Standard Chartered joins with local partners in Hong Kong to launch stablecoin

As cryptocurrencies increasingly position themselves as a recognized asset class and potential hedge against fiat inflation, illicit activity tied to digital tokens is becoming more visible. A recent high-profile case in the UK has brought this issue into sharp focus, centering on a fraud scheme originating in China. According to BBC News, the case involves Qian Zhimin, a woman who raised funds from more than 100,000 investors in China by claiming to operate a crypto mining company that also develops health products. Instead, she laundered the proceeds and fled the country. On Nov. 11, Qian was sentenced to 11 years and eight months in prison by a UK court.Photo by Vasilis Chatzopoulos on Unsplash$6B fraud and lavish lifestyle​Qian entered Britain on a forged passport in September 2017 and proceeded to live an extravagant lifestyle, renting a mansion in Hampstead for over £17,000 ($22,700) per month. She was arrested in northern England in April 2024, and it was found that she held roughly 61,000 Bitcoin, valued at roughly £5 billion ($6.6 billion), having converted portions of her holdings to cover her substantial living expenses. ​The sheer scale of her wealth was revealed after police searched her rented residence, discovering the Bitcoin reserves on hard drives and laptops. It marks the largest crypto seizure ever recorded in the UK. During the raid, officers also found four other individuals at the property illegally employed to handle household tasks such as shopping, cleaning, and security. ​Since Qian’s arrival in the UK, the value of her Bitcoin holdings has appreciated more than 20-fold. With the fraudster now sentenced, victims are seeing a glimmer of hope for restitution. A civil case scheduled for early next year will determine the fate of the seized assets. However, while many defrauded Chinese investors are reportedly preparing to file claims, establishing a clear paper trail may prove difficult. Many victims routed funds through local intermediaries rather than transferring them directly to Qian’s firm. ​U.S. Bitcoin forfeiture and Beijing’s allegationsWhile the UK courts grapple with the aftermath of Qian’s fraud, a separate crypto controversy is brewing between the U.S. and China, highlighting Beijing's continued vigilance over the sector despite its 2021 ban on trading and mining. According to Cointelegraph, the state-supported National Computer Virus Emergency Response Center (CVERC) has alleged that American authorities are connected to the disappearance of roughly 127,000 Bitcoin, valued at around $14.5 billion, from the LuBian mining pool. ​These allegations surfaced after the U.S. filed a civil forfeiture claim in October against Chen Zhi, the Cambodia-based founder of the Prince Group, who is believed to have owned the assets prior to the breach. At the time of the filing, the U.S. Treasury Department noted that the funds were already under its control. ​CVERC contends that Washington hasn't explained how it accessed the assets. Citing data from analytics firm Arkham, the Chinese agency suggested the funds had been under U.S. control for over a year. They argued that the prolonged inactivity of the Bitcoin before the formal seizure is inconsistent with the typical behavior of hackers seeking quick profit, implying state-level involvement. Economic chess between Washington and BeijingThis matter of Bitcoin control adds a new layer of complexity to U.S.–China relations, even as a trade truce between the two countries took effect on Nov. 10. In a report by CNBC, Washington cut tariffs on China’s fentanyl-linked imports to 10% and extended a reciprocal rate reduction under that agreement. In exchange, Beijing is said to have eased certain restrictions on rare earth exports. Analysts at Morgan Stanley suggest that China is maintaining its export-control regime, implemented in April, to retain strategic leverage. They caution that recurring negotiations and strategic divergence will remain defining features of the evolving bilateral relationship. 

Nassau and Treasure Labs Go Metaverse to Step into the Future of StyleKorean sports equipment manufacturer Nassau has entered into a partnership with metaverse company Treasure Labs to step into the future of style.According to a report by local news agency News1, this collaboration aims to introduce an innovative fashion brand on Pararium, the metaverse platform developed by Treasure Labs. Pararium users will have the opportunity to enjoy unique fashion items through their avatars while engaging in virtual experiences and earning rewards.Photo by Ben Hershey on UnsplashSports brandHaving built a reputable brand over the course of 50 years, Nassau is widely recognized in Korea for producing durable sports goods. By joining forces with Treasure Labs, Nassau aims to tap into the potential of Web3 content and services to enhance its global market presence.Metaverse platformTreasure Labs has been establishing a strong presence in the metaverse sector through collaborations with various entities such as blockchain platform Solana Labs, cryptocurrency exchange Crypto.com, and decentralized gaming platform The Sandbox. Notably, Treasure Labs is the first Korean company to secure investment from the Solana Foundation, the sister organization of Solana Labs.Both companies are enthusiastic about the prospects of this partnership. A representative from Treasure Labs emphasized that the collaboration will introduce a creative fashion brand that appeals to millennials and Generation Z, bridging the virtual and real worlds within the metaverse. The representative further mentioned plans to establish a dedicated brand hall within Pararium, where a series of events will showcase unique and trendy Web3 content. Echoing this sentiment, a Nassau official anticipates that the collaboration will give both firms a competitive edge in the global market.

Singapore-headquartered crypto exchange platform Crypto.com has boosted its standing amongst its peers by achieving the largest spot crypto trading volume for the month of July where USD-supported exchanges are concerned. According to data published by The Block, the exchange platform achieved $68.85 billion in spot trading volume among USD-supported exchanges in July out of an overall total of $178.84 billion. American exchange platform Coinbase was next in the rankings, with a July trading volume total of $63.97 billion.Photo by Alexander Grey on UnsplashInstitutional client boost It’s understood that the uptick in trading volume experienced by the exchange platform is as a consequence of an increase in the number of institutional clients using Crypto.com’s trading services.  Giuseppe Giuliani, the managing director of Crypto.com, told Cointelegraph that more institutional clients are using the platform due to an improved product offering, together with stronger market conditions. Giuliani stated: “This growth has been primarily driven by the acquisition of new clients on the platform, both large institutions and advanced retail traders, and is being supported by stronger market conditions in 2024.” Giuliani told The Block that growth on the platform has played out over the medium term, stating:  "We have seen incremental market share growth month on month over the last 18 months.” Driving Bitcoin unit price Institutional adoption has been a developing theme in 2024. Some analysts have pointed to its importance in the attainment of an ever higher Bitcoin unit price. Crypto market analyst Willy Woo has suggested recently that a 3% allocation by institutions could lead to a Bitcoin unit price of $700,000. In its most recent quarterly report, global investment bank Canaccord Genuity outlined that there is growing institutional adoption relative to spot Bitcoin exchange-traded funds (ETFs). The launch of spot Ethereum ETF products in the U.S. last month is also understood to have helped towards an improved monthly trading volume for Crypto.com. Giuliani stated: “In the week of July 21 during which Ether ETF was launched, we have seen double-digit growth in our exchange’s Ether spot and perpetual volume week-on-week, building on consecutive weeks of robust volume growth.” Furthermore, the exchange platform claims to have seen increased interest and market participation from TradFi firms. Growing through licensing and sponsorship Crypto.com has attempted to further its market impact worldwide, including in Hong Kong, having applied for a trading license in the Chinese autonomous territory in February, and succeeding in that endeavor more recently according to subsequent reports. It received a license from the UK’s Financial Conduct Authority (FCA) in 2022, with the FCA awarding the company a further license, an Electronic Money Institution (EMI) license, in 2023. High profile sports sponsorships is another marketing strategy the firm has pursued in recent years. The company has claimed to be reaping the rewards of these deals, which it has made in Formula 1 (F1) motor racing and the Ultimate Fighting Championship (UFC).