LINE NEXT enters into a strategic partnership with ReadON

Singapore-based Terraform Labs, the company behind the failed algorithmic stablecoin TerraUSD, has officially filed for Chapter 11 bankruptcy protection in the United States. It appears that the crypto space is not finished with dealing with the excesses and mismanagement that emerged at the end of the last market cycle. This move from Terraform comes in the wake of a $40 billion cryptocurrency crash and ongoing legal scrutiny, with the firm stating its intention to continue operations and support for the Terra community.Photo by Melinda Gimpel on UnsplashBusiness plan executionTerraform Labs was co-founded by Do Kwon, who is currently under investigation for its alleged wrongdoing relative to the failure of TerraUSD. The bankruptcy filing, submitted on Sunday to the Bankruptcy Court for the District of Delaware, aims to facilitate the company's business plan execution while navigating ongoing legal proceedings, including representative litigation in Singapore and the United States involving the Securities and Exchange Commission (SEC). In a statement, Chris Amani, CEO of Terraform Labs, commented on the decision, stating:"The Terra community and ecosystem have shown unprecedented resilience in the face of adversity, and this action is necessary to allow us to continue working toward our collective goals while resolving the legal challenges that remain outstanding." Amani reassured stakeholders that the decision ensures the company can maintain its commitment to working with the community on infrastructure, innovative tools, products and other ecosystem support. Amani became CEO of the company in July of last year, having been acting as Terraform’s COO prior to that. He acknowledged the challenges faced and expressed optimism about overcoming them, highlighting the resilience of the ecosystem after previous hurdles. Liabilities and assets in $100M to $500M rangeThe company emphasized that the Chapter 11 filing is designed to allow it to meet all financial obligations to employees and vendors without requiring additional financing. The estimated liabilities and assets fall within the range of $100 million to $500 million, as indicated in the filing. The SEC has initiated a civil trial against Terraform Labs and Do Kwon, accusing them of orchestrating a $40 billion cryptocurrency fraud through the TerraUSD algorithmic stablecoin and its sister token Luna. The SEC alleges that Terraform Labs and Kwon raised billions of dollars from investors through unregistered transactions, leading to the collapse of TerraUSD and Luna in May 2022. Both the SEC and Terraform have unsuccessfully filed for summary judgment in the case. Far-reaching consequencesThe crash had far-reaching consequences, impacting several crypto firms, including Singaporean crypto hedge fund Three Arrows Capital, Singaporean crypto lender Hodlnaut, Voyager Digital and Celsius Network. Do Kwon, a South Korean national, faces additional criminal charges in the United States related to fraud and market manipulation. His arrest in Montenegro in March 2023 and pending extradition requests from South Korea and the United States underscore the global legal challenges confronting him. The U.S. District Court for the Southern District of New York has scheduled the SEC trial against Terraform Labs and Kwon for late March, accommodating Kwon's extradition process. Meanwhile, in South Korea, Terraform Labs co-founder Daniel Shin has denied wrongdoing in the collapse as part of separate proceedings taken against him.  

The crypto space continues to suffer a disproportionate share of hacks and scams that were further exacerbated on Wednesday, with Malaysian crypto data aggregator the latest to succumb to a security breach. Serving as yet another stark reminder of the persistent threats plaguing the sector, a phishing scam targeted CoinGecko's X account, leading to a brief compromise that raised concerns about the safety of user information.Photo by GuerrillaBuzz on UnsplashPhishing scamDuring this incident, hackers posted a phishing link on CoinGecko's X account, falsely advertising a token airdrop for a cryptocurrency named GCKO. The deceptive post claimed that GCKO could be used for API services, including the cryptocurrency ANKR. Swift action by CoinGecko involved the removal of the fraudulent post and a public warning urging users to avoid interacting with any suspicious links or content. In an X post, CoinGecko wrote:”Our Twitter accounts @CoinGecko and @GeckoTerminal have been compromised. We're taking immediate steps to investigate the situation and secure our accounts. Please DO NOT click on any links or engage with suspicious content. Your security is our top priority.” Employee errorThe firm followed up with an update on Thursday, attributing the breach to a team member inadvertently clicking on a fraudulent Calendly link, granting unauthorized access to the hacker. Despite having two-factor authentication (2FA) enabled and employing robust security measures, CoinGecko emphasized that the inadvertent click allowed unauthorized access. The compromised accounts were then exploited to disseminate misleading information and potentially engage in malicious activities. CoinGecko expressed sincere apologies for any confusion or inconvenience caused by the incident. The company reiterated its commitment to platform security and continuous improvement of internal controls, assuring users that corrective measures were promptly implemented. SEC incompetenceCoinGecko's security incident occurred within 24 hours of a similar occurrence involving the U.S. Securities and Exchange Commission (SEC). The SEC's X account was compromised, with scammers posting a false message from Chair Gary Gensler about the approval of spot bitcoin exchange-traded funds (ETFs). While CoinGecko identified a vulnerability in its security regimen, the SEC later confirmed that the breach in its case was far more basic. It was not due to infrastructure attacks but rather the lack of 2-factor authentication (2FA) tied to the SEC's account, the most basic form of operations security. Gensler and the SEC have come in for major criticism from the crypto community in the U.S. due to a policy of regulation by enforcement that has been pursued. With that, the Commission came in for swift and harsh criticism in the immediate aftermath of its X account hack. Many pointed out the irony of Gensler advising consumers to secure their accounts back in October when the SEC itself had failed to do so. Others queried who would be responsible for what some interpreted as an episode of market manipulation, something that the SEC has perennially associated the crypto markets with. During the time that the account was compromised, millions of dollars of value were liquidated in short and long trading positions. CoinGecko's quick response serves as a valuable lesson in the importance of vigilance and proactive security measures amid the growing threats facing the cryptocurrency community.

OKX Strengthens Partnership with Manchester City Football ClubSeychelles-based crypto exchange OKX has announced the expansion of its sponsorship deal with Manchester City Football Club, the treble-winning English Premier League soccer champions.The announcement was made through a virtual reveal video featuring player avatars, presented at Manchester City’s Etihad Stadium. News of the deal was also posted on the English club’s website on Friday.While the valuation of the deal remains undisclosed, the collaboration signifies a significant milestone for both parties. The new agreement, which spans multiple years, establishes OKX as the official sleeve partner on both the men’s and women’s first-team playing kits.Photo by Giero Saaski on UnsplashExtended partnershipUnder this extended partnership, the OKX logo will be prominently displayed on the sleeves of Manchester City’s playing kits, solidifying its position as a key sponsor. Additionally, OKX will retain its presence on the club’s training kit sleeve.City Football Group, the holding company that owns Manchester City and other soccer teams like New York City FC and Melbourne City FC, oversees the management and operations of the club.OKX initially became Manchester City’s official cryptocurrency exchange partner in March 2022. Subsequently, in July of the same year, the exchange secured a sponsorship deal to feature its logo on the front of the club’s training kit throughout the 2022/2023 season. At the time, the agreement was reported to be valued at over $12 million.OKX CollectiveIn February, OKX launched the “OKX Collective” alongside Manchester City players Jack Grealish, Rúben Dias, Ilkay Gündoğan, and Alex Greenwood. This immersive metaverse fan experience offered exclusive content and rewards, allowing fans to engage with the club in a unique way.OKX’s CMO Haider Rafique expressed satisfaction with the evolving partnership, stating: “Manchester City was our first official global brand partnership, and in just a year and a half, we have come a long way. We always intended to integrate with the sport and help the club lead on leaning into Web3. Fast forward fifteen months, we now have a metaverse, an NFT initiative, and a number of other new projects that we are excited about.”Additional sports sponsorshipsBesides Manchester City, OKX has also established partnerships with other prominent sports brands and athletes, including McLaren Formula 1, the Tribeca Festival, Olympian Scotty James, and F1 driver Daniel Ricciardo.While OKX’s partnership with Manchester City strengthens its global fan base, it’s worth noting that the sale of crypto derivatives, a product offered by OKX, was effectively banned by the UK’s financial regulator in January 2021. Consequently, OKX and other crypto exchanges have refrained from advertising such services in the country.As the Premier League clubs have collectively agreed to restrict gambling sponsorships on team shirts, there are concerns that similar restrictions may be imposed on crypto company sponsorships. However, any such developments are expected to be some years away, as the changes regarding gambling sponsorships are scheduled to take effect in the 2026/2027 soccer season.Marketing spend by crypto firms has sobered up quite a bit since the heady heights of the last bull run. However, OKX remains one entity which has been fairly consistent in continuing its marketing efforts regardless of market conditions.