KODA’s crypto assets in custody surpass $6B

Gate.io Shrugs Off Withdrawal Concerns Amid Multichain CrisisGate.io, a prominent cryptocurrency exchange, has refuted rumors circulating within the crypto community about withdrawal issues on its platform. On Wednesday, the exchange reassured users that its operations remain unaffected by recent events.Photo by Keller Chewning on UnsplashGate.io confirms smooth operationsGate.io is one of the oldest Chinese Bitcoin exchanges. It moved its corporate headquarters to the Cayman Islands once the Chinese authorities took a hardline stance on cryptocurrencies a few years ago. It also maintains offices in Seoul, South Korea, and is currently preparing to launch a bespoke Hong Kong-based platform.According to the exchange, withdrawals are functioning properly, and the overall operations of the exchange are healthy. It explicitly stated, “There are no issues with our operations or withdrawals as rumored.”Multichain concernsSpeculation emerged on social media on May 24 when Arkham Intelligence reported that members of the separate blockchain project Multichain had transferred $3 million worth of the $MULTI token to Gate.io. Arkham also mentioned other transactions involving Multichain-related tokens, some of which were subsequently suspended for deposit on the leading exchange, Binance.While Arkham did not directly suggest any risks to Gate.io itself, the combination of market activity and other events led to rumors. ‘Coinsumption,’ a Twitter account with nearly 31,000 followers, suggested on May 31 that Gate.io might be facing insolvency problems and advised users to withdraw their funds from the exchange.The ongoing issues with Multichain may well be unrelated to Gate.io. Multichain’s team members recently stated that they are unable to contact their CEO or access project servers. The project has experienced transaction delays over the past few days.Native token price impactGate.io’s native token ($GT) has reportedly been affected by these rumors, as its value has declined by 6.59% over the past 24 hours. In contrast, Bitcoin has only experienced a 1.4% decrease.The $GT token losses can be attributed, in part, to a period of several hours during which the token’s price dropped from $4.92 to $4.49. In isolation, this change represents an 8.7% loss, although there have been partial recoveries and other fluctuations to offset the decline. At the time of publication, the $GT token unit price stood at $4.36.Despite the recent challenges, Gate.io continues to demonstrate significant trading volume. On the most recent day, the exchange recorded approximately $525 million in trading volume, solidifying its position as one of the largest centralized exchanges with sub-billion daily trading volumes.The almost ten-year-old exchange is among several cryptocurrency exchanges preparing to comply with upcoming regulations in Hong Kong. It aims to operate alongside other platforms, such as CoinEx, OKX, Huobi, and BitMEX, as they adapt to the regulatory framework being implemented in the region.Gate.io has dispelled rumors of withdrawal issues, assuring users that its operations are functioning normally. Notwithstanding that, as with everything in the crypto space, the facts and circumstances can change in an instant. Therefore, it’s a topic that is worthwhile watching as further news emerges relative to ongoing issues on the Multichain project.

The Securities and Exchange Commission (SEC) of Thailand has initiated legal proceedings against Akarlap Yimwilai, the former director and CEO of Zipmex Thailand. Failure to disclose vital informationThe Commission set out its allegations against Yimwilai in a statement published to its website on Thursday. The allegations revolve around Yimwilai's purported failure to disclose vital information during his tenure, resulting in financial losses for Zipmex customers. According to the SEC's investigation, Yimwilai allegedly transferred cryptocurrency from Zipmex Thailand's wallets to overseas digital wallets without prior disclosure to customers.Photo by Olivier Darny on Pexels Unauthorized digital asset movementsThe SEC's findings indicate that customer assets held in Zipmex Thailand's Z Wallet were moved into overseas digital wallets before any official announcement regarding changes in terms and conditions. This conduct, the regulator asserts, contradicts the information provided by Zipmex Thailand, constituting fraudulent misrepresentation. Yimwilai served as CEO of Zipmex Thailand from August 2018 to November 2023, as per his LinkedIn profile. This deceptive action misled users regarding the security of their assets, the SEC claims, prompting the Commission to charge him with violating Section 82 of the Digital Asset Business Operation Act B.E. 2561. The SEC's accusations extend to Zipmex Thailand's submission of inaccurate reports on customer assets and violations of regulatory requirements. The regulator contends that the reports submitted by Zipmex Thailand were inconsistent with independently verified information. Inviting further legal actionIn response to these allegations, the SEC has forwarded charges against Yimwilai to the Office of the Public Prosecutor (OPP) for further legal proceedings. The SEC has also filed a formal complaint against Yimwilai with the Office of the Provincial Crime Suppression Division, indicating a pursuit of additional legal action. The determination or otherwise of legal liability will be a pivotal step in this process, emphasized by the SEC. Zipmex Thailand, a subsidiary of Singapore-based Zipmex under the leadership of Marcus Lim, obtained approval to operate from the Ministry of Finance and SEC in 2020. The company reportedly came under scrutiny from financial regulators over its acquisition by V Ventures in 2023.  V Ventures backed out of the $100 million buyout of the company last year, which would have included the return of customer deposits. It claimed that Zipmex had not lived up to the terms of the buyout contract.On Feb. 2, the Thai SEC directed Zipmex to temporarily suspend its digital asset trading and brokerage services, granting the firm a 15-day period to adhere to regulatory guidelines. Earlier reports had highlighted Zipmex's application for court protection amidst a wave of bankruptcies among crypto lenders. In November 2023, Zipmex proposed a restructuring plan to reimburse creditors at $0.30 on the dollar, encountering resistance from key stakeholders. The initial offer stood at three cents on the dollar, with the potential to increase to 30 cents in the event of optimized capital recovery.

The blockchain network underpinning Bitcoin, the world’s largest cryptocurrency, requires an energy volume comparable to the annual consumption of Thailand. According to Digiconomist’s Bitcoin Energy Consumption Index, the protocol utilized roughly 204.44 terawatt-hours (TWh) of electricity between Nov. 18, 2024, and Nov. 18, 2025.Photo by Fré Sonneveld on UnsplashFiscal losses drive Malaysian oversightAmid these intense energy demands, Malaysia’s primary electricity utility has recorded substantial financial impairments attributed to illicit activities. Tenaga Nasional Bhd (TNB) reported losses totaling 4.57 billion ringgit ($1.1 billion) from illegal crypto-mining operations over a five-year span. In a Nov. 19 report by The Edge Malaysia, the Ministry of Energy Transition and Water Transformation (Petra) disclosed these figures to parliament, specifying that the unauthorized mining occurred at 13,827 locations between 2020 and August of this year. To counter these infractions through regulatory channels, Petra has formed a special committee scheduled to convene before year-end. This body aims to recommend enhancements to the Electricity Supply Act, which currently delineates penalties based on the offender's classification. Domestic violators face fines ranging from 1,000 to 50,000 ringgit ($240 to $12,000), imprisonment of up to one year, or both. Penalties escalate for non-domestic entities, involving fines between 20,000 and one million ringgit ($480 to $240,000) and potential prison terms of up to five years. Despite these provisions regarding electricity theft, a specific legal code regulating the act of crypto mining remains absent, creating a jurisdictional void. International bans and grid reallocationStrategies to curtail electricity usage by crypto miners are becoming evident elsewhere in Southeast Asia as well. Laotian Deputy Energy Minister Chanthaboun Soukaloun told Reuters last month that the nation intends to suspend electricity supplies to crypto miners by early 2026. He cited the sector's minimal economic contribution and low job creation as primary factors. Consequently, the state plans to redirect power to high-priority sectors, including AI data centers, metals processing, and electric-vehicle manufacturing. Parallel restrictions are emerging globally. In October, the government of British Columbia enacted a permanent prohibition on new BC Hydro connections for crypto miners to safeguard the Canadian province’s energy reserves. Officials pointed to the industry’s "disproportionate energy consumption and limited economic benefit" as the rationale for the policy. The debate over thermal innovationConversely, some enterprises are exploring methods to capture thermal output from Bitcoin mining to heat residential and commercial properties. If viable, such repurposing could utilize the considerable thermal byproducts of mining. A K33 Research study cited by CNBC indicates the industry generates roughly 100 TWh of heat annually, a figure sufficient to warm the entirety of Finland. However, industry consensus on the feasibility of these applications remains elusive. Proponents suggest that mining infrastructure could be situated in proximity to heat consumers. Skeptics, however, contend that the reliance on application-specific integrated circuit (ASIC) chips makes this impractical, arguing that the technical difficulty of mining a block renders household participation unfeasible. Despite these differing views, the concept continues to attract attention as a potential avenue for innovation in energy distribution. As jurisdictions like Malaysia and British Columbia tighten regulatory oversight, the cryptocurrency sector faces mounting pressure to address its energy footprint. The divergence between government restrictions and industry-led efficiency proposals underscores the complex relationship between digital asset infrastructure and global energy resources. Given the shifting landscape of policy and technology, the outlook for sustainable large-scale crypto mining remains uncertain, as governments weigh energy demands against economic benefits and the industry searches for more efficient ways to operate.