Shanghai launches international digital yuan hub to boost global use

EOS Granted Whitelist Approval by Japanese RegulatorsThe open-source layer-1 blockchain platform EOS has secured whitelist approval from the Japan Virtual and Crypto Asset Exchange Association (JVCEA).The EOS Network Foundation, an entity established with a view towards supporting and safeguarding the development of the EOS blockchain network, announced the approval via a blog post published to its website on Wednesday.EOS raised eyebrows with a staggering $4 billion initial coin offering (ICO) back in 2018. This approval will likely act as a shot in the arm for the project, given the period of relative stagnation that has followed the ICO.Photo by Paul MARSAN on UnsplashEOS price respondsThe approval paves the way for EOS to be traded against the Japanese yen, potentially opening up new avenues for the cryptocurrency’s adoption and utilization. The endorsement has had an immediate impact on the EOS token’s value, driving its price up by 5.54% over the course of the past seven days in a surge of market activity.At the time of writing, the EOS token is trading at $0.622 with an accompanying market capitalization of $696 million. This positive market response underscores the significance of regulatory greenlights in the cryptocurrency sphere.Mid-September trading launchThe Japanese Financial Service Authority (FSA) will oversee the regulation of EOS trading on local Japanese crypto exchange BitTrade, a well-established platform in the Japanese crypto space. The anticipated commencement of EOS token trading on BitTrade is slated for mid-September.The EOS development team is coming out the better end of its interaction with regulators in this instance. However, that hasn’t always been the case. In 2019 the Securities and Exchange Commission (SEC) in the United States fined technology company Block.one, which at that time was responsible for the EOS ICO. All things considered, the sanction was recognized by most in the crypto space as being very much on the lighter end.Fostering Web3 growthJapan’s crypto ecosystem has been actively seeking ways to integrate and foster the growth of the Web3 industry. Its regulators have been lauded more recently, given that Japanese customers of failed crypto platforms like FTX were protected from those failures due to regulatory rules that insisted upon crypto platforms ring-fencing and safeguarding user funds.There have also been several initiatives taken to collaborate with international regulators on developing regulatory standards relative to digital assets. Earlier this month, the Japanese Financial Accounting Standards Foundation (FASF) met with the Korea Accounting Institute (KAI) to work on establishing accounting standards for digital assets.Japan’s Financial Services Authority (FSA) is also participating in Singapore’s Project Guardian, an initiative driven by the Monetary Authority of Singapore (MAS) to explore the potential of digital assets.Prime Minister Fumio Kishida’s supportive stance on Web3, describing it recently as “the new form of capitalism,” further reinforces Japan’s ambitions to establish itself as a hub for cryptocurrency activities. This regulatory nod for EOS could potentially mark the beginning of a broader trend, attracting more projects and investments to the Japanese crypto sector.

$120M Crypto Ponzi Scheme Exposed in IndiaIn a recent crackdown, local authorities in the state of Odisha in India, have dismantled a massive $120 million cryptocurrency Ponzi scheme.That’s according to a report by local news agency ANI earlier this week. The operation led by the Economic Offences Wing (EOW) of the state police has resulted in the arrest of key individuals orchestrating the fraudulent endeavor. This latest development underscores the growing concerns around cryptocurrency scams and their detrimental impact on investors.Photo by Ayiman Mohanty on UnsplashSTA crypto tokenThe mastermind behind the Ponzi scheme had adeptly evaded capture by frequently changing locations. The scheme, operating across India, revolved around the STA crypto token, a digital asset at the heart of the fraudulent activities.Similar to the infamous OneCoin scandal, where billions were swindled from unsuspecting investors, the STA token scheme exploited victims who had invested in the token and then recruited others under the guise of a multi-level marketing initiative. Promised bonuses and extravagant returns were used as bait to lure individuals into the scheme, which eventually unraveled, leaving numerous investors financially devastated.Unregulated token offeringReports highlight that the STA token was not authorized by any regulatory body. This glaring absence of oversight enabled the scammers to continue their operations unchecked. The nature of the scheme involved recruiting victims in various Indian states who were promised substantial returns. These victims, in turn, were enticed to bring in new investors, creating a vicious cycle of recruitment and investment.The investigation into the scheme revealed that the STA token offering attracted individuals through aggressive promotional strategies. This allowed the scheme to establish a vast network across India, involving approximately 200,000 individuals. The victims were led to believe that their investments would yield significant bonuses and returns, a tactic that echoes the tactics used by OneCoin promoters.False claimsThe STA token was introduced in September 2021 and rapidly established a presence on social media platforms, presenting itself as a legitimate cryptocurrency. It falsely claimed to be a blockchain-based platform connecting users with local farmers. This facade lent an air of legitimacy to the scheme, effectively deceiving unsuspecting investors.The scheme’s audacity was further highlighted by a grand event hosted by STA criminal promoters in a luxurious hotel in Goa. This extravagant affair aimed to further legitimize the project and attract more victims.This incident adds to a series of cryptocurrency-related scams that have plagued India. The GainBitcoin scam, which came to light last year, led to the loss of over $1.25 billion for around 100,000 victims. The Indian authorities have responded by issuing public advisories warning citizens against falling victim to such schemes that promise quick wealth through cryptocurrency investments.In a recent parliamentary session, Minister of State for Finance Pankaj Chaudhary revealed that the Enforcement Directorate (ED) is actively investigating multiple instances of cryptocurrency-related fraud. These investigations have uncovered proceeds of crime amounting to over $130 million.

Dispute Embroils Bitget in Legal Battle With Crypto InfluencerBitget, the crypto exchange registered in Seychelles, finds itself entangled in a legal dispute with prominent crypto influencer Evan Luthra.Photo by Tingey Injury Law Firm on UnsplashAccount freezing allegationsThe conflict stems from Luthra’s allegations of account freezing and loss of funds after a token listing incident in March. Luthra has filed a lawsuit against Bitget, accusing the exchange of withholding $200,000 in Tether (USDT) without adequate explanation, while also freezing his account.The legal drama follows Luthra’s involvement with the Reel Star project, where he served as an advisor for the platform which is aimed at creators. As compensation for his collaboration with the project, Luthra received Reel Token (REELT), the project’s utility token.Bitget alleged market manipulationUpon the listing of REELT tokens, Luthra reportedly sold 1.3 million tokens on Bitget. In response, Bitget claims it faced a manipulative attack orchestrated by a group of traders attempting to profit from market manipulation immediately after the token’s listing. This allegedly caused a significant drop in the token’s price, prompting Bitget’s decision to freeze Luthra’s account.Bitget states that it contacted Luthra seeking an explanation for the suspicious trading behavior. Luthra acknowledged the token sale but failed to provide satisfactory reasons for his actions, according to Bitget’s version of events. The exchange maintains that user protection is its foremost priority and that it takes swift action against illegal or fraudulent behaviors.$16 million damages claimLuthra refutes the allegations, asserting his innocence and citing alleged approval from Reel Star’s Co-Founder Navdeep Sharma for his token sale plans. He seeks a substantial $16 million in damages, in addition to the frozen funds. Luthra claims that Bitget unjustly deprived him of his tokens, asserting his status as a fully KYCed user entitled to access his holdings.In the aftermath of the incident, Bitget conducted an investigation and offered a compensation plan for affected clients. Gracy Chen, Bitget’s Managing Director, emphasized the exchange’s commitment to user protection and its actions against illicit activities on its platform. Addressing the matter on Twitter, Chen didn’t hold back in her commentary on Luthra, stating that he “has a history of fraudulent activities,” which she says were exposed by crypto journalist CoffeeZilla.The legal dispute has ignited debates within the crypto community. Supporters of Luthra contend that his case underscores broader issues faced by users of centralized exchanges, shedding light on the need for improved user rights and protection. On the other hand, some argue that Bitget acted appropriately to safeguard its users and the market integrity.CZ brought into the disputeThe legal battle has attracted attention from influential figures in the crypto industry. Against a backdrop of a very public airing of the dispute on Twitter, in a recent tweet Luthra invited Changpeng Zhao (CZ), the CEO of Binance, to respond to Luthra’s claim that Bitget spreads rumors about other exchanges. CZ was having none of it, writing: “You should talk to them, right? We are not a regulator for other exchanges.”The case highlights the intricate challenges surrounding market manipulation and token listings within the crypto space. As it unfolds, the outcome could potentially set a precedent for similar situations involving token listings, market manipulation, and user protection.