South Africa

Organizations bring Africa, Costa Rica and Ukraine to the Metaverse to raise awareness

Web3 users will soon be able to experience Africa, Costa Rica and Ukraine in the Metaverse, as organizations recreate virtual environments with a purpose.

The Metaverse is quickly becoming one of the most important places for companies and individuals looking to expand their reach. New findings from research firm MarketsandMarkets predict that the Metaverse market size will grow from $61.8 billion in 2022 to $426.9 billion by 2027. 

In addition, a recent report from Juniper Research links nonfungible token (NFT) growth to metaverse use cases. According to these findings, metaverse-related NFTs will experience an increase from 600,000 transactions in 2022 to 9.8 million by 2027.

Given this potential, a number of regions across the globe have started to establish a virtual presence. For example, the emirate of Dubai announced the launch of the Dubai Metaverse Strategy in July this year. As Cointelegraph previously reported, the Dubai Metaverse Strategy aims to attract companies and projects from abroad while also providing support in metaverse education aimed at developers, content creators and users of digital platforms.

While the concept may sound futuristic, industry experts believe that this is a logical progression. Hrish Lotlikar, co-founder and CEO of Superworld — an augmented reality content platform — told Cointelegraph that as Web3 technology becomes integrated into everyday lives, future-forward regions, governments and organizations will capitalize on communication, gamification and monetization opportunities in the Metaverse.

Organizations bring regions to the Metaverse for a purpose

This appears to be the case, as many organizations are focused on establishing geographical territories within Metaverse ecosystems. For example, Africa can be accessed virtually in Ubuntuland, a Metaverse platform that houses a land called Africarare. 

Mic Mann, co-founder and CEO of Africarare, told Cointelegraph that Africarare connects Africa to the global digital economy:

“Africa is one of the fastest growing populations in the world, and by 2050, it’s predicted that it will be one of the biggest populations. Therefore, we thought this was the perfect time to upskill Africa’s youth for this new world. Africarare aims to create the future of work for Africans and organizations who wish to connect with people across this continent.”

Mann added that Africarare has secured a 12×12 village, or 144 plots, of virtual real estate in Ubuntuland to establish its visibility. He explained that users are defined by digital avatars, which can enter Africarare’s “central hub” land to partake in custom experiences. “These range from art to education and include experiences like galleries, live performances, stand-up comedy, video content channels, film festivals, safaris and more.” 

Image from Africarare. Source: Africarare

Although Mann believes that Africarare will enable a sense of virtual tourism, he pointed out that the project is meant to create improved work and educational opportunities for the African population. “We believe that the Metaverse is the world’s greatest equalizer. Through Africarare, we can allow Africans to partake in this new space and thrive,” he said. 

In order to ensure this, Mann explained that the World Data Lab — a data enterprise based in Austria — recently acquired a 6×6 village in Ubuntuland to develop their presence and connect to other organizations within this part of the Metaverse.

According to Mann, World Data Lab plans to use this collaboration to raise awareness of key-impact topics through virtual initiatives. “This includes developing a data science “metaversity,” to better understand Africa’s growing population.” Mann further commented that companies establishing a digital presence in Ubuntuland will seek to recruit a digital workforce from the platform’s user base.

Mann noted that users in Ubuntuland will use the UBUNTU token as its currency, which is built on the Ethereum blockchain and will be made available later this year. In the meantime, Mann remarked that art galleries across Africarare have already been established and are dedicated to showcasing Africa’s prolific creativity. 

“Over 15,000 users visited the platform during an alpha launch we did in October 2021 with our Mila Gallery,” he said. Based on this success, Mann noted that the Mila gallery, which means “tradition” in Swahili, will continue to host curated collections by some of Africa’s foremost artists. He also shared that Africarar’s Inuka gallery — Swahili for “rise” — will feature works by emerging African artists. “Both galleries will stage various exhibitions on an ongoing basis with art pieces being sold as NFTs,” he said.

While Ubuntuland is focused on Africa’s metaverse, a project known as Alóki will allow users to virtually experience the Central American country of Costa Rica. Bartek Lechowski, chief operating officer of Alóki, told Cointelegraph that the platform reconnects people to nature through blockchain technology. “This play-to-own metaverse will enable users to do good for the planet and help build a sustainable future for society at large,” he said.

To accomplish this, Lechowski explained that Alóki offers its users the chance to virtually explore Costa Rica’s rainforests while participating in sustainable development. This will be accomplished through the project’s blockchain-based game in which digital actions mirror those in the real world via NFT ownership. Lechowski said:

“Alóki aims to make people pay attention to the climate change problem and be interested in contributing to something useful. For example, planting a tree in the Alóki metaverse can result in a real tree being planted in the Alóki Sanctuary of Costa Rica.”

Lechowski — who is also an owner of the Alóki Sanctuary, which is a 750-acre patch of rainforest in Costa Rica — said that thei project aims to plant more than 10,000 trees through its Metaverse initiative. 

Image from Alóki. Source: Alóki

“We currently have a 10-person team of sustainable farmers and are in the process of hiring even more. We’re working hard to create harmonious heaven — we’ve already planted a whopping 11,000 fruit trees,” he added.

In addition to ensuring sustainability, Lechowski remarked that the project aims to create communal buildings that will house coworking spaces and social spaces. “Our online users will eventually be able to come and enjoy Alóki Sanctuary as a reward for their sustainable actions,” he said.

Although Alóki has yet to launch, Lechowski explained that the project will take a simplified metaverse-like model approach that will gradually be developed overtime. “We plan to launch Alóki for our community as soon as there is a common Metaverse standard implemented to work across different platforms,” he remarked. Fortunately, work being done by the Open Metaverse Alliance is currently focused on implementing such standards.

It’s also notable to mention that a nonprofit organization known as The Heritage Hub will soon allow users to experience Ukrainian history within the Metaverse. Brittany Kaiser, co-founder of the Heritage Hub, told Cointelegraph that the organization uses digital scanning, 3D modeling, and NFT tokenization to preserve local heritage to be shared globally in a metaverse museum. She said:

“The problems it solves are three fold: Firstly to have a digital archive of all heritage and cultural sites, artifacts, art and other items of importance to a nation’s history and identity. Secondly, it allows all items to be encrypted on the blockchain for tracking and traceability in case of destruction or disappearance. Lastly, it allows us to use Web3 business models to fund the historic preservation of these sites and items.”

Kaiser explained that the first Metaverse being built is for Ukraine to ensure that anyone in the world will have a chance to experience the important cultural heritage of the country. Taras Gorbul, co-founder of the Heritage Hub, added that people will also be able to contribute to digital tourism revenue that will help the country rebuild after the war:

“Users will be able to visit sites that are still standing, but that are difficult to visit. Eventually, through an avatar, users will also be able visit sites that have been destroyed in the war but have been rebuilt digitally.”

A metaverse with purpose to drive adoption

Although it’s innovative for organizations to recreate various regions in the Metaverse, it remains questionable if users will want to engage with these platforms. For instance, market research firm Ipsos recently conducted a survey for the World Economic Forum that found half of adults across 29 countries are familiar with the Metaverse. While notable, the study also found that excitement for metaverse adoption is significantly higher in emerging countries in comparison to most high-income countries. The report noted: 

“More than two-thirds of people in China, India, Peru, Saudi Arabia and Colombia say they feel positive about engaging with extended reality, compared to fewer than a third in Japan, Great Britain, Belgium, Canada, France and Germany.”

This in mind, Mann believes that education is still needed in order to drive adoption. “Education and access is needed to up skill and empower Africans and the general population about these new technologies and how they can create equal opportunity,” he said. 

Echoing this sentiment, Lotlikar noted that regions like Dubai that are looking to enter the Metaverse also require education that extends beyond the hype of NFTs and blockchain technology. “The vast majority of people need to understand how they can benefit from this technology in the real world,” he remarked.

In addition, Lechowski pointed out that a Metaverse with purpose will be essential moving forward. “Simply redirecting daily activities into the Metaverse is not going to drive massive adoption. We believe that providing custom experiences might do just that.” For instance, even if a Metaverse is only capable of providing an imitation of reality, Lechowski believes that Alóki has the potential to democratize access to nature in the long term.

Kaiser further noted that as more culturally important parts of Ukraine are added to the Heritage Hub’s digital museum, the initiative will be able to roll out tools for more teams wanting to add items to the museum themselves. “In the future, other countries will be able to use the Heritage Hub tech stack to create digital tourism revenue and to open source access to their heritage for education and recreation.”

South African Reserve Bank encourages friendly behavior with crypto

The banking authority said avoiding risk by cutting off crypto-involved clients may pose a “threat” to financial integrity.

The Prudential Authority of the Reserve Bank of South Africa sent out guidelines to its subsidiaries in an effort to prevent illicit activities, encouraging banks not to cut all ties with cryptocurrency. 

It suggested that such an act could cause greater risk in the long run.

The official notice was signed by Prudential Authority CEO Fundi Tshazibana. In the past, certain South African banks had cut ties with crypto asset service providers (CASPs) — as they are called in the document — due to unclear regulations or a high-risk factor.

However, the notice highlights that risk assessment doesn’t mean dropping crypto entirely:

“Risk assessment does not necessarily imply that institutions should seek to avoid risk entirely (also referred to as de-risking), for example, through wholesale termination of client relationships which may include CASPs.”

It goes on to say such a move could even be a “threat” to general financial integrity, as it may limit the possibilities of treating issues such as money laundering.

In late July, the Reserve Bank released an assessment of risks within the local banking sector. According to the report, cryptocurrencies and virtual assets were included in the top 10 threats identified by the top local banks.

Related: European Central Bank addresses guidance on licensing of digital assets

Prior to the report, the South African government released a plan that entailed the classification of crypto as a financial asset for regulatory purposes. The laws pertaining to the classification are expected within the next 12 months.

Crypto exchanges in South Africa reacted positively to this announcement. Many believe this move will drive adoption in the country. The country has seen major signs of interest and innovation in the crypto community, including “in real life,” or IRL, crypto use cases.

South Africa is home to crypto projects such as Bitcoin Ekasi, a township that introduced Bitcoin as a means of bolstering the financial independence of local underserved communities and Unravel Surf Travel, a South African-based travel pro-crypto travel company. 

Bitcoin without internet: SMS service allows sending BTC with a text

“A person literally without no internet access can go from having no Bitcoin to having Bitcoin and then go to spending Bitcoin,” Kgothatso Ngako explains.

An innovation using the cellular network (GSM) could onboard millions of Bitcoin (BTC) users previously unreachable by the internet-dependent Bitcoin protocol. Built by South African developer Kgothatso Ngako, the new SMS-based service is named Machankura, a slang South African word for money.

KG, as he’s known to his friends, spoke to Cointelegraph from Pretoria, South Africa, about his fascination with Bitcoin and the hope that Bitcoin via text will bring BTC to millions of Africans.

An English speaker, when KG first learned about Bitcoin, he streamed audiobooks and podcasts religiously on the way to work. As he fell down the Bitcoin rabbit hole, his 20-minute commute became a two-hour wander to the Council for Scientific and Industrial Research (CSIR) in South Africa, where he worked as a software developer.

In a separate interview, Master Guantai, founder of Bitcoin Mtaani, told Cointelegraph, “The number of cellphones in Africa is double the number of people.” However, internet-enabled smartphone penetration remains low.

In Kenya, Guantai’s home country, he explains that topping up a phone with airtime is as common as credit card payments in the West. A report by Caribou backs up the statement: 94% of financial transactions in Africa are through USSD, the protocol used to send text messages, whereas just 6% of these transactions are made via mobile apps. ​​

In sum, while there are millions of phones in Africa, they’re mostly used for texting. KG had stumbled onto something that could be huge for Bitcoin adoption in Africa.

“This year, a lot of conversations in the space were around USSD or making Bitcoin accessible on feature phones—this could be a part-time project–let me just set it up. And that’s basically how Machankura came to be!”

KG started by building an African language translation project Exonumia. Now providing Bitcoin-related education in dozens of languages, he explained to Cointelegraph that if we make Bitcoin more accessible to Africans, then, as a consequence, they will learn about money and find a way to improve their quality of life.

Once Exonumia picked up steam, he asked, “what are the other barriers to accepting Bitcoin? Language is one–the other is internet access.” He sums up the internet in Africa as a space dominated by big applications such as Instagram and Facebook. The problems inherent to smartphone users are having enough space on phones, internet connectivity and price.

KG shares screenshots of Machankura in action.

KG coded up Manchakura to solve those problems, explaining, “The major focus is on spending and receiving Bitcoin.” KG explains how it works: Users dial a number and are then introduced to a menu where they can learn more about Bitcoin or register an account. “All you need to register an account is a 5-digit pin, and from there on, you are presented with a different menu: Send and receive Bitcoin.”

Here is Paco, the Bitcoin traveler who won’t stop teaching people about Bitcoin around the world, demonstrating Machankura to a teacher in Nigeria, at Cointelegraph’s request.

As a result, Lightning wallet-compatible apps on phones or computers can send Bitcoin over the Lightning Network to the phone’s number—it has effectively become a Lightning address. Machankura has integrated with Bitrefill, an increasingly popular prepaid gift card service for Bitcoin in Africa. Plus, as of Wednesday, South Africans will be able to top up their Lighting Wallets with credit from grocery stores in a partnership with “One for you,” a voucher provider. 

As Ngako summarizes, “A person literally without no internet access can go from having no Bitcoin to having Bitcoin and then go to spending Bitcoin.”

Related: Bitcoin is for billions: Fedimint on scaling BTC in the global south

Master Guantai also shares that it works well in six African countries already. Plus, popular exchange Paxful has already shown interest, Guantai explains, as the ease with which people can be onboarded using GSM is understated.

KG flags potential concerns with the innovation as the government banning or reacting negatively to Bitcoin. The commission fees for buying the voucher could put people off, and the fact that KG understands that in offering a centralized company to onboard people into Bitcoin, there’s a risk that they don’t spend the time getting to know the technology.

Plus, the service is custodial, a point that works against the Bitcoin ethos of “not your keys, not your coins.” So, he is looking for a way to use SIM cards as private keys.

Celsius has finally filed for bankruptcy: Law Decoded, July 18-25

A crypto lending platform still hopes to stay afloat, but experts doubt such probability.

Reducing your initial debt of $820 million to just $0.013 over a month can’t be easy. And, it’s hardly surprising that such a heroic dash has led Celsius to bankruptcy. Last week, the crypto lending platform voluntarily filed petitions for Chapter 11 reorganization after closing off the last of its decentralized finance (DeFi) debts owed to Compound, Aave and Maker. 

Although a Chapter 11 bankruptcy allows a company to stay in business and restructure its obligations, and there are successful examples such as American Airlines, Delta, General Motors, Hertz and Marvel, some experts voice skepticism regarding Celsius’ chances to stay afloat. The proceedings could mean investors and customers of Celsius may not see their funds returned for the “foreseeable future,” similar to the fallout from the Mt. Gox hack in 2014, which is still ongoing.

And, the external legal pressure surely doesn’t help the platform. With the local Department of Financial Regulation (DFR) reminding users that the firm is not licensed to offer its services in the state, Vermont has become the sixth American state that issued a warning against Celsius.

One point to Ripple in a case against SEC

The United States Securities and Exchange Commission (SEC) has suffered a blow in its case against Ripple after a U.S. judge denied its claims for attorney-client privilege regarding internal documents related to the Hinman speech. In denying the motion, U.S. Magistrate Judge Sarah Netburn called out the SEC’s hypocrisy in arguing that the speech — in which a former official Bill Hinman suggested Ether (ETH) was not security — was a personal matter for Hinman while also claiming it should be protected because he received legal advice from the SEC to confirm the commission’s policies.

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Andorra is one step closer to its Digital Assets Act 

A tiny European country nestled between France and Spain, Andorra, is swiftly moving to its crypto regulation framework — the respective Digital Assets Act was recently approved by the local government. Although cryptocurrencies are not legal tender in Andorra, and the Digital Assets Act makes no proposals surrounding means of exchange, the CEO of a local Bitcoin (BTC) business highlights that Andorra could adopt a Bitcoin standard, mining Bitcoin with renewable energy, taking on Bitcoin as a reserve asset and welcoming Bitcoin-centric companies from all around the world. 

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Cryptocurrencies are to become a “financial product” in South Africa

The South African Reserve Bank is set to introduce regulations next year that will see cryptocurrencies classed and treated as financial assets to balance investor protection and innovation. With more than six million people in the country having cryptocurrency exposure, regulation of the space has long been a talking point — it will allow the sector to be monitored for money laundering, tax evasion and terrorism financing. And, of course, to comply with global guidelines set out by the Financial Action Task Force (FATF). 

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South African exchanges welcome the new ‘crypto is financial asset’ ruling

Major South African exchanges have welcomed the central bank’s plans to regulate cryptocurrencies as financial assets.

South Africa’s Reserve Bank is set to begin regulating cryptocurrencies as financial assets in the next 18 months, with exchanges expecting the move to drive adoption in the country.

The move to classify cryptocurrencies as financial assets and not currency has been talked about for some time by the South African Reserve Bank (SARB). Deputy governor Kuben Chetty confirmed that the new regulations would take effect over the next year, speaking in an online dialogue on Monday.

The cryptocurrency space has been left to develop organically in South Africa, with no clear-cut regulations issued by the SARB until recently. The country has become a leader in cryptocurrency adoption, with more than 6 million South Africans estimated to own some cryptocurrency.

Now that the SARB has finally taken a stance toward the ecosystem, exchanges, traders and investors can begin to take stock of the ramifications. Cointelegraph reached out to prominent exchanges operating in the country to gauge the perception of the SARB’s regulatory attitude.

Related: Africa’s top golfers to shoot for Bitcoin prize on Sunshine Tour

Marius Reitz, general manager for Africa at global cryptocurrency exchange Luno, has been a proponent of clear regulatory parameters for the cryptocurrency industry. In correspondence with Cointelegraph, Reitz welcomed the regulatory move and believes it will create a safer environment for users in the country:

“It will require crypto asset service providers (CASPs) to obtain FSP licenses and will be easier for the public to identify a trusted and licensed platform. It will create a barrier to entry for those platforms with no regard for the security of customer funds and customer information.”

Reitz said that Luno was in a fortunate position to preempt regulatory changes in South Africa, given that the company operates in a variety of markets globally that already have strict regulatory guidelines like Malaysia and Singapore.

The Luno GM for Africa said complying with new regulatory parameters would not require a step-change in its processes aside from country-specific nuances. Luno already carries out Know Your Customer (KYC) checks, sanctions screenings as well as Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures.

Reitz also suggested that more exchanges could make use of proof-of-reserves verification. Although not required as a law, Luno undertook an audit of its crypto holdings to confirm custody of customers’ assets to provide an added level of trust to customers.

It’s also business as usual for VALR, another South African cryptocurrency exchange that has quickly grown into a trusted platform for local crypto traders and users. CEO Farzam Ehsani told Cointelegraph that the company is already conducting itself as a regulated entity, adopting KYC checks and a risk management and compliance program.

VALR also has AML and CTF policies in place and has worked with authorities to combat the illicit movement of funds. Ehsani was confident that developing regulations for the space would not lead to stifling controls, with the industry set to fall under the purview of the Financial Intelligence Centre:

“VALR is already registered with the Financial Intelligence Centre and we have been working with the FIC for many years so any official regulatory framework in this regard will just formalize what VALR already has in place.”

The SARB continues to explore the possible use of a central bank digital currency (CBDC) through its Project Khokha initiative. A number of prominent players from the traditional banking sector in South Africa have been actively involved in testing a proof-of-concept for the proposed CBDC settlement system.

Bitcoin not a currency? South Africa to regulate crypto as financial asset

South Africa’s Reserve Bank will regulate cryptocurrencies as financial assets, and new laws are expected over the next 12 months.

The South African Reserve Bank is set to introduce regulations next year that will see cryptocurrencies classed and treated as financial assets to balance investor protection and innovation.

Cryptocurrency use in South Africa is in a healthy space, with around 13% of the population estimated to own some form of cryptocurrency, according to research from global exchange Luno. With more than six million people in the country having cryptocurrency exposure, regulation of the space has long been a talking point.

Companies or individuals looking to provide advice or intermediary services involving cryptocurrencies are currently required to be recognized as financial services providers. This involves meeting a number of checkboxes to comply with global guidelines set out by the Financial Action Task Force.

South Africa’s National Treasury budget review published in February 2022 formally introduced the move to declare cryptocurrencies as financial products. The state also plans to enhance the monitoring and reporting of cryptocurrency transactions to comply with exchange regulations in the country.

South African Reserve Bank deputy governor Kuben Chetty has now confirmed that new legislation will be introduced in the next 12 months, speaking in an online series hosted by local investment firm PSG on Tuesday. This will see cryptocurrencies fall under the scope of the Financial Intelligence Centre Act (FICA).

This is significant, as it will allow the sector to be monitored for money laundering, tax evasion and terrorism financing, which has been a heavily debated byproduct of the decentralized nature of cryptocurrencies and blockchains.

Related: South Africa finishes technical PoC for wholesale CBDC settlement system

Chetty highlighted the road that the SARB will take over the next 12 months to introduce this new regulatory environment. Firstly, it will declare cryptocurrencies as a financial product which allows their listing as a schedule under the Financial Intelligence Centre act.

Following that, a regulatory framework will be developed for exchanges which will include certain Know Your Customer (KYC) requirements as well as the need to meet tax and exchange control laws. Exchanges will also be expected to issue a ‘health warning’ to highlight the risk of losing money.

Chetty noted that the SARB’s attitude toward the sector has changed significantly over the past decade. Some five years ago the institution thought there was no need for any regulatory oversight, but a gradual shift in perception to define cryptocurrencies as financial assets has changed that stance:

“By all definitions, it’s [cryptocurrencies] not a currency, it’s an asset. It’s something that is tradable, it’s something that is created. Some have backing, others do not. Some may have a genuine underpinning, real economic activity.”

The deputy governor insisted that the SARB did not regard cryptocurrencies as a form of currency, given the perceived inability for everyday retail use and the associated volatility. 

Chetty agreed that continued interest in the space creates a need to regulate the sector and facilitate its merge with mainstream finance “in a way that balances the excitement and hype with the investor protection required.”

The SARB also continues to explore the possible introduction of a central bank digital currency (CBDC), having recently completed a technical proof-of-concept in April 2022. The second stage of Project Khokha involved using a blockchain-based system for clearing, trading and settlement with a handful of banks that form part of the Intergovernmental Fintech Working Group (IFWG).

Former Monero maintainer Riccardo ‘Fluffypony’ Spagni to surrender for South Africa extradition

Court filings hint at authorities allowing Spagni to be in the United States for the Independence Day holiday weekend before being taken to South Africa early on Tuesday.

Riccardo Spagni, the former maintainer of the privacy coin Monero also known as Fluffypony, faces extradition to South Africa months after his arrest by U.S. authorities.

In a Thursday court filing for the Middle District of Tennessee, Magistrate Judge Alistair Newbern ordered Spagni to surrender to U.S. Marshals on July 5 for extradition to South Africa. He will reportedly face 378 charges related to allegations of fraud and forgery between 2009 and 2011 at a company called Cape Cookies.

U.S. authorities arrested Spagni in Nashville in July 2021 at the request of the South African government, holding him in custody until September. The court filings hint at allowing Spagni to be in the United States for the Independence Day holiday weekend before being taken to Africa early on Tuesday. None of the charges in South Africa are related to Spagni’s time working on Monero (XMR), for which he was the lead maintainer until December 2019.

Related: Privacy coins are surging — Will regulatory pressure stall their stellar run?

Spagni, who posts on Twitter under the handle Fluffypony, has been involved in the crypto space since 2011. Since his arrest in the United States, he tweeted regarding his desire to return to South Africa to “address this matter” related to the fraud charges:

According to data from Cointelegraph Markets, the price of XMR has fallen roughly 8% in the last 24 hours, reaching $110 at the time of publication. As with many cryptocurrencies in the current bear market, the price of the privacy coin has fallen significantly in the last 30 days — roughly 46% from more than $206 on May 31. 

Former Monero maintainer Spagni to surrender for South Africa extradition

Court filings hint at authorities allowing Spagni to be in the United States for the Independence Day holiday weekend before being taken to South Africa early on Tuesday.

Riccardo Spagni, the former maintainer of the privacy coin Monero (XMR), also known as Fluffypony, faces extradition to South Africa months after his arrest by U.S. authorities.

In a Thursday court filing for the Middle District of Tennessee, Magistrate Judge Alistair Newbern ordered Spagni to surrender to U.S. Marshals on July 5 for extradition to South Africa. He will reportedly face 378 charges related to allegations of fraud and forgery between 2009 and 2011 at a company called Cape Cookies.

U.S. authorities arrested Spagni in Nashville in July 2021 at the request of the South African government, holding him in custody until September. The court filings hint at allowing Spagni to be in the United States for the Independence Day holiday weekend before being taken to South Africa early on July 5. None of the charges in South Africa are related to Spagni’s time working on Monero, for which he was the lead maintainer until December 2019.

Related: Privacy coins are surging — Will regulatory pressure stall their stellar run?

Spagni, who posts on Twitter under the handle Fluffypony, has been involved in the crypto space since 2011. Since his arrest in the United States, he tweeted regarding his desire to return to South Africa to “address this matter” related to the fraud charges.

According to data from Cointelegraph Markets, the price of XMR has fallen roughly 8% in the last 24 hours, reaching $110 at the time of publication. As with many cryptocurrencies in the current bear market, the price of the privacy coin has fallen significantly in the last 30 days — roughly 46% from more than $206 on May 31.