Singapore High Court Embraces NFTs for Financial Investigations

The trustee of the failed Japanese cryptocurrency exchange Mt. Gox is preparing to initiate repayments of bitcoin (BTC) and bitcoin cash (BCH), prompting fears of a market sell-off among traders and investors.Photo by Dmytro Demidko on UnsplashConfirming repayment detailsThe crypto community on the /mtgoxsolvency subreddit disclosed that the Tokyo-based bitcoin exchange has initiated the process of verifying creditors' addresses for forthcoming repayments. Emails have been sent to creditors, confirming that their repayment details have been validated with relevant cryptocurrency exchanges. The communication from Mt. Gox appears to be staggered, with users on different platforms receiving emails at varying times. Some Bitstamp users reported receipt of the email, while several Kraken customers mentioned that they were still awaiting the confirmation. Mt. Gox, cautioning creditors, clarified that users with disabled or frozen accounts would not be able to receive repayments using the provided addresses. Additionally, the emails specifically pertain to payments in bitcoin and bitcoin cash. This recent communication follows Mt. Gox's announcement in November, where it committed to returning approximately 142,000 bitcoin, 143,000 bitcoin cash and 69 billion Japanese yen, valued at over $5.67 billion at the announcement date and approximately $6.46 billion at the present moment. During the November announcement, Mt. Gox assured creditors that repayments would commence in the following months and weeks. Creditors with payment methods deemed "effective at this time" were earmarked to receive their assets first. Towards the end of December, some creditors reported the addition of yen-denominated balances to their PayPal accounts by Mt. Gox, signaling progress in the repayment process. Market fearsThe fear among market participants of a distribution of bitcoin from the Mt. Gox estate has cast a shadow over the sector over the course of a number of years. With this latest development, it appears that the estate is finally on the cusp of executing on that distribution. If distribution is achieved in the short term, it will come at a time when bitcoin has experienced a major unit price pullback already. Since the approval of spot bitcoin exchange-traded funds (ETFs) in the United States earlier this month, it appears that another bankrupt crypto exchange, FTX, has sold $1 billion worth of Grayscale Bitcoin ETF shares into the market. That move is believed to have been responsible for a dramatic drop in bitcoin’s unit price. In tandem with that event, some commentators believe that a pullback at this point is healthy for the market. That’s the view of Charles Edwards, founder of Capriole Investments. Taking to social media, Edwards wrote:”We're still not here yet. This pullback is very overdue and lower is healthier.” At the time of writing, bitcoin has a unit price of $39,884, down from a high earlier this month of $48,494. Confirmation emails have been reported by several Reddit users, with Bitstamp confirming for most, and a few Kraken users also acknowledging receipt. Nevertheless, a significant number of Kraken users mentioned they are yet to receive the confirmation email. Mt. Gox officially closed its doors in February 2014, almost a decade ago, after succumbing to an exploit in 2011.  

Korean Financial Authority Orders Suspension and Levies $1.4M Fine on Crypto Lender DelioDelio, a cryptocurrency lending company based in South Korea, has received a directive from the financial regulatory authority to cease its operations for a duration of three months, according to local news agency Yonhap. Additionally, the company has been levied with a fine amounting to KRW 1.896 billion ($1.4 million).Photo by Riva Ferdian on UnsplashExecutive dismissal recommendedThis announcement was made on September 1 by the Financial Intelligence Unit (KoFIU) under the South Korean Financial Services Commission. In addition to the measures mentioned above, the KoFIU advised the company to remove one of its executives.As a virtual asset service provider (VASP) registered with the financial regulatory authority, Delio offered deposit services with an annual yield reaching up to 10.7%. However, in June of this year, the company abruptly halted its withdrawal services, prompting investigations conducted by both the KoFIU and public prosecutors.Involvement with unregistered VASPsThe KoFIU saw that Delio had engaged in trading activities with unregistered VASPs and had also breached the restrictions on the trading of affiliate-issued virtual assets. These actions are prohibited under the Financial Transaction Information Act.The financial authority identified a total of 171 instances in which Delio facilitated the transfer of its customers’ virtual assets to unregistered VASPs located outside the country. Additionally, the authority also uncovered the company’s engagement in storing the virtual assets of unregistered VASPs.It was also discovered that Delio had not only neglected to assess the risks of money laundering before introducing new products or services but had also failed to fulfill Know Your Customer (KYC) obligations.

Iranian authorities last week introduced new restrictions on stablecoin transactions, limiting individuals to an annual purchase cap of $5,000 and a total holding limit of $10,000. According to a report from Iran International, licensed digital platforms have one month from the effective date to enforce these new regulations on all users.Photo by Hadis Malekie on UnsplashRial decline fuels stablecoin uptakeThe move coincides with the continued devaluation of the national currency, with the Iranian rial reaching an all-time low of 1,136,500 per U.S. dollar on Sept. 27. This currency plunge occurred just before the reimposition of United Nations sanctions, which took effect at 00:00 UTC on Sept. 28. Since then, the rial has weakened further, reaching a new low of 1,170,000 per U.S. dollar as of publication, as per data from Bonbast.  For many Iranians, stablecoins like USDT have become an essential financial tool, providing a hedge against inflation and a means to transfer funds internationally, bypassing the traditional banking system. The adoption of these U.S. dollar-pegged digital assets has reportedly grown since the escalation of conflicts with Israel and the U.S. earlier in the year. These new financial controls follow recent actions by the U.S. to counter what it describes as Iranian "shadow banking" networks. On Sept. 16, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two Iranian financial operatives and their network of companies in Hong Kong and the United Arab Emirates (UAE). A press release stated these entities used cryptocurrency and front companies to transfer funds from oil sales, benefiting Iran’s IRGC-Qods Force (QF) and its Ministry of Defense and Armed Forces Logistics (MODAFL). The U.S. Treasury asserts these funds are funneled into regional proxy groups and the development of advanced weapons programs.U.S. dollar to rial chart Source: BonbastHack on Iran’s top crypto platformIran’s private digital currency sector has also faced mounting security pressures. In June, Nobitex, the country’s largest crypto exchange, was hit by a major exploit that drained about $90 million in assets, including Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Solana (SOL), Tron (TRX), and TON. A pro-Israel hacker group known as Predatory Sparrow, or Gonjeshke Darande, later claimed responsibility in a post on X. The attack took place during heightened military tensions that began with Israeli strikes on Iranian military and nuclear facilities on June 18, 2025. According to analysis by TRM Labs, digital assets are increasingly integral to Iran's efforts to navigate international sanctions and advance its geopolitical interests. Iranian exchanges, including Nobitex, process billions in cryptocurrency transactions. These platforms have been noted for permitting large withdrawals without stringent Know Your Customer (KYC) protocols and for employing sophisticated methods to obscure the origins and destinations of funds. At the same time, these exchanges are not used solely for state-level purposes. For many ordinary Iranians, grappling with inflation and economic isolation, digital assets represent a practical tool for safeguarding savings and maintaining limited access to the global economy, underscoring the dual role that cryptocurrency plays in the country.