Thailand’s SEC moves to block five exchanges to protect investors

Roger Ver sues Matrixport over frozen crypto fundsRoger Ver, often referred to as “Bitcoin Jesus,” finds himself embroiled in a legal dispute with Jihan Wu, the co-founder and chairman of Matrixport, a Singapore-based digital assets financial services platform.Photo by Tingey Injury Law Firm on Unsplash$8 million disputeThe crux of the matter is a contentious $8 million that Ver claims Wu withheld from him in connection with the fallout of the unrelated failure of the CoinFLEX crypto platform. This conflict has led to a lawsuit filed by Ver’s counsel in the Seychelles.The legal complaint, which originated last year, revolves around bit.com, a crypto exchange owned by Matrixport, refusing to allow Ver to withdraw his $8 million. Wu, a creditor of CoinFLEX, contends that he incurred financial losses due to the exchange’s restructuring.However, Ver asserts that the insolvency of CoinFLEX, an unrelated entity, should not be tied to the funds owed to him by Matrixport. Off the back of that assertion, Ver confirmed to The Block that in August 2022, he sued Smart Vega Holding Limited, a Seychelles-incorporated subsidiary company of Matrixport, for $8 million.Ver asserts CoinFLEX collapse innocenceRoger Ver maintains that he is not to blame for CoinFLEX’s collapse. He states that the narrative emerged due to breaches of confidentiality regarding the arbitration between CoinFLEX and himself. It emerged last month that creditors of CoinFLEX had taken legal action against its CEO, Mark Lamb, as well as Ver. It’s understood that Ver had benefited from a settlement negotiated with Lamb. Creditors are seeking to recover any benefit realized by Ver as a consequence of this settlement.Ver told Coindesk in an email that he initiated arbitration proceedings against CoinFLEX in June 2022, seeking $200 million in damages. He maintains he was the plaintiff in this case, not CoinFLEX, which later filed a counterclaim for $84 million.Confidentiality is a key aspect of arbitration proceedings, especially in Hong Kong where the arbitration took place. Despite this, it is alleged that Lamb broke this confidentiality, which led to the misrepresentation that CoinFLEX was the plaintiff in the case. Ver firmly believes that CoinFLEX’s insolvency was primarily due to market turmoil in May 2022 and poor risk management on the part of its co-founders.Matrixport standing firmWhile Matrixport does not deny withholding the cryptocurrency from Ver, it argues that Ver should repay his debt to CoinFLEX, which is a creditor of Ver. Once this is done, CoinFLEX will release monies owed to Wu.The dispute also touches on the terms of service. Matrixport maintains that it has the right to withhold funds for penalties related to defaulted margin calls and legal fees and it is committing significant legal resources to defend its position. Ver’s attorney counters this argument, stating that Matrixport’s terms of service do not permit such penalties and that there is no legal justification for withholding the funds.Matrixport claims that the funds are being held because of an investigation into Ver’s “margin trading irregularities.” The company’s Head of Public Relations and Brand, Ross Gan, said that Ver “continues to make unreasonable demands.” Gan added:“We will respect the legal process and the ultimate Court ruling on this case and reserve all our rights to take further legal action in this ongoing dispute with Mr. Ver.”

Vauld Implements Key Leadership Changes Amid Bankruptcy ProceedingsFailed Singaporean cryptocurrency lender Vauld has unveiled a comprehensive overhaul of its board structure.Photo by Yibei Geng on UnsplashOngoing restructuringThe platform, which faced financial turmoil leading to its declaration of bankruptcy last year, is introducing fresh leadership to spearhead its restructuring efforts. The move involves the appointment of a new CEO, a creditor representative, and a scheme manager.The current CEO and Co-Founder of Vauld, Darshan Bathija, announced the proposed changes via a post on X (formerly Twitter) on Thursday. He emphasized that the new appointees would take charge of orchestrating a much-needed bailout.The challenges faced by the company through its ongoing bankruptcy proceedings have prompted Vauld to secure court approval for this new organizational scheme. In his social media post, Bathija stated:“Vauld (Defi Payments Pte Ltd) got its scheme of arrangement passed in Singapore courts. As part of the scheme, the current board will be replaced with a new CEO, a creditor representative, and a scheme manager.” Additionally, Bathija noted that the exchange’s customers are actively updating their Know Your Customer (KYC) details.This announcement comes almost a year after Vauld came under scrutiny due to a money laundering investigation. The cloud of suspicion surrounding the firm at the time led to the freezing of assets worth $46.4 million from its domestic operations by Indian authorities.Nexo acquisition failureIn February of this year, the Singapore High Court granted Vauld an extension until March 24 to formulate a comprehensive strategy for repaying its creditors. The extension became crucial after a potential acquisition deal with Nexo fell through. However, despite this reprieve, the exchange was unable to secure a further extension, fueling discussions within the community about the challenge of meeting creditor obligations within a relatively short time frame.In a step to facilitate the resolution of outstanding amounts, the court established a committee of creditors (CoC). This move was prompted by allegations from a faction of creditors that Vauld was impeding communication and implementing unwarranted corrective measures. Notably, the exchange owes more than $2.2 million to these creditors.Vauld has contracted the services of risk and financial advisory firm Kroll as part of the restructuring efforts. In an isolated instance of good fortune, it appears that Vauld creditors are unaffected by a data breach which occurred recently at Kroll, while creditors of the Genesis, FTX, and BlockFi crypto bankruptcy processes have had their data compromised.Charting a path forwardBathija conveyed that more updates regarding the platform’s path forward would follow soon. Vauld’s financial instability can be attributed to several factors, chief among them being the ripple effect of Terra’s downfall. Further complications arose due to economic issues tied to the Celsius Network and Three Arrows Capital (3AC) defaulting on their loans. These cumulative challenges led to Vauld’s operational suspension.Despite this failure and similar issues relative to crypto lender Hodlnaut and 3AC, which were also based in the city state, Singapore continues as a jurisdiction that effectively balances regulatory control with the drive to foster innovation. Its central bank and financial regulator, the Monetary Authority of Singapore (MAS), recently unveiled a comprehensive framework for stablecoins.

Regulated blockchain and digital asset solutions provider Paxos has announced the launch of its latest digital asset, the Global Dollar (USDG), a U.S. dollar-backed stablecoin. The company outlined in a press release published to its website on Nov. 31 that the USDG stablecoin is being issued by its local Singaporean corporate entity, Paxos Digital Singapore Pte. Ltd., with the product being regulated by the Monetary Authority of Singapore (MAS).Photo by Alexander Grey on UnsplashMAS compliant offeringThe company claims that the offering is “substantively compliant” with the stablecoin regulatory framework that MAS intends to roll out imminently. Paxos paved the way for this latest product offering back in July when it obtained a Digital Payment Token license from MAS, enabling it to issue U.S. dollar-backed stablecoins within the city-state. In terms of distribution, Paxos intends to partner with global crypto exchanges, wallets and platforms in an effort to get this new product out into the market.  DBS Bank partnershipIts first partnership with regard to the Global Dollar has already been struck with DBS Bank, Singapore and Southeast Asia’s largest bank based on assets held. DBS will play a role in the custody of USDG reserves and in cash management relative to the project.  Ronak Daya, Head of Product at Paxos, said that “USDG offers a trusted solution with a top-tier banking partner in DBS that will be the catalyst to drive stablecoin innovation and enterprise adoption at a global scale.” This latest product launch appears to be similar to the approach the company has taken in the Middle East. Back in June a United Arab Emirates (UAE)-based affiliate company launched the Lift Dollar (USDL), a yield-generating U.S. dollar-backed stablecoin under the regulatory oversight of the Financial Services Regulatory Authority (FSRA), the regulator within the Abu Dhabi Global Market (ADGM) free zone and international financial center. Running on EthereumThe USDL stablecoin started out on the Ethereum network, with it launching on the Arbitrum network in October. A similar roadmap has been set for USDG, with it launching on Ethereum while Paxos maintains that it “will be issued on more blockchains in the near term.” The Stellar network is likely to be one that it expands to in the future. In October the firm announced an integration with the Stellar Development Foundation, with a view towards expanding stablecoin adoption. Daya said that “enterprise interest in stablecoins has never been higher than it is today, but the market lacks a solution that combines regulatory compliance with real economic incentives for enterprises.” The company has developed an expertise in the issuance of digital assets, with USDG being its sixth such issuance. Last week Paxos outlined that it had launched a stablecoin payments platform with the objective of simplifying global transactions for payments providers and merchants. Paxos has also partnered with the Trump family venture, World Liberty Financial, which plans on launching a U.S. dollar stablecoin with the help of Paxos. The firm’s CEO, Charles Cascarilla, also encouraged both U.S. presidential candidates recently to embrace stablecoins as a mechanism through which to safeguard the continuing influence of the U.S. dollar on a global basis.