Haru Invest executives arrested for $750M crypto embezzlement

Zero Two Enters Into JV to Develop First Middle East Mining OpZero Two, a digital assets development company based in Abu Dhabi in the United Arab Emirates (UAE), has partnered with leading North American crypto miner Marathon Digital in a joint venture that will result in the development and operation of the Middle East’s first large-scale crypto mining facility.Photo by Manuel Geissinger on PexelsInitial capacity of 250 MWIn a press release issued on Tuesday, Marathon Digital outlined that the venture is focused on accelerating the global digital economy while also supporting Abu Dhabi’s power grid.To progress the project, the two companies have formed the Abu Dhabi Global Markets JV Entity (AGDM Entity). Initially, two digital asset mining facilities, with a combined capacity of 250 MW, will be developed.One site, at Masdar City, Abu Dhabi, will account for 200 MW of that capacity. The remaining 50 MW capacity will be developed at a site located in the port area of Mina Zayed. The strategy of the firms is to exploit excess network energy in Abu Dhabi. The firms see this as a win/win as increasing the base load of the Abu Dhabi power grid will result in a more sustainable grid. The companies intend to supplement any use of non-sustainably produced energy with carbon offset certificates.80/20 equity splitThe two firms have agreed upon an 80%/20% equity split, with Zero Two being the lead investor. In the initial development period for the venture during 2023, both entities will contribute resources to the joint venture in proportion to the equity division, in the form of capital, equipment and infrastructure.Zero Two and Marathon had previously collaborated on a pilot project with the objective of determining the feasibility of building a large-scale facility. Air-cooled miners have not proven to be a success in hot arid climates like that of the Rub Al Khali Middle Eastern desert.The upshot of the pilot program was a determination that a custom-built immersion-cooled system would be feasible. Mining equipment for the facilities is already on order while construction at the two sites is underway. Both sites are expected to go online before the end of the year with a combined hashrate of 7 EH/s.Ahmed Al Hameli commented on the joint venture: “This alliance leverages Zero Two’s regional expertise, expansive relationships, and growing blockchain infrastructure development and operational capabilities, with Marathon’s technical prowess in developing digital asset sites and innovative mining technologies.These synergies create a powerful combination and lay the groundwork for the success of this pioneering project in the Middle East. Marathon shares our commitment to actively supporting Abu Dhabi’s power grid and developing global digital assets infrastructure. We look forward to working with them on this venture.”Jurisdictional arbitrageMarathon’s CEO Fred Thiel said that Zero Two’s regional relationships were an optimal compliment. It may be both a timely and shrewd move by Marathon to develop this project in the Middle East region. In recent weeks the Biden administration floated the idea of a 30% crypto mining tax. Crypto mining is a global endeavor.That type of additional overhead would make it very difficult for North American miners to remain viable. By opening up new working relationships in other regions, the company may be in a better position to pivot should North America and the firm’s Montana-based mining facility become unsustainable.

Indonesia Set to Launch National Cryptocurrency Exchange in JulyThe Indonesian government is pushing forward with its long-awaited plan to introduce a national cryptocurrency exchange, which will be accessible to citizens in the coming weeks.Photo by Bisma Mahendra on UnsplashJuly launchAccording to a report from Tempo, Indonesia’s Commodity Futures Trading Supervisory Agency (CFTRA), also known as Bappebti, has announced that the national crypto exchange will be launched in July.Didid Noordiatmoko, the head of Bappebti, revealed that all cryptocurrency transactions in Indonesia will be exclusively permitted through the national exchange. He confirmed that the agency has recently finalized discussions on stock exchange rules, which include the implementation of Know Your Customer (KYC) procedures. Noordiatmoko also mentioned that the exchange will offer trading services through an integrated application, which has already undergone testing by CFTRA.Plan delaysThe launch of the national cryptocurrency exchange was initially planned for June 2023 but faced delays, following a previous postponement from the original target of December 2022. The project gained traction in 2021 when a government-backed Indonesian telecoms company announced a partnership with Binance to develop a joint cryptocurrency exchange.According to the latest report, Bappebti intends to restrict cryptocurrency sales to local transactions while aligning with global market trends. Approval from Bappebti will also be required for cryptocurrency prices on the exchange.Bappebti has informed Trade Minister Zulkifli Hasan about the progress of the national exchange. Noordiatmoko stated that unless further instructions are received, Bappebti will proceed to issue the necessary permit, allowing licensed traders one month to join the exchange.As of earlier this year, Indonesia had around 383 tradable crypto assets and ten local coins, with an additional 151 assets and ten coins under review by Bappebti.Indonesia’s central bank has released a white paper outlining its digital currency plans and approved a law classifying cryptocurrencies and digital assets as regulated financial securities. It has shown a level of support for digital assets albeit with an eye towards maintaining strict control. It has taken the lead in classifying 501 crypto assets, including BTC, ADA, BUSD, DOT, XTZ, and SAND, as commodities, setting an example that other nations may follow.Crypto is not permitted as a means of payment in Indonesia and in May the Governor of Bali warned foreign visitors against using it as such.In 2022, Indonesia’s trade ministry reported approximately 14 million cryptocurrency traders, surpassing the number of stock traders at 9 million. Meanwhile, the total trading value fell from 859 trillion rupiah in the previous year to around 300 trillion rupiah ($19.2 billion).Indonesia has been supportive of de-dollarization initiatives and the aspirations of BRICS nations to promote non-US fiat currencies. In April, the governor of the Bank of Indonesia, Perry Warjiyo, announced the introduction of the Local Currency Transaction (LCT) as part of Indonesia’s currency diversification strategy, aligning with the BRICS countries.

Galaxia Moneytree Forms Aviation Asset Tokenization ConsortiumKorean financial platform services provider Galaxia Moneytree announced that it has signed a memorandum of understanding (MOU) to establish a consortium for the development of a security token offering (STO) platform that issues tokenized aviation assets — the first of its kind in the country. Shinhan Securities, Eugene Investment and Securities, VMIC Aviation, and Cirium have signed on as members.Photo by John McArthur on Unsplash“This consortium will be a significant step in our endeavors to become a leading entity for innovation in the field of the tokenization of aviation assets. Our agreement will promote the advancement of the Korean aviation industry and enhance global competitiveness, providing investors with new opportunities through alternative investments,” said Shin Dong-hoon, CEO of Galaxia Moneytree.Shaping the future of aviationThe consortium aims to issue security tokens for leasing core aviation equipment such as aircraft engines, which would secure private funding and ease the burden that is imparted by leasing fees. Also, given that the most important aspect of STOs is asset valuation, the consortium has committed to issuing reliable aviation token securities to investors based on the accurate valuation of aircraft engines as determined by Cirium. Cirium is a global aviation data analytics company with 114 years of experience that provides solutions such as the valuation of aircrafts and engines, risk analytics for carbon emission reduction, and flight schedule changes.Galaxia Moneytree said that the consortium recently applied for a financial regulatory sandbox — a program introduced by the Korean government that offers special and provisional regulatory exemptions for financial services that have been recognized for their innovativeness.Partners with varying attributesGalaxia Moneytree will be responsible for overseeing the consortium as well as developing and operating the STO platform, which Shinhan Securities and Eugene Investment and Securities have agreed to provide funding for. The two securities firms will also provide management services for related trusts and accounts.Meanwhile, VMIC will take over asset management for aircraft engines and contribute various insights based on its expertise in aviation finance. VMIC Aviation is a Korean startup that specializes in innovative aircraft engine technologies by leveraging its technical and financial expertise.Discussions are also underway for cooperation with relevant government agencies such as the Ministry of Land, Infrastructure and Transport and the Korea Civil Aviation Association.The company has been working with its partner companies and communicating with government entities to tokenize a wide range of assets, from certified emissions reductions to renewable energy and horse racing. It is also taking the initiative to position itself as an industry leader by investing in joint ventures.