Mt. Gox moves $9B in Bitcoin for first time in years

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.

Xangle Joins Com2uS Group’s Blockchain Mainnet XPLA as ValidatorCrossAngle, the operator of the virtual asset analysis platform Xangle, said Thursday that it has joined Com2uS Group’s blockchain mainnet XPLA as a validator.Photo by Shubham Dhage on UnsplashIn crypto, validators are entities in Proof of Stake (PoS) blockchain networks who operate nodes and contribute to the network’s maintenance and security by validating new transactions.Xangle will participate as a validator in the XPLA mainnet, contributing to the security and well-being of the blockchain ecosystem.About XPLA and XangleXPLA is a global mainnet that offers multiple services like a non-fungible token (NFT) marketplace, a metaverse, and entertainment services. It has partnered with many leading Web3 companies from around the world, including Com2uS Holdings, Oasys, Animoca Brands, Yield Guild Games, Blockdaemon, Cosmostation, and more. Xangle has now joined as a validator, adding its name to the list.Xangle is a major platform providing research and analytics on virtual assets. It aims to address information asymmetry within the blockchain ecosystem and promotes the mass adoption of Web3.Xangle and XPLA have consistently worked together to cultivate the popularization of Web3 and create a transparent and well-maintained blockchain ecosystem. Xangle had previously participated as a partner company in the Beyond Boundaries Web3 hackathon co-hosted by XPLA and Oasys last month following XPLA’s adoption of Xangle’s on-chain analytics service in April.Xangle’s innovative solutionsXangle is also set to launch blockchain data-based corporate solutions catered to virtual asset and Web3 businesses later this year. One of these solutions, dubbed “Explorer,” will allow search and analysis of on-chain data generated within blockchain networks. The company also announced that it will launch the beta version of Xangle Beacon — a comprehensive service to help Web3 companies operate, manage, and scale their services.

South Korean internet giant Naver has announced that it is monitoring and removing blog posts that promote unregistered virtual asset service providers (VASPs).Photo by Pixabay on PexelsUnregistered status makes promotions illegalAccording to Digital Asset, a Naver official said the practice reflects the fact that unregistered VASPs are subject to criminal penalties, meaning advertisements or promotional content related to them could potentially violate the law. This marks the first instance of Naver publicly confirming its stance on advertising for unregistered crypto platforms. The official noted that this measure had already been implemented before the financial regulator issued a press release in December warning of the illegality of such activities. In December, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) said that referral activities promoting unregistered VASPs through blogs and social media constitute an illegal crypto business. The regulatory clarification prompted influencers on platforms such as Telegram and YouTube to discontinue referral promotions related to these exchanges. Google Play to remove unregistered exchangesIn a parallel move, Google has revealed plans to cease support for unregistered crypto exchange apps on its Google Play Store. Google Korea said the decision was made voluntarily to align with its operational policy of complying with regulations in different jurisdictions. As a result, unregistered platforms will be removed from the Korean market in accordance with the FIU's regulatory rules. Beyond marketing restrictions, scrutiny of crypto exchanges is intensifying as the FSC moves to strengthen oversight. The regulator is reportedly devising a rule that would hold platforms liable for hacking incidents under a strict liability framework, meaning liability could be imposed even in the absence of negligence. According to MTN News, the financial authority is considering penalties of up to 10% of a platform’s revenue for such incidents. However, industry participants have argued that the proposed regulation is excessively harsh. One crypto industry source highlighted the disparity, pointing out that the potential 10% fine is more than three times higher than the maximum 3% penalty imposed on traditional fintech companies. Traditional finance eyes stablecoinsAmid this regulatory tightening, the traditional financial sector is positioning itself within the stablecoin segment. Banks are reportedly discussing whether to seek permission to offer yields on stablecoins, provided these fiat-pegged assets are issued by bank-led consortia. Citing industry sources, Electronic Times Internet reported that the Korea Federation of Banks (KFB) recently held a closed-door meeting with member institutions. The agenda focused on a coordinated response to upcoming regulations governing won-backed stablecoins, which form part of the second phase of South Korea’s digital asset legislation. Discussions included a review of the KFB’s ongoing research into won-backed stablecoins, commissioned to McKinsey & Company. The report, currently at its midpoint and scheduled for release in early February, will examine the feasibility of bank-led stablecoin issuance and explore potential use cases. This move is widely seen as an effort by the banking industry to secure customers and liquidity early on, while protecting its competitive advantage as a group of traditional lenders. The push by traditional financial institutions into stablecoin-related sectors is becoming increasingly concrete. According to another MTN News report, Shinhan Securities has formed a strategic partnership with Etherfuse, a tokenization platform that converts real-world assets (RWAs) into digital tokens. The partnership aims to collaborate on the issuance of "stablebonds" backed by government bonds. The planned issuance will use the ticker KTB, with Shinhan Securities acting as a brokerage responsible for securing and managing the underlying assets rather than serving as the issuer. Similarly, Hana Financial Group has established a stablecoin consortium including BNK Financial Group, iM Financial Group, Standard Chartered Bank Korea, and OK Savings Bank. According to local media outlet News1, the participants plan to raise funds to establish a special-purpose company that will later issue a stablecoin.These developments come as financial authorities move to use legislation to restrict early-stage stablecoin issuance to consortia in which banks hold at least a 50% stake plus one share, citing concerns over market stability.