CoinFLEX’s Creditors Sue CEO and OPNX in Legal Dispute

Polymarket activity under scrutiny in Taiwan due to election contractsTaiwanese law enforcement is currently delving into the activities of online influencers and community members promoting Polymarket contracts related to the upcoming presidential election which is due to be held on Jan. 13.Polymarket is a New York-based Ethereum-centric prediction market. The platform runs on the Ethereum layer-2 scaling solution network Polygon. The project invites platform users to bet on the outcomes of a broad spectrum of events, ranging from politics to entertainment.Users deposit USDC stablecoin, choose an event to bet on and purchase “outcome shares” through USDC. The user has the ability to trade those shares anytime before the resolution of the contract.Photo by Ethan Lin on UnsplashPossible election law violationsThe Taiwanese investigation came to light in a report by Taiwan-based crypto publication BlockTempo, which was published last week. The investigation comes as concerns arose about potential violations of Taiwan’s Presidential and Vice Presidential Election and Recall Act, which explicitly prohibits gambling on election outcomes.Multiple influencers and crypto community members have reportedly been subpoenaed for their involvement in Polymarket contracts, allowing users to place bets on the January election. At present, the betting pool for the election holds over $300,000, with a market prediction favoring the Democratic Progressive Party’s Lai Ching-te, also known as William Lai, with a 78% chance of winning.However, the legality of such betting activities is in question under Article 88–1 of Taiwan’s election law. It stipulates that anyone gambling on the outcome of an election or recall in a public place or a place open to the public may face imprisonment, short-term detention or a fine of up to NT$100,000 ($3,196.85).Sherman Lin, an attorney at Taipei-based Lin & Partners, emphasized the seriousness with which law enforcement views gambling activities related to presidential elections in Taiwan. He explained that broad legal interpretations under the Presidential Election and Recall Act have led to investigations and convictions of gambling website operators targeting Taiwanese gamblers. Lin stated:“Law enforcement agencies in Taiwan are vigilant in investigating any gambling activities related to presidential elections.”“Broad legal interpretations have been applied to gambling crimes under the Presidential Election and Recall Act, leading to investigations and convictions of gambling website operators in Taiwan targeting Taiwanese gamblers,” he added.Prohibited in United StatesComparing the situation to the United States, where gambling on election outcomes is illegal in most states, Lin noted that enforcing such regulations often falls under the jurisdiction of the Commodity Futures Trading Commission (CFTC). Polymarket’s Terms of Use explicitly prohibit usage by U.S. persons.Despite potential legal consequences for gambling activities in Taiwan, including participation, promotion and platform hosting for betting pools like Polymarket, Lin pointed out that enforcing actions against overseas entities poses jurisdictional challenges. Taiwan’s legal reach is primarily limited to domestic actors, creating complexities in addressing decentralized platforms like Polymarket.Lin suggested that law enforcement may focus on online influencers who promoted the Polymarket contract, as seen in previous cases involving the collapse of the unlicensed crypto exchange JPEX in Hong Kong.Moreover, while there are legal precedents for pursuing centralized entities organizing election gambling, Lin highlighted that no established legal precedent in Taiwan currently exists for decentralized platforms organizing election betting.

U.S. crypto fund targets Asian investors for new $800M growth equity fundDan Tapiero, the New York-based founder of 1RoundTable Partners and 10T Holdings, is on a mission to raise between $700 million and $800 million for his upcoming fourth fund, with a recent focus on Asian investment interest.A recent report by Deal Street Asia pointed out that Tapiero has turned his attention to the potential of inward Asian investment, not least through his recent one-week business trip to the region in early December.Photo by Towfiqu barbhuiya on UnsplashInvestment vehicles1RoundTable Partners was Tapiero’s original investment vehicle, positioning itself as a growth equity fund building a portfolio focused exclusively on growth-stage blockchain and crypto projects. 10T Holdings was established more recently, targeting mid to late stage digital asset ecosystem (DAE) firms as part of its equity fund. Earlier this year, 10T was reported by Bloomberg to have $1.2 billion under management while seeking another $200 million in new funding.10T Holdings has fully deployed its three previous funds, forming a portfolio of 24 active DAE companies, including Gemini, Animoca Brands, Yuga Labs and Deribit. Tapiero’s cautious approach to valuations has been rewarded. He turned down opportunities in FTX and Celsius Network at their peaks prior to both entities failing spectacularly in 2022.Crypto equity fund resilienceThe crypto industry faced challenges, including the collapse of FTX, leading to tighter regulations and reputational damage. Venture investments in the sector saw a decline, with statistics from Galaxy Digital Holdings indicating that Q3 2023’s venture investments were below $2 billion, the lowest since Q4 2020.Tapiero is undeterred and is actively raising his fourth growth equity fund, focusing on “digital asset ecosystem (DAE) companies.” This fund, managed under 1RoundTable Partners, will primarily invest in mature DAE companies with $40–50 million in annual revenue and a market valuation exceeding $400 million. Tapiero’s strategy of targeting lower-risk, growth-stage opportunities aligns with his hedge fund legacy.Asian investor focusTapiero is actively seeking new investors in Asia for Fund IV, targeting a first close in Q1 2024. His efforts are focused on addressing the lack of growth-stage capital, particularly in Asia, where confidence in digital assets has strengthened due to crypto-friendly regulations.The veteran macro investor, who founded Gold Bullion International in 2009 prior to turning his attention to the digital assets space, sees a window of opportunity in the secondary market. Having already invested about $660 million through 10T Holdings, he notes that investors may have only a “six-month window” to capture discounted opportunities.In an interview with Bloomberg earlier this month, Tapiero outlined his view that Q4, 2023 will be the crypto sector’s “best quarter since the bull market.” He added:“We think that the bear market finished in Q4 2022. We had a sideways move for a while and then in July [2023] things sparked off with Larry Fink’s [BlackRock CEO] comments.”As Tapiero navigates the crypto landscape with a strategic focus on growth and risk management, his approach appeals to traditional investors, including major pension funds. Fund IV represents a step toward contributing to the ongoing evolution of the digital asset ecosystem. It’s on that basis that the investment industry veteran is targeting Asian limited partnerships (LPs).

Viver Boosts Business Expansion with Blockchain IntegrationViver, a luxury watch trading platform and subsidiary of Dunamu, which operates the Upbit cryptocurrency exchange in South Korea, is gearing up to expand its business by securing operating funds and implementing blockchain technology to enhance the transparency and security of trades.Photo by Caramel on UnsplashIn particular, designated services in which Viver plans to incorporate blockchain technology include the management of transaction history and the authentication of buyers and sellers, which can be used for watch appraisals and guarantees.“We do not plan to introduce services incorporating blockchain right away this year, but we are exploring ways to bring Dunamu’s strengths in blockchain to Viver,” the platform explained.From acquisition to nurturing growthAfter its establishment in February 2021, Viver was soon acquired by Dunamu, which injected KRW 9.5 billion (approximately $7.2 million) into the company on June 30 of that same year.Since then, the platform has been receiving continued financial support from Dunamu. It received KRW 2 billion in operating funds last year and an additional KRW 5 billion last Wednesday through board approval. In total, Viver has received approximately KRW 16.5 billion in funding from Dunamu over the past two years. “We decided to inject these operating funds to facilitate business growth,” Dunamu explained. The company also filed for trademark rights to Viver in July.This move contrasts with Dunamu’s actions in the first half of the year, where it divested its entertainment subsidiary, rrr Entertainment, for KRW 3 billion and its video production subsidiary, Knowmerce, for KRW 2.7 billion.In its first year of establishment, Viver recorded a net loss of approximately KRW 433 million, followed by a net loss of KRW 3.8 billion in 2022. While it has not yet achieved a turnaround in financial performance, the platform is facing promising outlooks as it has witnessed a substantial tenfold increase in its user base over the past year. Furthermore, since the launch of the service in August last year, the number of products directly listed by sellers as of July this year spiked nearly thirty times, with monthly trade count and transaction volume increasing almost fifteen times.Solid leadership and the beginnings of monetizationViver’s efforts to grow as a commerce service have been led by CEO Moon Jae-yeon and Chief Operating Officer Seo Hee-seon. Moon is known for his expertise in the management of commerce platforms through his experience working at eBay Korea and Coupang. Seo has similarly worked at notable companies such as BGF Retail, Interpark, eBay Korea, and 11th Street.Since Tuesday, Viver has started implementing service fees, signaling its move toward monetization. While transaction fees are still free due to an ongoing promotional event, order management fees are set at 2%, and sellers are now responsible for shipping costs.“Since our platform facilitates brokered trades, there are costs involved in order management, shipping, and our own evaluation and diagnostics processes. We have started charging fees for some of these costs so we could provide an improved trade experience,” Viver explained in regard to these changes.Viver also has its own magazine section, where it recently unveiled a special article for its 100th issue outlining its most popular and expensive high-end timepieces.