual emirate within it, have published a proposed legislative framework for distributed ledger technology.©Pexels/redouan khoulassiThe consultation paper, titled “Proposal for a legislative framework for distributed technology foundations” was published earlier this month by the Abu Dhabi Global Market’s (ADGM) Registration Authority.Promoting investor protectionThe document covers a broad spectrum of aspects relative to digital assets and crypto entities, including corporate governance, insolvency and restructuring considerations, and data protection. The ADGM’s objective with the proposed policy is to advance investor protection, improve market integrity and efficiency, and build towards a comprehensive regulatory framework.Specific proposalsMore specifically, the policy would implicate an enhancement in the protection of whistle-blowers who report misconduct relative to ADGM-regulated companies. Under the proposal, new rules would be introduced to ensure that digital asset platforms operate in a fair and transparent manner. A requirement would be placed on regulated companies to disclose detailed information in relation to beneficial ownership and control structures. Furthermore, the policy seeks to bring about an improved dispute resolution process between the stakeholders involved in ADGM-regulated transactions.Building upon an existing frameworkThe Abu Dhabi regulator’s current legal framework is built upon English common law. It has its own financial services regulator, the Financial Services Regulatory Authority (FSRA) which operates independently and is responsible for supervising and licensing financial institutions and market participants. The FSRA takes a principles-based approach, regulating those market actors attempting to maintain financial stability and integrity, promote market competition and innovation and ensure customer protection.ADGM has sought to act on an international basis by signing agreements with regulatory bodies in the UK, Hong Kong and Singapore, in an effort to enable information sharing and cross-border cooperation.Regulatory activityAt a national level, earlier this year the UAE enacted a digital assets regulatory framework. Earlier this week, the UAE also revealed a federal licensing system for crypto companies. In February, work began on a $2 billion initiative to nurture blockchain and Web3 startups via Hub71, the emirate’s tech ecosystem. The initiative provides startups with access to a broad range of support services as well as potential collaborations with government and investment partners.According to the document, “this Consultation Paper is of interest to any persons operating or planning DLT projects, persons engaging in digital asset-related activities and their legal advisors, as well as DLT participants, associations, and stakeholders.”With that, the ADGM is inviting comments and feedback from members of the public on the proposed changes contained within the consultation paper. To aid public comment, the policy document includes a number of questions that it invites stakeholders to consider as they work towards submitting their feedback.Those interested have until May 12 to take the opportunity to submit their comments and views relative to the Abu Dhabi regulator’s proposed framework.

New York Bans CoinEx While Seizing Crypto AssetsCoinEx, a Hong Kong-based cryptocurrency exchange, has been banned from operating in the US state of New York by Attorney General Letitia James. The ban comes after the exchange allegedly failed to register as a securities and commodities brokerage and falsely represented itself as an exchange.Photo by Jan van der Wolf on Pexels$1.7 million seizureThat’s according to a statement published by the Office of the New York State Attorney General on Thursday. As part of an agreement reached between the parties, over $1.7 million worth of CoinEx’s funds have been seized.Under the terms of the agreement, approximately $1.1 million will be returned to 4,691 investors from New York, and an additional $600,000 will be paid in penalties to the state. To prevent access by New York IP addresses, CoinEx must implement geo-blocking. Moreover, the exchange is forbidden from creating new accounts for customers based in the United States.Trade prohibitionThis recent development resolves a lawsuit filed against CoinEx in February by the New York state. The state accused the exchange of misleading investors and failing to register with local authorities. In accordance with the consent order, CoinEx is now prohibited from offering, selling, or purchasing securities and commodities in New York and cannot make its platform available in the state.James emphasized the consequences for crypto companies that disregard New York’s laws and put investors at risk. The agreement serves as a warning that her office will continue to crack down on such companies. CoinEx users have a 90-day period to recover their crypto funds directly from the exchange.After this period, eligible investors can request fiat currency refunds by emailing coinexrefund@ag.ny.gov. Refunds will be provided in cryptocurrency or cash equivalents held in accounts as of April 25.CoinEx faced a lawsuit in the New York Supreme Court on February 22, where Attorney General James alleged that the exchange engaged in fraudulent practices and violated the state’s Martin Act, known for its strict anti-fraud provisions. The complaint included tokens such as Amp, LBRY Credits (LBC), Rally (RLY), and Terra.Harsh stanceThe banning of CoinEx in New York highlights the regulatory scrutiny surrounding cryptocurrency exchanges and the importance of compliance with local laws and regulations. On the one hand, the enforcement actions taken by authorities aim to protect investors and ensure the integrity of the financial system.However, the state of New York has been particularly harsh in its dealings with crypto companies. As today’s statement reveals, the New York Attorney General has taken action previously against crypto exchange Kucoin, crypto lending platform Nexo, and USDT stablecoin issuer Tether.These actions tie in with the current anti-crypto regulatory pushback that prevails in the United States right now. Other state agencies, including the Securities and Exchange Commission (SEC) who last week sued global crypto exchanges Coinbase and Binance, the Federal Reserve, the Department of the Treasury, and the Federal Deposit Insurance Corporation (FDIC), have all conspired to crack down on the industry in the US in recent months.