Asiastar Entertainment and Codus to Develop Casual P2E Game with NFT Rewards

Accused of one of the world's largest cryptocurrency scams, Andreas Szakacs, a Swedish national who became a Turkish citizen under the name Emre Avcı, was detained in Istanbul. The alleged international fraud scheme, led by Szakacs, began in 2019 under the guise of OmegaPro, a company dealing in forex and cryptocurrency trading. OmegaPro claimed to generate significant profits for its investors through complex financial algorithms and high-risk leveraged trading. The company, registered in opaque jurisdictions like Saint Vincent and the Grenadines and headquartered in Dubai, promised returns as high as 300% within 16 months, attracting investors from across the globe. High-profile endorsements and lavish eventsTo bolster credibility, Szakacs and his partners, including well-known figures in the finance and crypto sectors like Dilawar Singh and Mike Sims, organized extravagant events. These included the OmegaPro Legends Cup, a football tournament featuring former stars like Ronaldinho, Kaka and Iker Casillas, who were branded as OmegaPro ambassadors. The company also sponsored car races and held opulent conferences in luxury hotels, where gifts and prizes were distributed to participants, further enticing new investors. OmegaPro's operations spanned multiple continents, with representatives in countries such as Colombia, Mexico, the UK and Nigeria. Over time, the company claimed to have attracted 1.5 million investors. However, in late 2022, as withdrawals were suddenly halted, suspicions grew. By July 2023, the company had shut down, leaving an estimated three million investors defrauded and $4 billion unaccounted for.Photo by Xiaoyi Huang on UnsplashAs OmegaPro collapsed, investors from around the world began filing complaints. In France alone, over 1,500 victims have initiated a class-action lawsuit. Similar legal actions have been reported in countries including Mexico, Congo and Myanmar. Despite multiple investigations, the whereabouts of Szakacs and his partners remained unknown—until recently. A tip-off leads to arrest in IstanbulThe breakthrough came on June 28, when an anonymous informant tipped off Turkish authorities about Szakacs' presence in a luxury villa in Istanbul's Acarkent neighborhood. Following an investigation, the Istanbul Gendarmerie identified 18 complainants connected to OmegaPro. On July 9, Szakacs was arrested in a raid on the villa, where authorities found 32 cold wallets containing cryptocurrencies, along with extensive documentation related to OmegaPro’s operations. During questioning, Szakacs denied all allegations, claiming that OmegaPro was a legitimate business that went bankrupt in late 2022, resulting in significant losses for him and his partners. He also refused to provide access to the cold wallets and the encrypted data on his devices. Despite his defense, Szakacs was charged with fraud using information systems and detained by the Beykoz Criminal Court of Peace on July 10. Ongoing legal battles and future implicationsAs the investigation continues, authorities are scrutinizing Szakacs' digital transactions, which reportedly involve $160 million in movements over a single month. His legal team argues that investors knowingly took on risks in the forex market, but the sheer scale of the losses—especially the $103 million claimed by a Dutch complainant representing 3,000 victims—has intensified the case. The outcome of this case could set a precedent for how international crypto-related fraud is handled, particularly in an era where digital currencies and high-risk investments are increasingly intertwined. 

Xxsoft, an information technology firm based in South Korea, announced today that it entered a partnership with a blockchain firm Infinite Block, local media outlet Kyunghyang Games reported. Xxsoft is the operator of CryptoTax, a tax and accounting service specializing in crypto assets. The two companies aim to provide crypto custodial and accounting services for companies and enterprises.Photo by Sarah Elizabeth on UnsplashCryptoTax specializes in handling crypto investors’ taxation using algorithms designed to process crypto tax and accounting. These algorithms were developed with participation from tax accountants and accountants with expertise in crypto assets. CryptoTax also offers a solution as a service (SaaS) called Cryptotax Enterprise, which offers corporate clients the advantage of automated tax processing with direct access to accounting documents.  Meanwhile, Infinite Block is a key management service (KMS) provider based in Korea, serving clients ranging from startups to big firms. The company provides crypto wallets catering to individual clients’ needs, from internet-enabled hot wallets to cold wallets that keep private keys offline. Infinite Block employs multi-signature technology and multi-party computation to securely protect clients’ private keys. Rising demand for institutional crypto accountingYoon Dong-hwan, CEO of Xxsoft, said the shift in crypto regulations – as seen in events like the approval of spot Bitcoin ETFs by the U.S. Securities Exchange Commission – will result in higher demand for crypto custodial services compliant with financial authorities. He stated that the partnership with Infinite Block will allow the company to provide a convenient service tailored to the needs of corporate clients.  Jeong Gu-tae, CEO of Infinite Block, highlighted the importance of companies being equipped with a fully compliant internal control system when it comes to crypto taxation and accounting, because firms are subject to stricter regulations compared to individual investors. Jeong reaffirmed the company’s commitment to building a healthy local crypto market, saying that it will continue developing effective crypto asset management systems for corporations in close cooperation with CryptoTax.  

While Indonesia has been recognized as one of the world's swiftest embracers of cryptocurrencies, it has faced a notable setback more recently, with a 60% decline in transaction volumes on local exchanges compared to the preceding year. High taxesIn a recent report by CoinDesk Indonesia, the publication speculates that the imposition of high taxes may be a pivotal factor dissuading traders and impacting the overall market dynamics. Indonesia’s tax system treats crypto assets as commodities, with the burdensome taxes arising as a direct consequence of that classification. The tax framework in Indonesia subjects crypto assets to both income tax and value-added tax (VAT), treating them akin to commodities. Leading crypto exchanges in the country reveal that the cumulative tax load on each transaction could surpass the trading fees imposed by exchanges, potentially discouraging users from engaging in crypto transactions. Oscar Darmawan, the CEO of the leading Indonesian crypto exchange INDODAX, told CoinDesk that users bear an income tax of 0.1% and a VAT of 0.11% on every crypto transaction. Additionally, exchanges are required to remit a 0.04% fee to the recently established national crypto bourse. Darmawan clarified that “this places a significant financial burden on the domestic crypto industry." expresses Darmawan in an interview with CoinDesk Indonesia, underscoring the challenges faced by the industry due to the current tax structure.Photo by Nataliya Vaitkevich on PexelsAn international issueThe tax treatment of digital assets has been a bugbear for the crypto space on an international basis. In Japan, it arose last month that the country’s lawmakers were considering applying an exemption for companies from paying taxes on unrealized cryptocurrency gains. It has since transpired that such an amendment will be applied to its fiscal 2024 tax reform plan. India has applied a heavy tax burden where crypto is concerned, with a 30% tax applied to capital gains relative to the sale of crypto assets. Additionally, 1% taxation applies by way of a tax deducted at source (TDS) on crypto transactions. The use of cryptocurrency for the purchase of goods and services in the United States remains a stumbling block, given that the current tax code treats such a scenario as a taxable event. Last year, two U.S. senators attempted to address that issue, by including a $200 exemption for purchases made with cryptocurrency. Calls for crypto asset reclassificationIn response to this dilemma in Indonesia, some stakeholders within the local crypto industry advocate for a paradigm shift in the classification of crypto assets. They propose treating crypto as securities instead of commodities, anticipating that this alteration could alleviate the tax burden on users. Yudhono Rawis, the CEO of the exchange platform Tokocrypto, asserts: "Both stocks and crypto are tradable assets with profit potential … Thus, implementing the same tax regime for both these investment instruments would be more equitable and consistent." The industry anticipates regulatory changes in the near future, as crypto oversight in Indonesia is set to transition from the commodities regulator to the Financial Services Authority (OJK) in January 2025.