Telcoin makes users whole in exploit recovery

B. Riley Financial Agrees Strategic Bitdeer Share PurchaseBitdeer, the Singapore-based crypto mining firm that emerged as a spin-off from the renowned mining manufacturer Bitmain, has solidified a significant pact with financial services firm B. Riley Financial, through a share purchase deal. This accord entails the sale of up to $150 million worth of Bitdeer’s Class A ordinary shares.Photo by Kelly Sikkema on UnsplashOption to buyIn a filing dated August 9 with the United States Securities and Exchange Commission (SEC), the terms of the agreement unveil a strategic arrangement. B. Riley will possess the option, albeit not the obligation, to procure a designated quantity of Bitdeer’s shares over a span of three years. Parameters of this agreement include a maximum acquisition of either 1 million shares or 25% of the shares of Bitdeer traded on the Nasdaq throughout this stipulated purchase timeframe.The filing states: “Pursuant to the Purchase Agreement, the Company has the right to sell to B. Riley Principal Capital II, up to US$150,000,000 of its Class A ordinary shares, par value US$0.0000001 per share (the “Class A Ordinary Shares”), subject to certain limitations and conditions set forth in the Purchase Agreement.”Amplified voting privilegesIn essence, this arrangement affords B. Riley a distinct position within Bitdeer’s echelons. Class A shares, which typically elude public trading, grant shareholders amplified voting privileges in contrast to their Class B counterparts. Ergo, this deal furnishes B. Riley with a tangible stake in the domain of crypto mining.Underpinning this transaction, Bitdeer has committed to compensating B. Riley with 0.5% of the deal’s total value in acknowledgment of its commitment to procuring these shares. Additionally, B. Riley will be indemnified for legal expenses and outlays, extending up to a cap of $50,000.Broader mining interestIt’s not the first time that B. Riley has shown an interest in crypto mining. It signed a $100 million equity deal with Iris Energy last year. Additionally, it’s one of the largest creditors of Core Scientific.Noteworthy is the fact that Bitdeer embarked on its journey to public status via a Special Purpose Acquisition Company (SPAC) deal with Blue Safari Group back in April. This strategic maneuver enabled Bitdeer to become public without taking the conventional route of an initial public offering (IPO).Marking a departure from the throes of the crypto winter, this SPAC deal entailed the fusion of a special purpose acquisition company with a private entity. Bitdeer’s subsequent Nasdaq debut wasn’t without its problems. Investors were lukewarm in the interest shown in the Bitdeer proposition, resulting in an immediate 30% price drop.Bhutan mining collaborationNotably, Bitdeer made headlines when it inked a partnership with Druk Holding and Investments (DHI) in May, signifying a collective stride towards establishing an ecologically-conscious, carbon-neutral digital asset mining venture within the realm of the Kingdom of Bhutan.Rooted in the visionary pursuits of Jihan Wu, the former Co-Founder of Bitmain, Bitdeer is distinguished for its cloud-mining services, a pursuit realized through its data centers stationed in Tennessee, Washington, and Texas. The company’s most recent operations report attests to the mining of 220 Bitcoin (BTC) via its self-mining enterprise in July, constituting an impressive year-over-year escalation of 41%.

Fobl Partners with KDAC to Store Part of Customers’ Assets in CustodyKorean non-fiat cryptocurrency trading platform Fobl announced on Tuesday that it has teamed up with Korea Digital Asset Custody (KDAC) to provide enhanced customer protection.©Pexels/Savvas StavrinosKDAC, backed by Shinhan Bank, has been providing virtual asset custody services to businesses seeking safe asset management.Collaboration plans between Fobl and KDACWith the partnership, the two sides will store a portion of Fobl customers’ assets in custody, build a systematic process for custody of projects’ virtual assets and their pre-disclosures, and seek out new business opportunities in the Korean security token market.Fobl’s potential transformation to fiat exchangePreviously, it was reported that Fobl is set to face a comprehensive inspection next week from the Financial Intelligence Unit (FIU) under the Korean Financial Services Commission (FSC).This move from the FIU suggests that Fobl may soon become a fiat crypto exchange in the near future, as the financial regulator has announced that it will first inspect non-fiat exchanges that are preparing to allow fiat trading.

Samil PwC seminar informs companies about crypto accounting amid shifting Korean regulationsWith the South Korean government anticipated to finalize a plan aimed at enhancing cryptocurrency transparency within this year, companies are preparing to swiftly respond to the changing accounting landscape.A seminar held on Thursday (local time) in Seoul by Samil PwC, the Korean member firm of the London-headquartered accounting firm PricewaterhouseCoopers, exemplifies these efforts. This meeting featured presentations from Samil staff, focusing on the implications of the new upcoming crypto accounting guidelines for businesses and exploring strategies for effective response.Photo by Kelly Sikkema on UnsplashGovt to soon finalize crypto accounting guidelinesDuring the meeting, an official from Samil PwC said that the Virtual Asset User Protection Act is set to be implemented next July. The accounting expert also noted that the Financial Services Commission’s guidelines on virtual asset accounting and the requirement for disclosing virtual assets in financial statement annotations, issued this July, are expected to be finalized shortly.From accounting to internal controlsAs the first speaker of the seminar, Lee Seung-wook, Partner at Samil PwC, delivered a presentation on the management of cryptocurrency accounting and the disclosure of cryptocurrency holdings within financial statement annotations. Lee classified companies into three categories: crypto issuers, crypto holders or investors and companies operating crypto businesses. He provided detailed guidance on what each category of companies should consider in their approach to managing and disclosing virtual assets.In particular, Lee drew attention by clearly explaining the accounting approaches companies should adopt in various scenarios, such as when offering cryptocurrency as an incentive to employees or airdropping cryptocurrency to customers for marketing purposes.Following this, Partner Jo Sung-jae delved into enhancing internal controls related to virtual assets. Drawing from PwC’s own framework, he presented practical methods to mitigate risks associated with cryptocurrencies, such as the loss of private keys, vault breaches and embezzlement.The seminar also covered the topic of Information Technology General Controls (ITGCs). Partner Lee Jeong-mi made a comparison between ITGCs in traditional business environments and those specific to the cryptocurrency industry, highlighting the unique considerations that crypto businesses need to be aware of. Furthermore, Managing Director Lee Eun-young discussed the tax implications related to cryptocurrency.Anticipation of uncertainty reductionLee Jae-hyuk, who oversees the cryptocurrency division at PwC and served as the overall manager of the seminar, expressed optimism that the government-led guidelines would reduce the uncertainty surrounding cryptocurrency accounting. He also conveyed his hope that the seminar would provide attendees with the opportunity to consider the influence of digital assets on corporate accounting, internal controls and tax implications, as well as their potential impact on future industry trends.Samil PwC stands out as one of the first Korean accounting firms to establish a dedicated blockchain division within its Digital Innovation Lab, incorporating a team of developers. Leveraging its accumulated expertise in this field, Samil PwC offers a broad range of services, including internal controls consultations, accounting audits, financial advice and tax filing. Further emphasizing its commitment to the evolving field of cryptocurrency, in June of this year, Samil PwC collaborated with the Korean Accounting Association (KAA) to conduct research focused on cryptocurrency accounting.