Thai SEC Implements Measures to Protect Crypto Investors

Strategic investment sees C1 Secondaries Fund target Animoca BrandsThe C1 Secondaries Fund, an investment fund focused on the digital assets space with a presence in Silicon Valley and Dubai, is poised to make strategic investments in crypto powerhouses like Hong Kong-based Animoca Brands.Photo by Towfiqu barbhuiya on UnsplashReady to deploy capitalThat’s according to details from a pitch deck disclosed by the Australian Financial Review on Sunday. The C1 Fund is ready to deploy substantial capital, ranging from $20 million to $50 million, to acquire private holdings in crypto companies. The fund is only interested in targeting companies that boast valuations of $300 million and above from their most recent funding rounds.The crypto venture capital fund was co-founded by former Coinbase executives. Off the back of recent bullish momentum within crypto markets, the C1 Fund is reportedly eyeing significant discounts of nearly 80% on its investments.Share purchase offerThe fund has extended an offer to purchase Animoca Brand shares at approximately $1.12, representing a 75% markdown from its last capital raise where shares were sold at around $4.50.A few years ago, Animoca Brands, a firm that concentrates on blockchain gaming, non-fungible tokens (NFTs) and the metaverse, had been listed on the Australian Stock Exchange (ASX). However, in 2020, the company listing was removed due to the swapping of stock for crypto tokens. It still has involvement with Australia through equity investment from Australian firms Koda Capital and KTM Ventures.In September, Hong Kong-based venture capital firm CMCC Global led a $20 million funding round into Animoca. At the time, it was suggested that funding would go towards further development of Mocaverse, an Animoca project involving the development of Web3-native tools geared towards the gaming and entertainment sectors.Following some market uncertainty regarding the financial health of the company earlier this year, Animoca provided an update on its financial position, clarifying that it held $3.4 billion in cash and assets.Chainalysis interestThe strategic move by the C1 Fund aligns with the recent uptick in the crypto space. Bitcoin (BTC), the market leader, surpassed the $40,000 price point in the first week of December, propelling the overall crypto market capitalization to over $1.6 trillion. At the time of writing, BTC hovers just over $40,000.Similarly, the fund is weighing up an investment in American blockchain analysis firm Chainalysis, offering to acquire its shares at a substantial 63% discount from its latest capital raise.Beyond traditional crypto assets, NFTs are experiencing a surge in market interest. A recent report by DappRadar revealed that NFT trading volume approached $1 billion in November, signaling a notable shift in user behavior. The average value of NFT transactions also witnessed a substantial increase from $126 to $270 in November.The C1 Secondaries Fund was established in March, targeting $500 million worth of investment in blockchain, crypto, Web3 and fintech. As the C1 Secondaries Fund strategically positions itself amid the crypto market boom, its pursuit of discounted investments in industry giants like Animoca Brands and Chainalysis reflects the fund’s confidence in the sustained growth and potential of the digital assets sector.

Seoul police arrest 24 in $11.6M crypto investment scamForty-nine individuals involved with six investment fraud rings, which ran fraudulent cryptocurrency investment websites promising returns of 500% on the day of the investment, have been referred to South Korean prosecutors, according to a report by local news outlet Edaily. Korean police have arrested and detained 24 members of these syndicates and issued Interpol red notices for nine individuals, including two leaders based abroad.The Cyber Investigation Unit of the Seoul Metropolitan Police Agency (SMPA) announced on Tuesday (local time) that they have handed over a total of 49 individuals involved in the fraudulent scheme to the prosecution. These individuals collectively defrauded 253 victims out of KRW 15.1 billion ($11.6 million) by masquerading as investment advisors and luring the victims into chat rooms designed to offer fake investment opportunities. The police have charged them with fraud and violating the law against hiding illegal earnings, confiscating KRW 1.6 billion of the illicit funds.Photo by Bermix Studio on UnsplashOverseas leadershipTwo South Korean leaders are alleged to have orchestrated a crypto scam from the Philippines and other locations. Between September 2020 and April of last year, they recruited teams to work through Telegram, a messaging app, to execute various tasks, including withdrawing and laundering victims’ funds, managing bank accounts, running websites and enticing and defrauding victims. They imitated a legitimate investment firm to create a bogus cryptocurrency investment website and also operated chat rooms on Korean mobile messaging platforms to facilitate their scam.The fraudsters involved in this cryptocurrency scam operated by employing a database containing 1.62 million pieces of personal information illegally obtained through Telegram. Using this information, they randomly invited potential victims into chat rooms.Luring victims with promises of 500% returnsParticipants in the scheme took on multiple roles to share fabricated success stories about investments to lure individuals to their fraudulent site. They enticed victims with promises of a 500% return on the day of investment.Once lured to the site, victims were presented with manipulated images that showed fictitious investment returns, persuading them to invest money. The scammers would then entice victims to pay even more, citing taxes and extra fees. Eventually, the fraudsters would cut off the victims’ access to their accounts. The stolen funds, ranging from KRW 2 million to KRW 430 million per victim, were laundered through currency exchanges or by buying gift certificates.After 253 similar complaints were filed nationwide, police consolidated these reports and initiated an investigation in January of last year. During the investigation, they uncovered the participation of several local teams in the fraudulent operation. From March 2022 to last month, all Korean members involved were apprehended, except for nine individuals now on Interpol’s wanted list. Police are working on extraditing one of the two masterminds orchestrating the scheme from abroad after the person voluntarily surrendered. The other ringleader remains at large, flagged as a fugitive by Interpol, and authorities are pursuing their extradition.Oh Kyu-sik, who leads Cybercrime Investigation Unit 2 at the SMPA, has warned that chat rooms promising high returns on investments in virtual assets, stocks and futures should be approached with caution due to the high risk of fraud. He recommends that investors should verify the legitimacy of cryptocurrency investment sites by checking for any fraud reports listed on the Financial Intelligence Unit (FIU) website. Additionally, he suggests confirming the authenticity of investment companies through the FINE portal, which is operated by the Financial Supervisory Service (FSS).

Alchemy Pay scores second money services license in United StatesAlchemy Pay, the Singaporean crypto-fiat payment services provider, is solidifying its presence in the United States, with the acquisition of a money services license in the state of Iowa.Photo by Austin Goode on UnsplashU.S. licensing driveThis expansion, announced on Thursday, aligns with the company’s strategy to navigate the U.S. regulatory landscape and enhance compliance with local requirements. This recent acquisition follows Alchemy Pay’s earlier achievement of a money transmitter license (MTL) in Arkansas in September. The company has not only completed the application process for MTL licenses in additional U.S. states but also expects responses in the coming months.Under the regulatory framework of Iowa, entities or individuals engaged in currency exchange or money transmission must obtain a money services license. In an interview with Cointelegraph, Alchemy Pay Ecosystem Lead Robert McCracken highlighted the Singaporean company’s commitment to a well-structured regulatory environment. McCraken stated:“We believe that a well-structured regulatory environment is essential for the sustainable growth and development of any industry, and that includes the fiat-crypto payment industry.”Despite the challenges posed by the evolving regulatory landscape in the U.S., McCracken affirmed the company’s dedication to seeking licenses and upholding compliance standards as it expands operations. He described this approach as “more challenging but ultimately correct” for ensuring the long-term success of the crypto payment industry.Global market expansionIn addition to its U.S. endeavors, Alchemy Pay is actively pursuing license applications and market expansion opportunities globally, including in the United Kingdom and Hong Kong. The firm operates in 173 countries already, facilitating transactions through various payment methods, including Visa, Mastercard, regional mobile wallets and domestic transfers.In April, the company secured $10 million in funding from Singaporean venture fund and market maker DWF Labs, with a view towards expanding the business in South Korea. The following month, it enabled a rupee-denominated on-ramp, integrating with India’s UPI real-time payments system. In July, it partnered with well-known payments processor Checkout.com, integrating its Visa and Mastercard channels into its on and off-ramps.ICP collaborationThe collaborations and partnerships keep coming with Alchemy Pay and with that, on Wednesday it announced a strategic partnership with the Internet Computer (ICP) smart contract platform.That collaboration will see the listing of ICP, Internet Computer’s native token, on Alchemy Pay’s fiat on-ramp. This is the latest in a line of collaborations the crypto payments gateway has made with layer one and two blockchain network projects, including Polygon, Avalanche, Algorand and Arbitrum.These latest strategic expansions align with the company’s vision to establish a strong global presence while navigating and contributing to the ongoing evolution of crypto regulatory frameworks. Currently, comprehensive regulations for the entire crypto industry in the U.S. are under consideration by regulators, reflecting the dynamic nature of this rapidly evolving sector.