Phoenix Group strikes $380M deal with MicroBT

SafePal Delves Into Korean Market Through Klaytn PartnershipThe Seychelles-based team behind non-custodial digital asset wallet provider, SafePal, has made its first attempt at conquering the Korean market through a partnership with South Korean enterprise blockchain, Klaytn.The collaboration will see the wallet provider support digital assets native to the Klaytn blockchain network. For Klaytn ecosystem users, it also means that they can access in excess of one hundred blockchains, which are already supported by SafePal’s non-custodial wallet. Both entities articulated their thoughts relative to the partnership, with SafePal doing so via a blog post published late last week. Meanwhile, the Klaytn project team expanded on the development in a post to its website on Tuesday.Photo by Mathew Schwartz on UnsplashKorean expansionKlaytn-native digital assets will be supported via SafePal’s mobile app, hardware wallet and its browser extension-based wallet. SafePal acknowledges the leading position that the Klaytn network takes in Korea, relative to the metaverse, blockchain gaming and other Web3 verticals. While SafePal already has 10 million users, this move demonstrates that it has plans on expanding that user-base to incorporate millions more, in this case Korea-based Klaytn network users.Alluding to that Korean expansion, Veronica Wong, Co-Founder and CEO of SafePal stated: “Klaytn is a leading blockchain in Korea for Web3 and DeFi, so this partnership made perfect sense, as we want users to access exciting opportunities in all established ecosystems globally.”Bringing Klaytn dApps to SafePal usersThe Klaytn project team is viewing the hook-up in the same manner. In its announcement it outlines that the collaboration can serve its purpose in “bringing in Klaytn’s next 10 million users with SafePal.” The partnership also serves to bring leading Klaytn dApps to that new user-base of 10 million. That includes on-chain instant swap protocol, Klayswap, blockchain play-to-earn game DeFi Kingdoms, Korean NFT marketplace Pala, leveraged yield farming project, Kleva Protocol and DEX aggregator Swapscanner.Conceived by the dominant messaging app provider in Korea, KAKAO, in 2018, the development of the Klaytn blockchain is now guided by the Klaytn Foundation. The project has set out a governance roadmap that will see the project achieve decentralization later this year.SafePal growth trajectorySafePal has been hitting its numbers when it comes to expanding its user base. Over the course of the past year, it has grown its user-base from 8 to 10 million. Its support for 100 blockchains results in overall support for in excess of 200,000 token types, including NFTs. That growth strategy belies further comments that Wong made relative to this latest collaboration:“While the self-custody offered by Web3 and DeFi is increasingly important amidst growing concerns about traditional financial systems, adoption is still hindered by language and geographical barriers. Klaytn is a leading blockchain in Korea for Web3 and DeFi, so this partnership made perfect sense, as we want users to access exciting opportunities in all established ecosystems globally.”With no let up in its growth strategy, SafePal followed up on Friday with an announcement that it had integrated the recently launched low latency, high throughput layer one SUI network and its native token, $SUI.

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.

At Hong Kong FinTech Week 2025, Securities and Futures Commission (SFC) Chief Executive Julia Leung outlined plans to link Hong Kong’s crypto market with global liquidity. She announced that licensed virtual asset trading platforms (VATPs) will be allowed to share a global order book with their overseas counterparts. According to a statement published on the SFC’s website, this step will enable local investors to access international markets more efficiently, improving price discovery and competitiveness. Leung added that more initiatives are on the way to connect local brokers directly to global liquidity networks. This latest connectivity push comes as Hong Kong considers new guardrails for crypto holding companies such as digital asset treasuries (DATs), which hold cryptocurrencies as strategic assets.Photo by Manson Yim on UnsplashSFC points to regulatory gaps for digital asset treasuriesThe state-owned newspaper Wen Wei Po reported that Securities and Futures Commission (SFC) Chairman Kelvin Wong noted the current lack of regulations governing listed companies operating as DATs and the limited understanding of such entities. Chairman Wong added that firms seeking to list in Hong Kong as DATs would need to persuade both the SFC and the Hong Kong Stock Exchange (HKEX) of their suitability. For companies already listed, he urged investors to remain alert to the potential risks involved. This regulatory concern over crypto investing companies emerges as Hong Kong simultaneously presses ahead with its ambition to become a leading hub for digital finance. City advances on e-HKD and tokenizationIn line with that ambition, the Hong Kong Monetary Authority (HKMA) unveiled its e-HKD Pilot Programme Phase 2 Report in an Oct. 28 press release. The report outlines the potential benefits of its central bank digital currency (CBDC), the e-HKD, and tokenized deposits, noting that public feedback on both concepts has been broadly positive. The program's second phase involved 11 pilot projects led by various consortiums. These projects explored retail use cases, emphasizing the e-HKD’s commercial viability and scalability. Key focus areas included the settlement of tokenized assets, programmability, and offline payments. Participants in the program included Aptos Labs, the Boston Consulting Group (BCG), Hang Seng Bank, Standard Chartered, and BlackRock. Based on the report's findings, the HKMA stated it would initially prioritize the e-HKD’s application in wholesale or large-value payments, leveraging its credit risk–free nature as a central bank liability. Concurrently, the authority plans to continue studying potential retail and corporate applications, aiming to lay the groundwork for broader implementation by the first half of 2026. Survey shows strong investor appetiteAmong the program’s participants, Aptos Labs, Boston Consulting Group (BCG), and Hang Seng Bank reported accelerating interest in tokenized funds. A survey they conducted found that 61% of retail investors in Hong Kong and mainland China planned to double their exposure. Held between May and June 2025 among more than 500 retail fund investors, the survey tracked sentiment and appetite for tokenized products. Mainland participants showed particularly strong demand for cross-border access. The findings also detailed differing motivations among Hong Kong investors. Active traders expect to lift tokenized fund allocations from 10% to 26%, attracted by round-the-clock trading and greater flexibility. Wealth transfer planners indicated an expected expansion from 5% to 16%, highlighting programmable fund structures for tailored trusts and transparent oversight. Long-term investors aim to raise exposure from 8% to 25%, citing instant liquidity and the ability to use tokenized assets as loan collateral. Mainland investors projected their allocations would climb from 11% to 24%, reportedly viewing tokenized funds as a practical route around capital restrictions. The survey noted that programmable features could support dynamic allocation across Hong Kong products, the onshore use of profits, and smoother cross-border transfers. BCG commented that the survey outcomes align with Hong Kong's measured advance in crypto oversight, pointing to the city’s stablecoin regime that came into force in August. The Hong Kong Monetary Authority (HKMA) has signaled, however, that licensing under that regime will not begin until early next year. The ongoing development of the e-HKD and the prospective regulation of digital-asset treasuries point to Hong Kong’s broader strategy of integrating digital finance into its mainstream economy. Together, these initiatives underscore a cautious yet steady effort to position the city as a global center for digital finance.