CEO of the FTX Sam Bankman-Fried sentenced to 25 years in prison for fraud

Sam Bankman-Fried, the CEO of cryptocurrency exchange FTX, has been sentenced to 25 years in prison by U.S. federal judge Lewis Kaplan for his involvement in a fraud and conspiracy scheme that led to the collapse of FTX. The judge criticized Bankman-Fried for his lack of remorse and characterized his attempts to portray himself as an altruistic individual to the public as nothing more than an act. In addition to his prison sentence, Bankman-Fried has been fined $11 billion and will have to sell off assets such as a private jet. The defense’s argument claiming that Bankman-Fried was not likely to commit future crimes was dismissed by the judge.

Bankman-Fried’s 25-year prison sentence follows his conviction on seven criminal counts in November, a year after FTX filed for Chapter 11 bankruptcy. He plans to appeal the conviction, which, according to his lawyer, cannot proceed until after Kaplan’s sentencing decision.

During the sentencing hearing, the judge heard comments from various individuals involved in the case, including prosecutors, Bankman-Fried’s attorney, a victim, a lawyer representing other FTX victims, and Bankman-Fried himself. U.S. Attorney Damian Williams stated that the sentence sends a powerful message that financial crimes will face swift and severe consequences. The judge also noted that Bankman-Fried’s reputation has suffered greatly, but acknowledged his persistence and marketing skills while justifying the lengthy sentence.

Bankman-Fried’s attorney, Mark Mukasey, argued that his client’s decisions were guided by mathematical considerations rather than malice.

In his statement, Bankman-Fried expressed concern for the FTX customers awaiting the return of their funds, emphasizing that he was more focused on their needs rather than his own emotional life or theoretical future children. He acknowledged that his useful life was likely over, having spent the last six months in the Metropolitan Detention Centre in Brooklyn. Bankman-Fried also claimed that there were sufficient assets for FTX’s creditors to be repaid in full, despite the self-induced “liquidity crisis” the company faced. He expressed regret for his role in FTX’s collapse and took responsibility for it, extending apologies to his former friends and government witnesses.

Court order requires Amazon to publicly disclose advertising data under DSA

Last year under the Digital Services Act (DSA), the European Commission declared Amazon Store a Very Large Online Platform (VLOP), mandating it to provide public access to detailed online advertising data.

Amazon sought to annul this decision in the European Union’s General Court and requested interim measures. Consequently, the Court’s President ordered a temporary suspension of this requirement. This led the Commission to appeal to Europe’s highest court, the Court of Justice of the European Union (CJEU). Now, the Court of Justice has suspended the previous order of the General Court. Thus, the company will now be required to disclose information regarding its platform’s advertisements in a publicly accessible archive.

In the order, the Vice-President of the Court of Justice acknowledged Amazon’s claims that the EU law, demanding public access to their ad repository, potentially violates their privacy rights and business freedom, highlighting that these concerns are not irrelevant.

Nevertheless, the judge summarized that delaying DSA’s objectives due to Amazon’s appeal could adversely impact achieving the goals of regulations of a ‘Digital Single Market’. This could potentially lead to an online ecosystem that infringes on fundamental rights. Thus, the judge concluded that the EU’s legislative interests surpass Amazon’s concerns, thereby favoring the denial of the suspension request.

Cryptocurrency exchange KuCoin charged with anti-money laundering violations in the US

Federal prosecutors in the US have charged cryptocurrency exchange KuCoin and two of its founders, Chun Gan and Ke Tang, with violating anti-money laundering laws. The charges allege that the exchange operated in the US while misleading investors about its operations and failed to register with US government or maintain an anti-money laundering program.

The charges claim that cryptocurrency exchange KuCoin, with over 30 million customers, did not implement a know-your-customer (KYC) or anti-money laundering (AML) program until 2023. Even when the KYC program was introduced, it did not apply to existing customers. KuCoin’s lack of these programs allowed it to be used for money laundering, including proceeds from sanctions violations, darknet markets, and fraud schemes.

Specifically, the indictment alleges that KuCoin indirectly received over $3.2 million worth of cryptocurrency from Tornado Cash, a sanctioned crypto mixer. The charges are linked to criminal filings against two developers associated with Tornado Cash.

United States Commodity Futures Trading Commission (CFTC) has also filed a suit against KuCoin, claiming the exchange did not register as a futures commission merchant. It also failed to implement the CFTC’s equivalent of a KYC program.

SEC seeks $2 billion judgment against the cryptocurrency issuer Ripple Labs

The U.S. Securities and Exchange Commission (SEC) is reportedly seeking a $2 billion judgment against Ripple Labs in their ongoing legal battle. The SEC filed a motion for judgment and remedies last Friday, which is currently sealed. However, Ripple Labs’ chief legal officer, Stuart Alderoty, revealed on social media that redacted versions of the documents will be made public by Tuesday, 26th March.

The requested judgment, if granted, would mark the conclusion of this phase of the multi-year legal battle between Ripple Labs and the SEC. The conflict started in December 2020 when the SEC filed a lawsuit against Ripple Labs and its executives, claiming that they violated federal securities laws by selling XRP cryptocurrency to both institutional and retail customers.

In a previous ruling last July, New York Judge Analisa Torres determined that the sale of XRP on exchanges and through algorithms did not breach U.S. law, only Ripple’s institutional sales of XRP did. The SEC’s recent motion emphasizes the need for the court to consider the ease with which actors in the crypto asset space can engage in similar conduct to Ripple’s. They argue that a strong message must be sent to deter such abuses.

Ripple Labs’ chief legal officer, Stuart Alderoty, criticized the SEC and stated that the company plans to file its response to the SEC’s motion next month. The SEC filing specifies that Ripple Labs’ response must be filed no later than 22nd April 2024.

Vietnam welcomes semiconductor investments

Vietnam’s Prime Minister, Phạm Minh Chính, in a statement encouraged hi-tech and semiconductor investments in the country by offering incentives and infrastructure provisions. PM Chính emphasized the significance of sci-tech and innovation in Vietnam’s strategic partnerships with the US and Republic of Korea. He also mentioned their goal to train 50,000-100,000 engineers by 2030 to fulfil business needs of the sector.

The statement was delivered during a reception in Hanoi, where Lam Research, a US semiconductor company, and South Korea’s Seojin announced their partnership to establish a $1-2 billion semiconductor plant in Vietnam. Karthik Rammohan, Group VP of Global Operations at Lam Research, foregrounded the need for mutual growth of both the companies through R&D and technology transfer. In addition, he expressed keen admiration in Vietnam’s policies and programs aimed at bolstering the domestic semiconductor supply chain.

Vietnam appears to be a promising destination for semiconductor companies seeking to establish and diversify their production facilities in Asia. Industry leaders like Samsung, Intel, and Foxconn have already set foot in Vietnam, with numerous global firms considering future investments.

Cryptocurrency exchange OKX to cease operations in India due to compliance issues

Crypto exchange OKX has announced its decision to cease operations in India by the end of April due to local regulations and its failure to register with the Financial Intelligence Unit India (FIU IND).

The exchange has notified its clients in India to close all margin positions and withdraw funds by April 30, as failure to comply will restrict account access to withdrawals only. This move comes as India has been strengthening the regulatory framework on cryptocurrency exchanges.

Notably, OKX was not among the cryptocurrency exchanges listed in the notice issued by the FIU IND in December. Discussions between Indian authorities and some of the exchanges that received notices indicate efforts to address regulatory concerns and explore ways for exchanges to operate legally in India.

Do Kwon approved for extradition to South Korea in connection with Terra collapse

Cryptocurrency entrepreneur Do Kwon has been approved for extradition from Montenegro to South Korea by the appeals court in Montenegro. This decision comes as a result of allegations of fraud linked to the collapse of his cryptocurrency company, Terra, which resulted in the loss of around $40 billion of investors’ money and shook global crypto markets. Kwon, whose real name is Kwon Do-hyung, had been on the run for months before being arrested in Montenegro in March last year for using a fake passport.

The Montenegrin appeals court rejected the appeal made by Kwon’s lawyers and upheld the extradition order issued by the Podgorica High Court. However, no specific timeline for the extradition transfer has been mentioned. This decision follows a previous court’s ruling against extraditing Do Kwon to the United States.

Kwon’s business partner, identified by his initials J.C.H., has already been deported to South Korea in early February, highlighting Montenegro’s cooperation with South Korea in this matter. The collapse of TerraUSD, a stablecoin, and its sister token Luna in May 2022 resulted in significant financial losses for many investors. Experts have described the collapse as a glorified Ponzi scheme set up by Kwon, which caused numerous investors to lose their life savings.

The news text also mentions the increasing scrutiny faced by cryptocurrencies, including the high-profile collapse of the exchange FTX, as regulators have become more vigilant in light of various controversies in the past year. This highlights the need for stricter regulations in the cryptocurrency sector to protect investors and ensure the legitimacy of these digital assets.

Nigerian court orders Binance to provide information on cryptocurrency traders

A Nigerian court has issued an interim order requiring cryptocurrency exchange Binance to provide comprehensive information on all Nigerian traders using its platform to Nigeria’s Economic and Financial Crimes Commission (EFCC). The order comes after Nigeria initially requested information about Binance’s top 100 users in the country and their transaction history over the past six months. Justice Emeka Nwite from the Abuja Division of the Federal High Court granted the motion filed by EFCC, seeking information on any Nigerian involved in trading on Binance. The court ordered Binance to provide the EFCC with the requested data.

This move by Nigerian authorities is part of their efforts to regulate the cryptocurrency industry, which they accuse of facilitating illegal capital outflows. They claim that these outflows have contributed to the weakening of the Nigerian currency ‘naira’ against the dollar. Binance, in particular, has come under scrutiny, with Nigerian authorities demanding $10 billion in penalties for enabling around $26 billion of untraceable funds.

To further address concerns, Nigerian authorities have detained two senior executives from Binance after inviting them to the country for discussions on the matter. A court hearing for the detained executives is scheduled for Wednesday. In addition, Nigerian authorities have proposed a 400% increase in registration fees for crypto firms operating in the country.

Turkey imposes provisional restriction on Meta amid market abuse probe

Turkey’s competition authority has enacted a provisional restriction on Meta, limiting data exchange between Instagram and Threads during an ongoing market abuse investigation. The interim measure now will be maintained until a definitive ruling is made.

The regulator had initiated the probe into Meta back in December due to potential competition law breaches and significant market damage from the data merging of Instagram and Threads. The regulator stated that the company’s data sharing communication across Facebook, Instagram, and WhatsApp lacked clarity and sufficient information. Additionally, the user prompts for data sharing approval were seen as inadequate for addressing competition issues.

Previously, on a separate matter, the Turkish authority had also imposed a daily fine of $148,000 on Meta for its data sharing notification practices.

Japan and ASEAN’s unified QR payment system incoming in 2025

The Payments Japan Association plans to create a new system this year, aiming to integrate JPQR, Japan’s standardized QR code payment system, with international providers, enabling international cashless transactions. JPQR enables transactions via different providers using one unified QR code, facilitating in-store purchases simply through smartphone scans. The Japanese Ministry of Economy, Trade, and Industry has already initiated talks with Southeast Asian governments and central banks and this initiative is set to begin by 2025.

Certain Southeast Asian nations, including Thailand and Indonesia, have standardized QR code payment systems managed by their central banks and adhered to by payment service providers. Moreover, in 2022, Singapore, Indonesia, Thailand, Malaysia, and the Philippines (ASEAN countries) signed an MOU to consolidate their QR payment systems, with some countries already using the service.

Japan’s pursuit of QR code payment systems interoperability seeks to fortify regional economic security and data usage, aiming to amplify its economic sway in Southeast Asia, while counterbalancing China’s intent to broaden its domestic digital payment platforms.