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Cryptocurrency, Blockchain, and Fintech News Headlines Update on 2023-09-12

More fallout from FTX, the founder of exit-scam crypto exchange Thodex jailed for 11,196 years, and G20 leaders are looking how to info share on crypto

Founder of failed crypto exchange Thodex jailed for 11,196 years for exit scam

If you’re going to exit scam a crypto exchange, don’t do it in Turkey. The founder of failed crypto exchange Thodex, high school dropout Faruk Fatih Ozer, has just been sentenced to 11,196 years in prison for charges including leading a criminal organisation, fraud and money laundering. His two siblings received similar jail terms. Ozer founded Thodex in 2017. It went on to become one of Turkey’s largest exchanges, before he announced the exchange wouldn’t be able to continue operations but that he’d repay investors, before fleeing to Albania. Turkish media reports investor losses of up to $2 billion.

Ozer reportedly modestly said in court.”I am smart enough to lead any institution on Earth…That is evident in this company I established at the age of 22. I wouldn’t have acted so amateurishly if this were a criminal organization”. Hmm.

Crypto markets face potential FTX sell off

Crypto markets are bracing for a potential sell-off from FTX. The new management of the exchange has filed a motion with a US court for Galaxy Digital to sell assets on behalf of FTX. Up to $200 million of their crypto assets. Per week. The limit would be set at $50 million for the first week, then $100 million per week with a cap of $200 million. The United States District Court for the District of Delaware is expected to decide on the motion on Sept. 13. Around $8.9 billion of customer funds are still thought to be missing, as of March.

Bankrupt crypto lender Genesis sues parent company DCG

Bankrupt cryptocurrency lender Genesis Global Capital (GGC) has sued its parent company Digital Currency Group (DCG) and DCG’s investment arm DCG International Investments (DCIG) over the repayment of overdue loans. According to the complaint, a balance of 4,550.5 bitcoin remains to be repaid to GGC. The parties have gone through mediation but continue to negotiate. Genesis declared bankruptcy in January and owes $3.5 billion to its top 50 creditors. As with all of these big crypto bankruptcies, appointed officials and US attorneys are the main beneficiaries.

Crypto companies have grouped together to form the Tokenized Asset Coalition

Seven crypto and DeFi platforms have grouped together to form the new Tokenized Asset Coalition. According to a press release, the coalition aims to bring the “next trillion dollars of assets” on-chain by encouraging adoption of public blockchains, asset tokenisation, and institutional decentralised finance (DeFi) in the broader financial space. The seven founding members are Aave Companies, Centrifuge, Circle, Coinbase, Base, Credix, Goldfinch and, but they say membership is open to “any organization that shares our vision to create a unified financial system on the blockchain”.

UK FCA: crypto firms can apply to have until January to comply with new marketing rules

The UK’s FCA might now give crypto companies until January 8, 2024, to comply with its new crypto rules aimed at reducing aggressive or misleading marketing. The FCA had warned all crypto asset firms to be in compliance by October but has now added that companies could have “more time to implement certain changes”. The authority’s Sept. 7 notice said crypto firms operating in the U.K. can apply for the extra time to address technical issues related to its financial promotions regime. Crypto companies will have to only use “clear, fair and not misleading” ads or risk criminal charges. Some companies have already found ways to get around the misleading element of this. One expects that to continue. The new rules will prevent crypto companies from offering bonuses for referring friends or free airdrops to put them on par with products that the regulator deems to be high risk.

40% of crypto trading platforms are decentralised

40% of crypto platforms are decentralised and use DLT (distributed ledger technology), according to the World Federation of Exchanges. 60% of crypto platforms use Central Limit Order Books, i.e., a centralised system. Trading volumes are still higher on centralised platforms despite lower trading fees on decentralised platforms.

G20 leaders moving forward with international crypto information-sharing framework

G20 leaders are pushing to implement a cross-border framework for crypto assets, whereby countries would share information on crypto transactions. The new framework will start to facilitate information exchange between countries in 2027. This would include transactions on unregulated crypto exchanges and wallet providers. The UK, EU, and US fall under this. (Cointelegraph) Read More

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