Indian government claims Binance isn’t tax compliant

Blockchain Deposit Insurance Corporation (BDIC), an emerging crypto insurer based in Florida in the United States, with corporate headquarters in Bermuda, has disclosed that it is preparing to launch its cryptocurrency insurance platform.Photo by Kindel Media on PexelsStarting point in AsiaIn a press release published on Feb. 11, BDIC outlined that the launch would take place in Q2 2025, with its crypto insurance underwriting service commencing in key Asian markets to begin with.  The company has chosen Asia as its starting point, where it feels crypto adoption continues to build momentum. With that, it specified Hong Kong, Singapore, Japan, Taiwan and South Korea as target markets.  While the initial launch will take place in Q2, the company foresees having expanded into Southeast Asia by Q4 2025. Broader service coverage will follow across the greater Asia-Pacific (APAC) region by 2026, with particular emphasis on entering the Hong Kong market. Company CEO Jeffrey Glusman cited a growing demand for crypto wallet security across Asia. He underlined the growing crypto adoption rate in the region, suggesting that this will encompass 300 million users by 2028. Insurance essential for mainstream adoption Speaking about the product offering more generally, Glusman said that the crypto sector has reached a critical inflection point. With that, he believes that “institutional-grade insurance solutions are essential for mainstream adoption.” He added: “BDIC introduces a new paradigm in digital asset protection, using advanced risk assessment algorithms and real-time monitoring to safeguard users’ holdings.” Token launch The company is also planning to launch a native token for its platform, “BDIC Coin,” in Q2 2025. The purpose of the token launch will be to power the BDIC Foundation Reserve Fund, a reserve which will be used for the purposes of premium payments and claim settlements. Furthermore, the token will enable holders to participate in governance voting relative to the project. BDIC claims that it has established compliance protocols and a whitelist in order to provide for a robust and equitable tokenomics structure. Glusman believes that the timing of BDIC’s launch couldn’t be better. A recent report by information services company GlobalData corroborates his view. The report, published on the back of a GlobalData survey, outlined that only 10.8% of crypto holders worldwide have insurance in place for their digital assets.  The survey data suggests that 41.9% of non-policy holding respondents would purchase such insurance given the opportunity, while a further 26.2% were open to the idea. Theft or hacking of digital assets was perceived to be the most important risk to cover in a digital asset insurance policy in the case of a quarter of respondents. The number of insurers offering crypto-related insurance remains limited. However, it would appear that there’s a significant growth opportunity for firms like BDIC, based on the survey data. While there might be a growth opportunity, there are also challenges. Nischal Shetty, founder and CEO of WazirX, an Indian crypto exchange platform that suffered a $230 million hack in 2024, described the difficulties encountered by the company in trying to get insurance when interviewed last August. He stated: “We tried to get insurance in the past, but we did not get any provider who would be willing to insure these assets. It's not an easy process.”

Web3 Cybersecurity Firm Zyber 365 Raises $100M in FundingZyber 365, a pioneering Web3 startup that combines AI, Web3, and cybersecurity, has recently secured $100 million in funding from the UK-based SRAM & MRAM Group.Photo by micheile henderson on Unsplash$1.2 billion valuationThe substantial investment places Zyber 365’s valuation at an impressive $1.2 billion, while marking a significant milestone for the company, underscoring its promising trajectory.Although now headquartered in London, the company’s origins stem from India with a set of Indian founders, while the firm continues to maintain its strategic operational base in India.The company was founded earlier this year by Pearl Kapur and ethical hacker Sunny Vaghela. The startup stands out for its groundbreaking approach to cybersecurity, offering a decentralized and cyber-secured operating system that upholds the core tenets of environmental sustainability.Indian nucleus of operationsNotably, Zyber 365 has earmarked India as the nucleus of its operations, aiming to harness the nation’s tech talent and vibrant ecosystem to fuel its growth. The recent injection of capital will likely play a pivotal role in amplifying Zyber 365’s expansion initiatives, bolstering its technological capabilities, and cementing its global market presence.The SRAM & MRAM Group, no stranger to the tech investment landscape, has previously demonstrated its confidence in innovative startups. In a similar vein, the group invested $100 million in another India-centric blockchain startup, 5ire, in July of the previous year, valuing it at an impressive $1.5 billion.Broad Web3-based product rangeZyber 365’s portfolio spans a wide spectrum of Web3 products, including Layer-0, Layer-1, and Layer-2 blockchains, decentralized identities, data analytics, a software development kit, a web browser, and even non-fungible token (NFT) marketplaces and initial coin offering (ICO) capabilities.These offerings can be seamlessly integrated as part of a comprehensive Web3 ecosystem or employed as standalone applications tailored to specific user requirements.Sunny Vaghela, the Co-Founder and Chief Product Officer (CPO) of Zyber 365, expressed his enthusiasm about the infusion of capital. He emphasized that this financial boost positions the company to expedite the development of its Web3 and AI products, thereby enhancing its presence in the dynamic tech landscape.Vaghela underscored how Zyber 365’s inventive approach to cybersecurity and its commitment to pioneering technologies set it on a remarkable path toward industry leadership.Mahendra Joshi, Director of the SRAM & MRAM Group, echoed Vaghela’s sentiments, lauding Zyber 365’s exceptional team and disruptive technology. Joshi’s confidence in the investment’s potential to drive outstanding growth and success in the coming years reflects the industry’s anticipation of the startup’s continued evolution.In an era where cybersecurity and innovation are paramount, Zyber 365’s substantial funding from the SRAM & MRAM Group heralds a new phase of growth and advancement. Venture capital investment in the digital assets space has contracted significantly since the last bull market. However, as this deal demonstrates, there are signs of green shoots emerging.With its cutting-edge technology and strategic focus on Web3 and AI, the startup has an opportunity to reshape the landscape of cybersecurity while solidifying its status as an industry trailblazer.

In the aftermath of the massive $235 million hack of the WazirX cryptocurrency exchange on July 18, users and stakeholders are grappling with its devastating consequences. The breach, which compromised a significant portion of the exchange’s reserves, has led to a series of legal, financial and security-related challenges, leaving millions of users uncertain about the future of their funds. The hack and its aftermathWazirX, once a leading Indian cryptocurrency exchange, lost approximately $235 million due to a breach in one of its multi-signature wallets. This included significant amounts of Shiba Inu (SHIB), Ethereum (ETH) and other assets. The hack crippled the exchange, forcing it to temporarily shut down operations and seek a restructuring process under Singapore's insolvency laws. The WazirX hacker has since begun laundering the stolen assets through Tornado Cash, a crypto mixer known for obscuring transaction details. According to blockchain security firm Cyvers, the hacker transferred over 5,000 ETH (approximately $12 million) to a new wallet and laundered $10 million in Ethereum through Tornado Cash. This mirrors the tactics of the North Korea-backed Lazarus Group, which has used similar methods in past high-profile crypto thefts. Photo by GuerrillaBuzz on UnsplashUsers seeking redress and government interventionAs the victims of the hack face uncertainty, over 4 million active WazirX users are expected to suffer a loss of at least 43% of their funds due to the restructuring process. Frustrated by the lack of action from Indian authorities, many users have sought help from Indian Prime Minister Narendra Modi, who was visiting Singapore at the time. Users took to social media to air their grievances and demand justice, urging the government to intervene. WazirX co-founder Nischal Shetty, who is based in Dubai, added to the confusion by stating that he does not know who is responsible for safeguarding user crypto funds on the platform. His statement has fueled outrage among users, who feel abandoned by the exchange’s management. Legal and ownership disputesAmid the chaos, WazirX is also battling a legal dispute over its ownership with Binance, the world’s largest cryptocurrency exchange. Shetty has repeatedly claimed that Binance acquired WazirX, granting it significant control over the platform's operations. However, Binance founder Changpeng Zhao (CZ) refuted these claims in 2022, stating that the acquisition deal was never completed. The uncertainty surrounding the ownership of WazirX has further aggravated users, many of whom are demanding a clear statement from Binance. So far, Binance has remained silent, neither confirming nor denying its involvement. This ambiguity has intensified calls for clarification, with users fearing that a lack of transparency may worsen their chances of recovering their funds. Partial withdrawals and restructuring effortsIn response to the crisis, WazirX has initiated phased withdrawals for users, allowing them to access 66% of their Indian Rupee (INR) token balances. Initially set for September 9, the withdrawal window was moved forward, offering some relief to users. However, many are dissatisfied with the partial access to their funds and are questioning when full crypto withdrawals will resume. WazirX’s legal team has indicated that users may recover only 55% to 57% of their crypto holdings, sparking further discontent. Meanwhile, the exchange has filed a moratorium application in the Singapore High Court, seeking a six-month reprieve from legal actions as it works on a restructuring plan. Looking aheadAs the WazirX saga unfolds, the future of the exchange and its users remains uncertain. The legal battles, ownership disputes and the ongoing laundering of stolen assets pose significant challenges to the platform's recovery. For now, users can only hope that the restructuring process will bring them closer to recovering their lost funds and that authorities will step in to provide clarity and resolution.