Singapore

3AC co-founder Su Zhu to be released by year-end after court grilling: Report

Three Arrows Capital co-founder Su Zhu has faced his first interrogation in a Singapore court and is reportedly set to be released soon.

Su Zhu, co-founder of bankrupt cryptocurrency lender Three Arrows Capital (3AC), is reportedly set to be released this month after facing an extensive interrogation in a Singapore court.

Zhu was arrested in Singapore in September 2023 when he attempted to flee the country after a local court sentenced him to four months of imprisonment. At the time, 3AC’s joint liquidator, Teneo, said that Zhu was planning to assist on matters related to 3AC and to help recover assets from the defunct firm.

According to Bloomberg’s Dec. 13 report, Zhu faced his first interrogation in Singapore this week, responding to Teneo lawyers in a two-day court hearing. Citing people familiar with the matter, Bloomberg said lawyers sought details about how the fund failed and the whereabouts of assets. According to Bloomberg’s sources, Zhu is to be released this month based on standard provisions for good behavior.

Singapore releases National AI Strategy 2.0, plans for 15,000 AI experts

Singapore released an updated version of its National AI Strategy, including plans for boosting government competency, building a smart nation and increasing compute capacity.

The Singaporean government released its updated National AI Strategy 2.0 on Dec.

Singapore structured its AI strategy into three distinct systems consisting of 10 “enablers” that drive those systems and 15 action steps to make the system work.

The updated plan’s systematic approach focuses on three main areas of its society, including what it calls “activity drivers,” “people and communities,” and “infrastructure and environment.”

Building a smart nation

Among the action steps is Singapore’s plan to develop new AI “Centers of Excellence” across companies operating in the country to foster “sophisticated AI value creation and usage in key sectors.”

The updated AI plan also has benchmarks of equipping governmental agencies with “specialized knowledge, technical capabilities, and regulatory tools” and “sharpening” AI proficiency in all Singaporean public officers.

According to the vision, Singapore plans to use its government capacity to create resources to support AI adoption in the public sector.

Additionally, it said it plans to boost its quantity of “AI practitioners” or local experts to 15,000 through scaling up AI-specific training programs, technology and AI talent pipelines, and that it “remains open” to global talent.

The report said that various tech training programs centered around AI development have placed over 2,700 individuals in “good jobs” to date.

Binance VIP traders got sneak peak of US settlement: Report

At an exclusive dinner in Singapore, certain Binance executives reportedly told traders about the pending settlement with U.S. officials, allowing the exchange to stay in business.

Executives of cryptocurrency exchange Binance reportedly gave a heads-up to its top market makers regarding a potential $4.3-billion settlement with authorities in the United States.

According to a Dec. 1 Bloomberg report, Binance traders at an exclusive September dinner in Singapore were informed about a tentative deal the crypto exchange had with U.S. Some Binance executives reportedly told certain traders at the event that the exchange could easily afford the $4.3-billion penalty to stay in business.

Then Binance CEO Changpeng “CZ” Zhao was reportedly not in attendance at the event, but Richard Teng, who succeeded Zhao following the settlement, was mingling with guests.

According to Teng’s posts on X (formerly Twitter) from September, the then head of regional markets was in Singapore for the Token2049 conference, the Milken Institute Asia Summit, the Singapore Grand Prix for Formula 1 and “plenty of side events.” Cointelegraph will release an exclusive interview with the Binance CEO at 6:00 pm UTC on Dec.

Glad to be speaking at Ethereum_sg. Busy week in Singapore with Token 2049, Milken, plenty of side events and rounded up by Singapore F1 night race https://t.co/FBirPWgRLg

— Richard Teng (@_RichardTeng) September 12, 2023

As part of its settlement, Binance must pay $4.3 billion to various U.S. at the time of publication, as a court considered his request to return to the United Arab Emirates before sentencing in February.

Binance VIP traders got sneak peek of US settlement: Report

At an exclusive dinner in Singapore, certain Binance executives reportedly told traders about the pending settlement with U.S. officials, allowing the exchange to stay in business.

Executives of cryptocurrency exchange Binance reportedly gave a heads-up to its top market makers regarding a potential $4.3-billion settlement with authorities in the United States.

Then Binance CEO Changpeng “CZ” Zhao was reportedly not in attendance at the event, but Richard Teng, who succeeded Zhao following the settlement, was mingling with guests.

Glad to be speaking at Ethereum_sg. Busy week in Singapore with Token 2049, Milken, plenty of side events and rounded up by Singapore F1 night race https://t.co/FBirPWgRLg

— Richard Teng (@_RichardTeng) September 12, 2023

OPNX token spikes 50% after Su Zhu unexpectedly posts a 'gm' on Twitter

The OX token hit a price high not seen since co-founder Su Zhu was arrested in late September.

Open Exchange Token (OX), the native token of the crypto bankruptcy claims platform OPNX, spiked 50% just 20 minutes after co-founder Su Zhu supposedly posted to X (Twitter) for the first time since his arrest.

On Dec. 29, the same day he was arrested at Singapore’s Changi Airport attempting to leave the country.

gm

— 朱溯 (@zhusu) December 1, 2023

In the 20 minutes after Su’s X post, OX jumped nearly 50% to $0.021 and hit a 63-day high — a price not seen since the day of Su’s Sept. 29 arrest, according to CoinGecko data.

*OX token price with a spike in the minutes after Su’s X post. Source: CoinGecko*

Shortly after the price peak, OX retraced by around 6%.

Su was arrested on Sept.

The order was meant to see Su serve four months’ imprisonment — meaning he wouldn’t be released until next year, though some have speculated he may have been released after a wallet labeled “suzhu.eth” — believed to belong to Su (though unconfirmed) — became active again on Nov.

OPNX, short for Open Exchange, is a platform allowing for the trade of creditor claims from bankrupt crypto companies.

Crypto lender Babel gets extended creditor protection in Singapore

Hong Kong-based Babel Finance will have more than a year to repay debts to its creditors after suspending withdrawals in June 2022.

Troubled cryptocurrency lending firm Babel Finance has more time to repay debts to creditors like Deribit after suspending withdrawals in 2022.

A court in Singapore has extended creditor protection for Babel Finance by another three months, Bloomberg reported on April 18.

According to Babel co-founder and former CEO Flex Yang, the moratorium will last until July 21, enabling the firm to pursue its restructuring plan via a new decentralized finance (DeFi) project called Hope. Flex returned to oversee Babel’s restructuring process a few years after stepping down from CEO role in 2021.

*Flex Yang, former CEO of Babel Finance and founder of the Hope DeFi ecosystem. Source: TechCrunch*

Babel’s restructuring plan involves new tokens called “Babel Recovery Coins,” which are aimed at allowing the troubled lender to generate revenue for repaying as much as $800 million to its creditors.

Flex also wrote in an open letter on Twitter that Babel’s bankruptcy protection was heard in the Singapore High Court on April 17, officially opening the in-court reorganization procedure. He noted that his main focus in the future would be the Hope project, stating:

“In the coming international political changes, HOPE will be an important tool for us to reconnect the world. […] We are confident that our new team will continue to use their hope and light to move the new project forward.”

As previously reported, the co-founder of Flex launched the Hope DeFi project in mid-March 2023, positioning the initiative as a combination of DeFi and centralized finance to enable DeFi-level transparency and security and centralized finance-level access.

Another Babel co-founder, Yang Zhou, initially introduced the Hope project in early March, describing its native Babel Recovery Coin as a stablecoin minted as collateral based on Bitcoin (BTC) and Ether (ETH). The token is designed to maintain its 1:1 peg with the U.S. dollar through arbitrage incentives for traders.

Babel was one of many crypto lending companies that experienced major liquidity issues due to the bear crypto market in 2022. The Hong Kong-based firm suspended withdrawals and redemptions from its products in June, citing unusual liquidity pressures. Babel reportedly lost $280 million in proprietary trades with customer funds.

Magazine: Asia Express: Bitcoin glory on Chinese TikTok, 30M mainland users, Justin Sun saga

Singapore to introduce uniform screening standards for crypto bank accounts

Potential guidelines reportedly won’t have a binding force over banks, which can rely on their own risk assessment.

Singapore regulators are working with traditional banks to develop uniform standards for screening potential customers from the crypto industry. The collaboration has been ongoing for the last six months.

According to a Bloomberg report from April 6, the Monetary Authority of Singapore (MAS) has been working alongside the police forces to help local banks optimize their procedures for opening accounts of digital asset service providers. After half a year of cooperation, its results and conclusions for risk management and due diligence will be published in the next two months.

The potential guidelines will also cover the topics of stablecoins, nonfungible tokens (NFTs) and transferable gaming or streaming credits. At the same time, the banks will reserve the right to make decisions based on guidelines and their own risk assessment.

As MAS representatives told journalists, currently, there are no rules prohibiting the banks from working with digital asset providers:

“Banks make their own determination of whether to start or continue a banking relationship with a customer, balancing between commercial considerations and business risk tolerance.”

Singapore has established itself as a hub for crypto businesses owing to its flexible tax policies, access to diverse tech talent and convenient location, allowing companies to operate smoothly within the region in Asian time zones. However, in late 2022, the MAS proposed banning digital payment token service providers from offering “any credit facility” to consumers, including both fiat and cryptocurrencies. Back then, local crypto lobbyists voiced their opposition to the proposal.

Currently, the local enforcers are conducting a probe connected to failed Terraform Labs and its co-founder Do Kwon. The collapse of the Terra ecosystem caused a major implosion in the digital asset market, with losses of nearly $40 billion.

Magazine: US enforcement agencies are turning up the heat on crypto-related crime

Circle prefers reserves and payment rails with the Fed, says exec

Circle’s Asia-Pacific vice president said the company currently holds 80% of its reserves but would ultimately like to keep all cash with the Fed in light of the recent banking crisis.

Circle has been subject to discussion in the crypto industry since the depegging of its USD Coin (USDC) stablecoin amid the collapse of Silicon Valley Bank (SVB) on March 10. Now that the company has cleared its backlogs and USDC has regained its 1:1 peg with the United States dollar, it looks toward the future — for the company and the industry.

In an interview with Cointelegraph at WOW Summit Hong Kong, Raagulan Pathy, Circle’s Asia-Pacific vice president, said the company was reflecting on recent events and focused on having “more banking partnerships on a global basis.”

“We don’t have any plans to move reserves right now. We’ve got a very strong fund for where the reserves sit. We spent a lot of time building transparency around it and establishing that.”

After the SBV crash, Circle promptly announced a new banking partnership with Cross River and an expansion of its ties with BNY Mellon. Pathy said Circle currently holds 80% of its reserves and treasuries.

“We would ultimately like to keep all of our cash as well with the Fed and use the payment rails to the Fed, because that moves us away from our reliance on TradFi partners.”

Pathy continued to say that the company has no plans to move its headquarters, which is currently based in the U.S., and called the U.S. regulatory landscape “extremely fluid.”

However, he commented on the regulatory regimes of other countries like Singapore, which he praised for having a “measured approach toward regulation.” According to Pathy, the country has a “step-by-step” approach to crypto.

Pathy also highlighted Circle’s significant presence in Singapore and a recent acquisition in Taiwan.

“Generally, as a company, we’re on a globalization path. We are looking at having more people on the ground in areas where we see a favorable environment.”

Companies in the space have increasingly targeted Singapore as a crypto-friendly destination in terms of regulation and prospects for innovation. On the other hand, the U.S. has been cracking down on the crypto industry.

One commentator recently called actions from U.S. regulators a “surgical removal” of crypto. Many in the industry believe that the U.S.’s strict regulation enforcement tactics toward the crypto industry are creating a vacuum for other countries to swoop in to nurture a more “vibrant” scene.

Magazine: US enforcement agencies are turning up the heat on crypto-related crime

Singaporean women ‘outperforming’ men in crypto trades, survey reveals

The survey also found that 24% of women have allocated more than 20% of their portfolios to crypto.

Singaporean women are slightly more likely to make money or at least break even on their crypto investments than their male counterparts, according to a survey from cryptocurrency exchange Independent Reserve.

Published on March 28, the annual Independent Reserve Cryptocurrency Index (IRCI) survey was conducted in February and polled “1,500 everyday Singapore residents on their attitudes toward cryptocurrency.”

As per the survey data, 76% of women reported either making money or breaking even on their crypto investments, compared to just 72% of men.

“Since the launch of IRCI in Singapore in 2021, this is the first time that females have reported outperforming their male counterparts,” the survey results read.

*Crypto ownership, Women vs Men. Source: Independent Reserve*

The survey has also found an increase in women participating in crypto investments this year, with 37% of women surveyed saying they had crypto investments, accounting for a 7 percentage point increase compared to the previous year.

On the other hand, 48% of men said they took part in the activity, which was down 1 percentage point compared to the 2022 IRCI.

A significant number of women surveyed also outlined bullish stances towards crypto, with 24% stating that they had “allocated more than 20% of their investment portfolio to this asset class.”

“Over the next 12 months, 48% plan to further invest in their existing portfolio while 43% intend to diversify into other tokens, Defi or NFT projects,” the report adds.

*Investment performance vs time in market. Source: Independent Reserve*

The IRCI also provides a score for the overall confidence level in crypto ranging from 0 to 100. In this year’s edition, Singaporean confidence scored 55 out of 100, down from 61 the year prior.

This was mostly attributed to the rough year crypto had in 2022, as several major crypto firms went bankrupt, while the collapse of Do Kwon’s Terra/LUNA project also sent shockwaves through the sector.

“2022 was a challenging time for the cryptocurrency industry, due to several macroeconomic factors. The collapse of Terra-Luna and the FTX fallout has understandably led to a loss of confidence and trust in the industry,” said Lasanka Perera, the CEO of Independent Reserve Singapore.

However, despite confidence shaking, crypto adoption did still increase, with 43% of respondents stating they had crypto investments, compared to 40% the year prior.

Additionally, a significant number of respondents indicated that they had long term confidence in crypto, with 48% of all crypto investors stating that they plan to increase their current portfolios.

“As recent global financial events continue to unfold, many may also re-evaluate their dependence on traditional financial institutions to safeguard their money and turn to alternative assets such as Bitcoin to hedge against bank defaults and currency debasement,” Perera noted, adding that:

“It is encouraging to see that optimism towards the long-term benefits of cryptocurrency remains strong in Singapore and that investors who adopt a long-term view are reaping rewards.”

Perera also suggested that part of the Singaporean crypto investor’s long-term confidence was due to the government’s well-established regulatory frameworks for the sector.

“Singapore has one of the clearest and robust regulations for cryptocurrencies, which gives investors an added assurance of dealing with trusted players. As Singapore continues to remain open to innovation in digital assets, education remains crucial as awareness and adoption of cryptocurrencies among residents grow,” the CEO stated.

FBI, NY authorities probes collapse of TerraUSD stablecoin: Report

The controversial founder of Terraform Labs, Do Kwon, is at the center of the investigation, despite being believed to be hiding out in Serbia.

The United States Justice Department is reportedly investigating the collapse of the TerraClassicUSD (USTC) stablecoin, which contributed to a $40 billion wipeout in the Terra ecosystem last May.

Two agencies within the department — the Federal Bureau of Investigation and the U.S. Attorney’s Office for the Southern District of New York — have interrogated former staff at Terraform Labs in recent weeks, according to a March 13 The Wall Street Journal report.

The probe covers similar ground to a lawsuit filed against Terraform Labs and its founder Do Kwon by the U.S. Securities Exchange Commission on Feb. 16, according to people familiar with the matter.

Among topics that investigators have asked about was the relationship between Chai, a South Korean-based payment platform, and the Terra blockchain on which USTC operated.

The SEC alleged in its filing alleged that Kwon misled investors into believing that Chai transactions were processed on the Terra blockchain.

*Do Kwon speaking at a conference about Terra before LUNC and USTC collapsed. Source:* *Terra*

The SEC in its lawsuit also accused Kwon of misleading investors about the risks of the algorithmic-based stablecoin, which is designed to be pegged 1:1 to the U.S. dollar.

It is unclear what specific charges the Justice Department is potentially pursuing. The investigation does not necessarily mean that charges will be filed.

Since the collapse, Kwon reportedly left South Korea for Singapore, Dubai, and now Serbia, where he is now believed to be, according to South Korean officials. Two South Korean authorities were recently sent to Serbia to find Kwon but were unsuccessful in their search attempts.

Kwon, however, claims he is not “on the run” despite the South Korean prosecutors issuing Kwon an arrest warrant on Sept. 14 and a red notice filed by Interpol, the global law enforcement agency, on Sept. 26.

Kwon told podcaster Laura Shin in October that he hasn’t seen a copy of the South Korean arrest warrant, and has continued to deny fraud allegations on social media.

I am not “on the run” or anything similar – for any government agency that has shown interest to communicate, we are in full cooperation and we don’t have anything to hide

— Do Kwon (@stablekwon) September 17, 2022

Meanwhile, New York prosecutors are understood to be investigating a series of chat-group investigations from former members at Jump Trading, Jane Street and Alameda Research, Bloomberg reported on March 13. Alameda filed for bankruptcy alongside FTX in November.

The investigation is reportedly looking into whether market manipulation tactics were involved in the TerraUSD stablecoin project.

Cointelegraph reached out to Terraform Labs but did not receive an immediate response.