Spot bitcoin ETF approval triggers surge and shift in Korean crypto exchange performances

SEC Seeks to Question Co-Founder of Singapore’s Terraform LabsThe United States Securities and Exchange Commission (SEC) has taken a step forward in its ongoing case against Singapore’s Terraform Labs by seeking to question Daniel Shin, the Co-Founder of the company.The SEC's intention is to gather evidence related to Chai Corporation, a payments company associated with Terraform and the Terra blockchain. District Judge Jed Rakoff granted the SEC’s request earlier this week, which is part of the regulatory body’s efforts to build a case against Terraform Labs and its Co-Founder, Do Kwon. The decision was based upon a motion originally filed in July.Photo by Bermix Studio on UnsplashRequesting South Korean assistanceThe motion, which was granted on Tuesday, allows the SEC to reach out to South Korea for assistance in questioning Shin and obtaining documents related to Chai Corporation. The regulatory body aims to gain insights into Kwon’s role at Chai, the utilization of the Terra blockchain by Chai, and the disclosures made by Chai regarding its relationship with Terraform.Additionally, the SEC is interested in understanding the reasons behind Chai’s separation from Terraform, as the two companies shared offices and staff until their split in 2020.No opposition filedOn a previous occasion, Kwon unsuccessfully challenged the SEC's attempt to access company records on the basis of a lack of jurisdiction given that Terraform is a Singapore-domiciled company. In June, both Terraform and Kwon attempted unsuccessfully to have the entire action thrown out.On this occasion neither Terraform Labs nor Kwon have opposed the SEC’s motion. In fact, they have even included their own set of questions and document requests. Both the Singaporean firm and its Co-Founder have denied the SEC’s allegations, which were filed earlier this year.The SEC’s lawsuit claims that Terraform’s cryptocurrencies, specifically Terra Luna Classic (LUNC) and Terra ClassicUSD (USTC), were involved in fraudulent activities. The US regulatory body further alleges that Kwon and Terraform falsely promoted the use of the Terra blockchain by Chai for processing and settling transactions.The SEC’s lawsuit also accuses Terraform and Kwon of fabricating transactions involving TerraKRW (KRT), a Korean won-pegged stablecoin, to give the impression that Chai was actively utilizing the Terra blockchain.Collapse falloutTerra, an interconnected crypto ecosystem, faced a collapse in May 2022, resulting in the loss of approximately $40 billion in value and impacting the wider cryptocurrency market. The aftermath of this collapse led to legal actions against individuals associated with Terraform Labs. South Korean prosecutors, for instance, charged Shin with multiple fraud offenses in April, alleging that he had concealed the risks of investing in Terraform’s cryptocurrencies.Kwon’s legal situation is equally complex. He is currently serving a prison sentence in Montenegro for attempting to leave the country using a fake passport. He faces criminal charges in both the United States and South Korea, and both countries have requested his extradition.The ongoing investigation sheds light on the intricate relationships within the Terra ecosystem, having an impact across different jurisdictions. As legal proceedings unfold, the outcome will likely have implications for the regulation and oversight of cryptocurrency and blockchain projects internationally.

Animoca Brands, a Hong Kong-based Web3 company focused on blockchain gaming and NFTs, has signed a memorandum of understanding (MOU) with DayDayCook (DDC) Enterprise Limited in a deal that will see Animoca allocate up to $100 million in Bitcoin with that capital to be exposed to yield enhancement strategies operated by DDC.Photo by Erika Fletcher on UnsplashBitcoin treasury strategyIn a press release published to its website, Animoca Brands claimed that the deal accelerates the Bitcoin accumulation strategy pursued by DDC. Back in May, DDC Enterprise, a Chinese company listed on the Nasdaq in the U.S. while headquartered in Hong Kong, became one of many Nasdaq-listed companies recently to add Bitcoin to its balance sheet.  At that time, it made a symbolic initial 21 BTC purchase, bearing in mind the leading digital asset has a supply cap of 21 million BTC. The company has set out an ambitious plan to build up a Bitcoin treasury of 5,000 BTC over the course of three years. DDC Founder Norma Chu described the development as a “pivotal moment.” ‘Pristine monetary asset’On this occasion, Chu described the partnership with Animoca as a “transformative step,” reflecting the companies’ “shared vision to accelerate Bitcoin’s role as a pristine monetary asset.” As part of the partnership, Animoca Brands Co-Founder and Executive Chairman, Yat Siu, will join DDC’s Bitcoin Visionary Council (BVC). The company established the BVC recently in order to put strategic leadership and guidance in place so that DDC’s Bitcoin-related treasury operations are conducted in accordance with industry standards so as to maximize value creation in the long term. Siu said that the arrangement enables Animoca Brands “to enhance the value of [its] blockchain technologies and maximize the value of [its] Bitcoin holdings.” Commenting further on the partnership, he added: “We will focus on developing strategies to enhance Bitcoin’s value proposition, leveraging DDC’s commitment to advancing corporate Bitcoin treasury solutions." Siu told Cointelegraph that Animoca Brands' belief in the abilities of the DDC founder played a large part in the company establishing the partnership. He said that her background and experience enable her to “bridge the East and West to successfully navigate markets on both sides of the planet,” adding that “she has good appeal and connections to the Chinese market, one of the largest for crypto adoption, while also running a NASDAQ-listed company.” On BitcoinTreasuries.net, a Bitcoin treasury data hub, DDC is listed as 47th in terms of corporations globally that have adopted a Bitcoin treasury strategy, ranked by the amount of Bitcoin that they have accumulated. The website suggests that DDC currently holds 368 BTC, valued at approximately $43.2 million. Following its initial purchase of 21 BTC in May, the company followed up with the acquisition of 38 BTC in June. On July 1, it announced that it had raised $528 million to expand its Bitcoin holdings, with confirmation of a further purchase of 230 BTC by July 7.

Bitget Achieves 20M Users With Wallet Integration Driving Trading VolumeSeychelles-based cryptocurrency derivatives exchange, Bitget, has experienced remarkable growth in the first half of 2023 surpassing 20 million users, driven by the successful integration of its recently acquired self-custodial wallet service, now renamed Bitget Wallet.Photo by Mike Hindle on UnsplashTop four exchangeThe wallet integration has propelled Bitget into the ranks of the four largest cryptocurrency exchanges by trading volume.According to a second-quarter report by Beijing-headquartered crypto research firm TokenInsight, the top four exchanges collectively account for 85% of the total market trading volume. Binance dominates the market with a 52% share, followed by OKX (15.13%), Bybit (10.6%), and Bitget (8.1%), securing its position among the industry’s leading players.$60 billion spot trading volumeBitget’s Q2 report, released on July 18, revealed that the platform’s spot trading volume surpassed $60 billion, with futures trading reaching a staggering $606 billion. Notably, research by blockchain analytics firm Nansen showcased Bitget as the only exchange to witness an increase in futures trading volumes in the six months following the collapse of FTX.The exchange attributes part of its impressive Q2 performance to the introduction of copy trading, a feature enabling users to emulate the trading strategies of select traders. This innovation proved highly successful, attracting 29,700 new elite traders and 169,800 followers, generating $33 million in profits by mid-2023.Bitget, aligning with leading exchanges like Binance, has released its proof-of-reserves to assure users that it maintains reserves exceeding 100% of all assets on the platform, including Bitcoin (BTC), Ether, Tether, and USD Coin. At the time of publication, the exchange’s current reserve ratio, calculated by dividing the platform’s assets by users’ assets, stood at an impressive 223%. According to that data, the crypto platform is claiming a debt-free status for the business.Regional expansionAs part of its expansion strategy, Bitget has obtained virtual asset service provider registration in Poland and Lithuania in 2023, solidifying its presence in Europe. Additionally, the exchange has announced plans to establish a hub for its operations in that region.Last week, it announced that it was also targeting the Middle East and North Africa (MENA) as part of its expansion plans. To support that effort, it has opened an office in Dubai in the United Arab Emirates (UAE) and hired 60 employees with plans on hiring up to 60 more over the course of the next two years.Crypto loans have been an area that has seen major failures within the sector over the last couple of years. However, this isn’t holding Bitget back from getting involved. Earlier this month, it announced the launch of its crypto loans product, which is aimed at market participants who are seeking alternative funding solutions, backed by digital assets.With Bitget’s rebranding efforts following the BitKeep acquisition and its exceptional growth in user numbers and trading volumes, the exchange is making a concerted effort to position itself so as to effect a global expansion strategy. As the market evolves further, it will be interesting to see how the crypto trading market settles, given that there are now a number of firms in the space actively vying for that business.