Rotonda launches crypto wallet service Burrito Wallet in Latin America

Gate.io Threatens Legal Action Against SpeculatorsGate.io, the erstwhile legacy Chinese cryptocurrency exchange currently headquartered in the Cayman Islands, has issued a stern warning to individuals spreading rumors of imminent bankruptcy.The exchange intends to take legal action against those responsible for causing panic among investors by disseminating baseless rumors without any concrete source of information. This announcement, originally written in Turkish, was posted on Gate.io’s official Twitter account on June 4.Photo by Kai Pilger on UnsplashInsolvency rumorsThe insolvency rumors surrounding Gate.io emerged following a series of events involving Multichain, a troubled cross-chain protocol. Multichain has been facing technical difficulties since May 24, when a node issue resulted in transaction delays. Several days later, the Multichain team revealed that they were unable to contact their CEO to access the servers and resolve the problem.These circumstances fueled speculation that the protocol’s leadership had been arrested and that Chinese authorities had seized over $1.5 billion in smart contract funds.On May 24, data from blockchain analytics firm Arkham Intelligence indicated a significant inflow of Multichain tokens ($MULTI) from Gate.io’s platform. In response to mounting concerns, Gate.io categorically denied any liquidity issues on May 31. The exchange asserted that its operations were running smoothly and that withdrawals were not a problem. Despite reports on Twitter and Telegram channels of traders withdrawing funds, Gate.io’s trading volume has remained relatively stable in recent days.As of now, Gate.io’s native token, GateToken ($GT), is trading at $4.01, representing a 18% decline over the past week, according to CoinGecko data. Gate.io, which although headquartered in the Cayman Islands, has recently expanded its presence to Hong Kong, Turkey, and Dubai.Multichain falloutThe ongoing issues faced by Multichain have prompted other cryptocurrency exchanges to take action. Binance, for example, suspended deposits for 10 bridged tokens on the BNB Smart Chain, Fantom, Ethereum, and Avalanche blockchain networks on May 25. Furthermore, transaction downtime compelled the Fantom Foundation to remove 449,740 $MULTI ($2.4 million) from liquidity on the decentralized exchange SushiSwap.Gate.io’s firm denial of insolvency rumors coupled with its threat of legal action underscores the exchange’s determination to combat the spread of this speculation. The exchange is seeking to protect the interests of its investors and maintain the stability of its operations.All stakeholders need to rely on continued vigilance in the crypto space. However, if Gate.io is to be afforded the benefit of the doubt in this instance, then it could be interpreted that it is demonstrating a commitment to transparency and swift action in the face of seemingly baseless rumors. On that basis, the firm’s response could be perceived as a demonstration of its resolve to navigate the challenges presented by the Multichain situation and uphold its reputation as a reliable cryptocurrency exchange.

Illiquid Token Sinks OPNX’s $30 Million Hodlnaut BidThe interim judicial managers overseeing the restructuring process of troubled Singaporean crypto lender Hodlnaut have firmly opposed the takeover offer presented by OPNX, the Dubai-based crypto bankruptcy claims trading platform associated with the founders of the now-defunct hedge fund, Three Arrows Capital.Photo by Image Hunter on PexelsSpeculative token valueIn a report published on Tuesday, Bloomberg referred to a recent court filing in which the administrators of Hodlnaut had characterized OPNX’s $30 million bid in FLEX digital tokens as “illiquid” and bearing “speculative value.” Additionally, a significant portion of Hodlnaut Group’s creditors, representing 60% of the total debt, had also voiced their dissent towards the proposed OPNX deal.Hodlnaut, headquartered in Singapore with operations in Hong Kong, found itself among the casualties of the $1.5 trillion crypto market downturn last year. OPNX had expressed its interest in taking control of Hodlnaut last month.Among the concerns raised by managers were the absence of a cash injection or assets with readily available liquidity, such as Bitcoin or Ether. Furthermore, there was no clear timeline provided for the repayment of creditors’ debts, and the proposal lacked detailed information regarding payments, which are limited to just 30% of liabilities, according to the court-appointed supervisors of Hodlnaut’s restructuring.FLEX token offeringThe FLEX token, associated with the CoinFLEX exchange, whose founders Mark Lamb and Sudhu Arumugam launched OPNX earlier this year, is at the center of the proposal. Currently, it holds a market value of approximately $54.4 million. However, its trading volume remains low. Moreover, its unit value stands at $0.55, marking a substantial 95% decrease from a month ago when the offer was first submitted to the Singapore court, as per data from CoinGecko.The deal would have meant OPNX taking a 75% stake in the business. Previously, Hodlnaut’s founders Simon Lee and Zhu Juntao had put forward a proposal of a business sale rather than liquidating the company as the preferred option.Su Zhu and Kyle Davies, co-founders of Singapore’s Three Arrows Capital, played instrumental roles in the inception of OPNX, joining with the CoinFLEX founders in establishing the bankruptcy claims trading platform. Despite their initial contributions, it’s worth noting that Zhu has previously clarified that neither he nor Davies are involved in the day-to-day management of the exchange.Regulatory sanctionsIn recent developments, Zhu and Davies were sanctioned with a nine-year ban by the Monetary Authority of Singapore due to violations connected to their collapsed hedge fund firm, which operated out of Singapore. Furthermore, in August, authorities in Dubai levied fines against Zhu, Davies, Mark Lamb, OPNX CEO Leslie Lamb, and Arumugam for operating and promoting OPNX without the required local license.The rejection of OPNX’s bid by Hodlnaut’s bankruptcy administrators underscores the challenges implicated by illiquid tokens. The fate of Hodlnaut remains uncertain, pending further developments in the ongoing legal proceedings, and will depend upon its management’s efforts in finding a new buyer for the business.

Web3 firm AIITONE rebrands as BU Technology, adding new business objectivesAIITONE, a Web3 and military technology firm located in South Korea, announced on Monday (local time) that it has rebranded and will now be known as BU Technology.Photo by Steve Johnson on UnsplashElectric trains, batteries as new objectivesDuring an extraordinary general meeting of shareholders on October 5, the company formerly known as AIITONE announced a change in its corporate identity to BU Technology. This rebranding coincides with an expansion of the company’s business objectives to include the manufacturing of electric trains, batteries and charging devices. With this move, BU Technology aims to diversify its sources of revenue.The meaning behind ‘BU Technology’BU Technology, which stands for “Beyond Your Technology,” embraces the motto “Beyond Your Today, Beyond Your Expectation, Beyond Your Imagination.” This slogan reflects the company’s ambition to be a forward-thinking tech enterprise that exceeds the expectations and imaginations of its customers.BU Technology applies extended reality (XR) technology to develop computer-based training (CBT) programs and simulators for military use. It’s also ventured into creating content for industrial safety that uses augmented reality (AR) and virtual reality (VR) technology. This content is recognized for its technical quality, notably in replicating realistic effects, including sound, wind and physical sensations.The fresh corporate identity and resolve of BU Technology are also anticipated to make a positive impression on its operations in the Middle East. Earlier this year, the company inked a memorandum of understanding (MOU) with the Royal Private Office of His Highness Sheikh Ahmed Bin Faisal Al Qassimi in the United Arab Emirates (UAE). This agreement is directed at strengthening the fintech sector across South Korea, China and Japan.Additionally, in September, BU Technology successfully launched a proof-of-concept (PoC) platform tailored for the blockchain-based security token projects of securities and financial firms. This PoC platform enables the testing and demonstration of the viability and operational processes related to security token ventures.Lee Jin-yeop, CEO of BU Technology, said that the rebranding effort is aimed at enhancing the company’s brand value and introducing a fresh image for the firm. He further emphasized that BU Technology is committed to advancing the three foundational pillars of its business: military applications, XR and blockchain technology.Lee stated that incorporating new business objectives is a strategy for diversification, intended to elevate the company’s overall value. He also expressed his commitment to steering the newly rebranded BU Technology towards becoming a frontrunner in the Web3 era.