Circle and SBI Holdings join forces to propel USDC growth in Japan

Taiwanese prosecutors have expanded their inquiry into ACE Exchange, urging the detention of Chenhuan Wang, the platform's president and partner at Chien Yeh Law Offices. The Taipei District Prosecutors Office disclosed to The Block that Wang, alongside four other suspects, was summoned after police raids in Northern Taiwan earlier this month. Subsequent to the interrogation, prosecutors sought Wang's detention and restrictions on visitation rights, alleging his involvement in money laundering and fraud linked to the activities orchestrated by the detained founder, David Pan. Chien Yeh Law Offices has moved to distance itself from its partner’s activities, stating that the matter is a personal investment of Wang’s. It stated:”Ace Digital Innovation Co., Ltd. is the personal external investment affairs of lawyer Wang Chenhuan and has nothing to do with the firm.”Photo by Thomas Tucker on UnsplashMisleading advertisingPan, along with colleague Lin Nan, is accused of a three-year collaboration, utilizing misleading social media advertisements to deceive investors into acquiring worthless cryptocurrencies, including MOCT. The inclusion of Wang in the investigation now requires a court determination on potential detention. ACE Exchange responded to Pan's arrest earlier, asserting that Pan had ceased daily operations in 2022, with Wang assuming the presidency in September 2023. Wang claimed to have initiated efforts to delist controversial coins, with ACE assuring cooperation with investigations as a witness. The exchange affirmed the normalcy of trading and operational conditions, emphasizing the security of user assets and smooth cryptocurrency and New Taiwan dollar deposit and withdrawal services. Established in 2018, ACE Exchange ranks among Taiwan's prominent crypto exchanges, alongside BitoGroup and MaiCoin. In spite of alleged wrongdoing relative to key actors within the business, the platform has outlined its commitment to legal principles, stating zero tolerance for any misconduct within its management team. Regulatory focus on offshore exchangesIn the broader context of Taiwan's crypto landscape, the Financial Supervisory Commission (FSC) plans to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction, unless they secure required registration. In September last year, the FSC drafted guiding principles for virtual asset service providers (VASPs). These guidelines aim to fortify information disclosure, set review standards for virtual asset listing and delisting and ensure the secure separation of companies' and customers' assets. The FSC intends to strictly prohibit illegal business solicitation by foreign crypto firms, mandating registration and compliance declarations with anti-money laundering regulations. Failure to comply will result in the prohibition of business solicitation within Taiwan or from domestic residents by foreign VASPs. As Taiwanese prosecutors intensify their efforts, the ACE Exchange case unfolds as a critical episode in the evolving regulatory landscape, prompting both legal scrutiny and a reevaluation of the country's approach to crypto oversight.  

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.

Zodia Custody and Blockdaemon Partner on Institutional StakingLondon-based cryptocurrency storage provider Zodia Custody, a portfolio company of Japan’s SBI Holdings, has entered into a partnership with blockchain infrastructure provider Blockdaemon relative to crypto staking.Photo by Traxer on UnsplashInstitutional interestBlockdaemon announced the crypto staking collaboration, tailored to institutional clients, on Twitter on Tuesday. This move comes as institutional interest in staking, the process of contributing digital assets to support blockchain networks and earning rewards, continues to surge.Following the Ethereum network’s Shapella upgrade on April 12, the amount of ether (ETH) staked increased by an impressive 4.4 million, reaching a total of 22.58 million ETH (equivalent to $42 billion) as of May 23. This remarkable growth in staked assets reflects the growing confidence in the Ethereum network and the potential for substantial returns.First bank-owned custodianZodia Custody is a subsidiary of the well-known multinational bank Standard Chartered and backed by prominent institutions such as Northern Trust alongside SBI Holdings. It claims the title of being the first bank-owned custodian to provide staking services exclusively to institutional clients. This collaboration enables Zodia Custody to leverage Blockdaemon’s infrastructure to deliver secure and efficient staking solutions, catering to the specific needs of institutional investors.Blockdaemon has been at the forefront of facilitating seamless integration between traditional financial institutions and the emerging crypto industry. Earlier this year, the company introduced a wallet service targeted at the institutions and crypto custodians. The wallet assists clients in managing their assets securely, eliminating the need for third-party storage solutions. By partnering with Zodia Custody, Blockdaemon expands its portfolio of services, capitalizing on the rising demand for staking among institutional investors.The firm’s CEO and Founder, Konstantin Richter, stated that the partnership with Zodia “allows stronger security, automation and simplification of the process to participate in staking, truly accelerating Web3 innovation.”LMAX collaborationEarlier this month Zodia partnered with digital asset trade execution specialist LMAX Digital to provide a combination of institutional-grade trading infrastructure and custody services to crypto asset manager, Coinshares.Institutional investors, traditionally cautious about entering the crypto ecosystem, are now becoming more proactive in engaging with digital assets. Staking, with its potential for consistent and predictable returns, has emerged as an appealing opportunity. By participating in staking, institutions not only contribute to the efficient functioning of blockchain networks but also enjoy the rewards associated with validating transactions and securing the network.The partnership between Zodia Custody and Blockdaemon exemplifies the industry’s efforts to bridge the gap between traditional finance and the rapidly evolving world of cryptocurrencies. As more institutional clients seek exposure to digital assets, it becomes essential to provide them with secure and reliable solutions tailored to their specific requirements.With demand for staking services continuing to rise, institutional players are recognizing the value of taking a more active part in the crypto ecosystem. With Zodia Custody and Blockdaemon leading the way, the opportunities for institutional clients to engage in staking and reap the rewards are set to expand, further fueling the growth of the entire crypto industry.