Digital asset insurer funds Middle East expansion

Former FTX COO Finds New Role at Sino GlobalConstance Wang, previously known for her executive roles at FTX, has recently joined crypto venture capital firm Sino Global Capital.That’s according to sources Bloomberg cited in a recent report as being familiar with the matter. Wang held the role of Chief Operating Officer at FTX and was also the Co-Chief Executive Officer of FTX Digital Markets, the affiliate of the now-defunct crypto exchange, which was based in the Bahamas. Her responsibilities at FTX included overseeing global business expansion, token listings, and public relations and marketing.Following the collapse of FTX and its sister trading firm Alameda Research, Wang has reportedly spent a significant amount of time in China, according to an undisclosed source.Sino Global Capital, founded in 2015 by Beijing-based American investor Matthew Graham, had revealed its early investment in FTX after the exchange’s collapse. The management team stems from a background in consulting, Wall Street, private equity, government, and corporate spheres. A year prior, the venture capital firm launched a $200 million fund with FTX as a key investor. Sam Bankman-Fried, the Founder of FTX, expressed gratitude for Sino Global’s support, stating that they believed in the FTX vision from the beginning and assisted in making it a reality.Photo by Henry Kobutra on UnsplashLawsuitGraham was quite public in his support of FTX and Sam Bankman-Fried. He appeared frequently on podcasts, always explaining that the FTX founder was a genius. On investing in FTX and in projects in general, Graham stated repeatedly that Sino Global maintained a high level of due diligence. Most of the leading venture capital investors in FTX (including Sino Global) have been subject to class action lawsuits filed by creditors. It’s claimed that many of these investors didn’t simply invest capital but also got involved in actively marketing what turned out to be a fraud.In January, the court-appointed management team overseeing the FTX bankruptcy proceedings sought permission to subpoena Wang and other former executives of the company. Court filings indicate that Wang has not been accused of any wrongdoing in relation to the collapse of FTX or Alameda.Prior to her tenure at FTX, Wang briefly worked at the crypto exchange Huobi in Singapore as a Business Development Manager. She also spent two years as an analyst at Credit Suisse.New rolesIn recent months, other former FTX employees have also reappeared in new roles. Amy Wu, who left Lightspeed Venture Partners to lead FTX Ventures, announced her joining Menlo Ventures, one of the oldest venture firms in Silicon Valley. Brett Harrison, former President of FTX US until his sudden resignation in September 2022, has founded a startup with plans to provide a “GPT-4-powered trading algorithm code generator.”The transition of Constance Wang and her fellow FTX alumni into new positions at face value seems like a logical progression. However, all of the FTX c-suite executives remain under ongoing scrutiny. Having brought charges against Bankman-Fried, Caroline Ellison, and Nishad Singh some months ago, Southern District of New York (SDNY) Attorney Damian Williams stated clearly that more arrests would follow.

Hivemind Capital Partners expands into Hong Kong marketHivemind Capital Partners, a prominent player in the world of Web3 and digital asset investment, has officially unveiled its plans for expanding its operations to Hong Kong.Photo by Chromatograph on UnsplashNew Head of Asia appointmentIn a press release published by the New York-headquartered firm on Tuesday, Hivemind outlined that alongside this significant Asian expansion, the company has appointed Stanley Huo as Head of Asia. Huo is a seasoned investment banker with over 15 years of experience at prestigious institutions like China Renaissance, UBS, Citi and BAML across Asia and Europe.Huo expressed his excitement, stating: “I’m thrilled to be joining Hivemind at such a transformative period. The intersection of traditional finance and burgeoning digital asset technologies in Hong Kong presents unmatched opportunities and I’m looking forward to leading our initiatives in this vibrant ecosystem.”Identifying an opportunityHivemind Capital Partners had nothing but praise for Hong Kong as a significant crypto hub. The company highlighted the distinct advantages that come with operating in the city-state, including a well-established ecosystem that facilitates access to traditional financial infrastructure, capital-raising opportunities and the exploration of blockchain-related innovations.Huo told The Block: “It was very interesting to see that the Hong Kong government welcomes all the Web3 capital and talents… They want to build up a Web3 center.”Matt Zhang, Founder and Managing Partner of Hivemind, is equally enthusiastic about the Hong Kong expansion, stating:“Our expansion into Hong Kong not only represents our firm’s growth, but our commitment to being at the center of financial innovation and technology. With Stanley leading our business in Asia, we are positioned to significantly contribute to, and influence, the evolving narrative of blockchain technology and digital assets in the region.”Zhang is a speaker at Hong Kong Fintech Week later this week, where he will participate in a panel discussion titled “The Future of Stablecoins: Exploring Virtual Asset Payment Infrastructure and the Rise of Non-USD Stablecoin Frameworks.” He founded Hivemind in November 2021, with a view towards deploying capital within verticals such as crypto infrastructure, virtual worlds, programmable money and blockchain protocols.Hivemind has been on a significant growth trajectory, as evidenced by its recent launch of a $1.5 billion investment vehicle, with available funds still waiting to be deployed. Additionally, the company introduced the Liquid Opportunity Fund, a $300 million crypto fund, earlier in the year, securing $60 million for the fund in June.Following a regional trendThe company’s move to Hong Kong aligns with the broader trend of cryptocurrency firms recognizing the region’s potential and considering it for their expansion plans. Notably, Zodia Custody, a digital asset custodian backed by Standard Chartered, recently announced its launch in Hong Kong.While Hong Kong has actively positioned itself as a hub for Web3 companies, boasting recent developments like the introduction of retail trading for licensed crypto exchanges in August, it has also faced challenges. The city recently witnessed the largest Ponzi scheme in its history, involving the embezzlement of approximately $166 million from JPEX crypto exchange users. The investigation into this incident is still ongoing.

International Holding Company (IHC), based in the United Arab Emirates, has green-lit the launch of 2PointZero, a holding company encompassing a diverse array of companies, marking a significant stride into various industries, including the burgeoning crypto ecosystem. Photo by Kevin Villaruz on PexelsIHC announced the launch of 2PointZero via a press release published to its website recently. The new holding company boasts a combination of entities with a cumulative asset value exceeding $27 billion, pending completion after securing all necessary regulatory approvals. IHC is one of the Middle East and North Africa’s (MENA) largest conglomerate companies. Founded in 1998 in Abu Dhabi, it contains 422 subsidiary companies with eight of them listed on the Abu Dhabi Stock Exchange Market (ADX). Business interests span sectors such as real estate, healthcare, food and beverage, industrial, IT and communications and agriculture.Tahnoon bin Zayed Al Nahyan, Chairman of IHC, expressed pride in announcing the formation of 2PointZero, positioning it as a next-generation holding company at the forefront of pioneering advancements across multiple sectors. The new holding company will concern itself with sectors that include private equity and alternative investments, venture capital operations, asset management, micro financing and insurance. Digital and cryptocurrency ecosystems is another sector that 2PointZero will invest in. Crypto mining interests2PointZero Holding will incorporate entities such as Chimera Investments, Lunate, Beltone, International Resources Holding (IRH), and Sagasse Investments. Within Lunate, one of Abu Dhabi’s newest funds, lies Citadel Technologies. Citadel stands as a key player in the cryptocurrency mining sector, operating a state-of-the-art crypto mining facility in Abu Dhabi. Specializing in Bitcoin mining, Citadel is committed to sustainable and efficient mining practices, benefiting from its strategic location in the UAE and leveraging the region's advanced infrastructure. In the fiscal year 2022, Citadel reported a revenue of AED 100 million with assets totaling AED 2.7 billion. IHC recently acquired a 10% stake in Phoenix Group, the manager of the "Citadel Project," solidifying Citadel's position as the largest crypto-mining facility in the Middle East. Potential to expand crypto-related investmentsBack in 2022, IHC had outlined its strategy to expand into new growth areas and to grow its digital assets portfolio. In December, an IHC subsidiary, Sirius International Holdings, formed a partnership with Indian infrastructure company Adani Group with a view towards developing AI, internet of things (IoT) and blockchain-based services and solutions. This recent development is encouraging in terms of the potential for far greater crypto-centric investment, given the size of the UAE-based entity. The press release states:”The 2PointZero portfolio, which is expected to surpass AED 100 billion in assets, reflects its commitment to excellence and strategic growth in the digital and crypto ecosystems, resource management, and beyond.” Al Nahyan emphasized 2PointZero's commitment to transformative global impact, particularly in areas such as technology, artificial intelligence (AI), financial services, investment banking and resource management. The vision extends beyond boundaries, with a mission to build sustainable ecosystems that empower communities, foster technological excellence and ensure financial resilience.