Metaplanet continues Bitcoin investment despite market fluctuations

The Securities and Futures Commission (SFC), an independent statutory body that regulates Hong Kong’s securities and futures markets, has alerted investors to 33 suspicious websites which appear to be masquerading as HashKey, one of the Chinese autonomous territory’s first licensed virtual asset exchanges.Photo by Dan Freeman on UnsplashAlert listThe regulator flagged the websites by publishing their domain names to its alert list. Hong Kong’s SFC first published its alert list relative to suspicious crypto-related entities in November 2021. In terms of both suspicious trading platforms and suspicious crypto-related web links, the regulator has found 91 instances to date. Remarks added to the listing confirm that a HashKey company, Hash Blockchain Limited, had reported the websites to the regulator as fraudulent websites. The web domain links have been slightly modified when compared to official links to the HashKey website, in an effort to mislead HashKey customers. A little less than two weeks ago, HashKey published a statement to its website, making service users aware of the fraudulent links and websites. It stated: “Fraudulent websites will appear under different domain names or with slight modifications or variations of the official HashKey Exchange website address www.hashkey.com by adding a combination of letters, numbers or symbols.” The company added that it has no connection with these websites, that no affiliation exists with HashKey Exchange, and consequently the company doesn’t accept any liability for any matters relating to these fraudulent websites and links. As well as the regulator, HashKey has also reported the matter to the Hong Kong Police Force. Tackling crypto-related fraudBoth law enforcement and regulators in Hong Kong have been more proactive in tackling any signs of crypto-related fraud or potential scams following an episode of fraud involving an unlicensed Dubai-headquartered crypto exchange, JPEX, in 2023. At that time, the authorities within the Chinese autonomous territory received in excess of 2,369 complaints from Hong Kong residents who had been duped by the unregulated exchange. Overall, victims were out of pocket to the tune of $166 million. Some commentators had likened the JPEX scandal as being an “FTX moment” for Hong Kong, referring to the high profile collapse of Bahamas-headquartered crypto exchange FTX in November 2022. However, Hong Kong investors also suffered as a result of the FTX collapse.  In fact, the Hong Kong Monetary Authority (HKMA) and the SFC were listed as FTX creditors in 2023. The statutory bodies appeared on the FTX creditor list alongside 50 Hong Kong institutions. Towards the end of 2023, the agency issued a public warning regarding HongKongDAO and BitCuped, entities that were accused of misinformation. In February 2024, the SFC issued a reminder to investors within the Chinese autonomous territory to ensure that they’re only engaging with licensed cryptocurrency platforms. To date, the regulator has awarded crypto trading licenses to seven virtual asset trading platforms (VATPs). Earlier this month, the regulator extended use of its swift licensing process to all new applicants in an effort to fast-track the approval of more licensed platforms.

DeSpread, a Korea-based consulting firm specializing in Web3 and blockchain, announced today its partnership with Arbiturm, a Layer 2 network built on the Ethereum blockchain. This news was reported by local media outlet Etoday. Through the partnership, DeSpread aims to create an ecosystem for Arbitrum developers, seek collaboration with Korean enterprises and attract more onchain users. Photo by Sigmund on UnsplashArbitrum is one of the largest Layer-2 blockchains operating on the Layer-1 Ethereum network, designed to address the scalability issue of the ETH network. DefiLlama, a DeFi total value locked (TVL) aggregator, shows that Arbitrum has the fourth largest TVL among all chain networks, and the largest TVL among ETH-based Layer 2 networks. To foster Arbitrum-based services, DeSpread plans to distribute research content and development guides to Korean developers in an effort to bring down the language and cultural barriers when working with Arbitrum. Regular events featuring Arbitrum experts are also in store, set to be held both online and in-person formats. These efforts are intended to help companies seeking to adopt blockchain technologies collaborate with Arbitrum.   Forging an ecosystem within the Korean ETH communityJeff Kim, Head of operation at DeSpread, expressed his excitement about the partnership with Arbitrum, saying that Arbitrum is the network showing the strongest performance among all Layer 2 solutions on the ETH network. He added that Despread plans to support Arbitrum so that it can create its ecosystem within the Korean Ethereum community and raise its brand awareness. Nina Rong, Head of Ecosystem Development at Arbitrum, stated that Arbitrum has long been keeping an eye on Korea’s blockchain ecosystem. The partnership will help Arbitrum strengthen its position in the Korean market and shape a developer-friendly environment for individuals and businesses, she said.

Zipmex proposes creditor repayments of 3 cents on the dollarBeleaguered Singaporean crypto exchange Zipmex has unveiled a restructuring proposal aimed at repaying creditors. According to a report published by Bloomberg on Wednesday, the initial offer stands at 3.35 cents for every dollar of the creditors’ claims.Photo by Alexander Grey on UnsplashRestructuring challengesThis restructuring proposal unfolds against the backdrop of a challenging period for Zipmex, triggered by the aftermath of last year’s crypto price downturn. The crypto exchange, which operates in Thailand, Indonesia, Australia and Singapore, is currently undergoing a court-supervised restructuring process based in Singapore.In its efforts to restructure the business, Zipmex is grappling with a debt of $97.1 million. That total debt level is contingent upon the eventual recovery of assets. Bloomberg cited sources familiar with the matter, suggesting that depending on the success of these recovery efforts, the repayment figure could potentially surge to 29.35 cents per dollar.Creditor dissatisfactionHowever, not all major creditors are on board with Zipmex’s proposed plan. Expressing reservations, they are pushing for an independent review to scrutinize recent changes in the company’s assets and liabilities, as outlined in an Oct. 4 court document. This external examination is deemed crucial to ensuring transparency and fairness throughout the restructuring process.In response to these developments, Marcus Lim, the Group Chief Executive Officer of Zipmex, refrained from providing detailed comments due to the confidentiality of the ongoing arrangement. While acknowledging inaccuracies in information sourced from external outlets, he chose not to elaborate on them further.Investor deal failureA previous attempt to sell Zipmex to V Ventures, a subsidiary of Thoresen Thai Agencies, fell through. To add to the struggling company’s woes, it emerged earlier this week that Thailand’s securities regulator, the Securities and Exchange Commission (SEC) recently instructed Zipmex to halt operations in the country due to insufficient net capital.The company had been fined 11 million baht ($315,000) by the SEC earlier this year. The SEC cited the co-mingling of corporate and customer funds as one regulatory breach. Furthermore, the Thai regulator claimed that between May and July 2022, Zipmex “did not have in place a system to effectively prevent conflicts of interest in such matters and the business operation does not have an adequate risk control system.”In response to this recent regulatory directive, Zipmex Limited issued a statement to its customers, expressing its commitment to ensuring proper and compliant business operations in line with the criteria set by the Thai SEC. Consequently, the temporary suspension of digital asset trading and deposit of all types was deemed necessary.The intricacies of Zipmex’s financial restructuring will be closely watched by market observers, especially considering the volatility in the crypto market and the regulatory challenges faced by the company in multiple jurisdictions. The success of the proposed repayment plan, contingent upon asset recovery, remains uncertain, leaving creditors and industry stakeholders on edge.As Zipmex grapples with these multifaceted challenges, its future trajectory hinges on navigating both the demands of the bankruptcy process alongside regulatory requirements.