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Here's the state of play globally for crypto regulation and enforcement in 2023 — and a look at what to expect in 2024. "However, much of their work has involved providing guidance to the industry through enforcement actions," continued Levin. Crypto market participants nevertheless hope that the spate of legal challenges brought to crypto companies in 2023 will bring clarity in the form of new regulations. The U.S.'s dominant role in global finance and its focus on consumer protection plays a crucial role in its leading position in crypto regulation enforcement. The region has been increasingly warming to crypto assets, despite a broader anti-crypto push from China, which banned bitcoin trading and mining in 2021.

Persons: Al Drago, Binance, Sam Bankman, Renato Mariotti, Mariotti, Richard Levin, Nelson Mullins Riley, Levin, ada, Changpeng Zhao, Damian Williams, Brian Armstrong, Armstrong, Alyse Killeen, Scarborough's Levin, FinCEN, Killeen, Diem, USDC, Braden Perry, it's, Kennyhertz Perry, Perry, Bafin Organizations: U.S . Securities, Exchange Commission, Bloomberg, Getty, Regulators, Securities and Exchange Commission, U.S, Alameda Research, U.S . Justice Department's Securities, Commodities, CNBC, Capitol, SEC, Futures Trading Commission, Department of Justice, Scarborough, CFTC, Protocol Labs, Southern, of, Stillmark, Meta, Visa, Mastercard, U.S ., European, IRS, European Union, EU, France's Financial Markets Authority, AMF, Treasury, Monetary Authority of, Three Arrows, Terra Labs, Terra, Hong Kong Securities, Futures Commission, SFC, OSL Locations: Washington, Europe, Asia, U.S, Alameda, of New York, European, Crypto, Ireland, Germany, France, Italy, Netherlands, Singapore, Dubai, Hong Kong, Monetary Authority of Singapore, China, East, Africa

☆ New York sues crypto firms for alleged $1 billion fraud, cites SBF hedge fund bet
▼ + stars: | 2023-10-19 | by ( Rohan Goswami | In Rohangoswamicnbc | ) www.cnbc.com time to read: +2 min

Crypto firms Digital Currency Group and Gemini defrauded more than 230,000 investors out of a collective $1.1 billion, New York state prosecutors said in a lawsuit filed in Manhattan Thursday. They cited a series of missteps, including failure to adequately manage the risk associated with exposure to Sam Bankman-Fried's bankrupt and allegedly fraudulent crypto trading firm. For a time, it was very lucrative, until crypto hedge fund Three Arrows Capital defaulted on its loans and sent much of the crypto world into tumult. Gemini would then give Genesis that customer crypto for further lending, collecting a slice of Genesis' interest. By extension, prosecutors say, that meant that Gemini also had exposure to Alameda — and allegedly knew they did.

Persons: Crypto, Sam Bankman, Genesis, Barry Silbert's, DCG, 3AC, Cameron, Tyler Winklevoss, Gemini Organizations: Digital Currency Group, Gemini, Genesis Global Capital, Arrows Capital, New, Genesis's, Alameda Research, Alameda — Locations: New York, Manhattan, Alameda

☆ Singapore police confirm arrest of "36-year-old man", responding to query on reported arrest of 3AC's founder
▼ + stars: | 2023-10-05 | by ( ) www.reuters.com time to read: 1 min

SINGAPORE, Oct 5 (Reuters) - Singapore police confirmed on Thursday the Sept . 29 arrest of a "36-year-old man" at the Changi Airport, responding to a query on the arrest of Su Zhu, one of the founders of bankrupt crypto hedge fund Three Arrows Capital. Police did not identify the arrested man or elaborate in the response to ReutersReporting by Chen Lin; Editing by Martin PettyOur Standards: The Thomson Reuters Trust Principles.

Persons: Su Zhu, Chen Lin, Martin Petty Organizations: Singapore, Changi, Arrows Capital . Police, Reuters, Thomson Locations: SINGAPORE

☆ Singapore Police Confirm Arrest of '36-Year-Old Man', Responding to Query on Reported Arrest of 3AC's Founder
▼ + stars: | 2023-10-04 | by ( Oct. | At P.M. | ) www.usnews.com time to read: 1 min

SINGAPORE (Reuters) - Singapore police confirmed on Thursday the Sept . 29 arrest of a "36-year-old man" at the Changi Airport, responding to a query on the arrest of Su Zhu, one of the founders of bankrupt crypto hedge fund Three Arrows Capital.

Persons: Su Zhu Organizations: Singapore, Changi, Arrows Capital Locations: SINGAPORE

☆ Fugitive founder of crypto hedge fund that lost $10 billion arrested in Singapore while attempting to flee
▼ + stars: | 2023-09-29 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +2 min

Authorities have arrested crypto fugitive Su Zhu, co-founder of bankrupt digital asset hedge fund Three Arrows Capital, who was apparently attempting to flee Singapore. Zhu and co-founder Kyle Davies have both been sentenced to four months in prison, according to Teneo, the financial advisory firm handling 3AC's liquidation. The Singapore Courts ruled against Zhu for deliberately failing to comply with court orders compelling him to cooperate with Teneo's investigation into creditors' claims and the implosion of the multibillion-dollar fund. At its peak in 2022, 3AC managed about $10 billion in assets, making it one of the most prominent crypto hedge funds in the world. The firm added that it may seek further court orders against him.

Persons: Su Zhu, Zhu, Kyle Davies, Davies, 3AC, Teneo, maximising Organizations: Arrows Capital, Airport, Police, Monetary Authority of Locations: Singapore, Monetary Authority of Singapore

☆ Singapore c.bank bars 3AC founders from market activity
▼ + stars: | 2023-09-14 | by ( Chen Lin | ) www.reuters.com time to read: +1 min

A view of the Monetary Authority of Singapore's headquarters in Singapore June 28, 2017. REUTERS/Darren Whiteside/File Photo Acquire Licensing RightsSINGAPORE, Sept 14 (Reuters) - Singapore's central bank said on Thursday it has barred the founders of bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) from market activity in the city-state for nine years. The Monetary Authority of Singapore (MAS) said in a statement it had issued orders, which, effective from Sept 13, prohibit 3AC founder Zhu Su and Kyle Livingston Davies from performing any regulated activity and from managing any capital market services firms in Singapore. "Senior management of fund managers are required to implement robust risk management measures to protect the interest of investors," Loo Siew Yee, MAS Assistant Managing Director said. Representatives for Zhu and Davies could not immediately be reached for comment.

Persons: Darren Whiteside, cryptocurrencies Luna, TerraUSD, Zhu Su, Kyle Livingston Davies, Loo Siew Yee, Zhu, Davies, Kanupriya Kapoor Organizations: Monetary Authority, REUTERS, Rights, Arrows, British Virgin Islands, Monetary Authority of Singapore, MAS, Thomson Locations: Singapore, Rights SINGAPORE, British Virgin

The liquidators discussed the allegations against Three Arrows co-founders Su Zhu and Kyle Davies at a Tuesday meeting with the hedge fund's creditors, the person said. Representatives for Zhu and Davies could not be reached for comment immediately. Three Arrows was the first major crypto firm to go bankrupt in 2022, brought down by the collapse of cryptocurrencies Luna and TerraUSD in May. The liquidators were appointed by that court to wind down the company and pay its debt. Earlier this month, a set of non-fungible tokens previously bought by Three Arrows was sold for $10.9 million at Sotheby's in New York.

Persons: Su Zhu, Kyle Davies, Zhu, Davies, cryptocurrencies Luna, TerraUSD, Jaiveer Singh, Dietrich Knauth, Sriraj Organizations: Arrows, Reuters, Three Arrows, Virgin, Bloomberg News, British Virgin Islands, Thomson Locations: British Virgin, Manhattan, New York, Bengaluru

☆ Their Crypto Company Collapsed. They Went to Bali.
▼ + stars: | 2023-06-09 | by ( David Yaffe-Bellany | ) www.nytimes.com time to read: +1 min

Mr. Zhu said he was tuning out the criticism. “At least these people like me.”This month, Open Exchange unveiled its own cryptocurrency, called OX, like the animal. “Nothing compares to the energy of a startup.”Privately, Mr. Davies has been encouraging Three Arrows’ creditors to trade their bankruptcy claims on Open Exchange. By the end of the meal, Mr. Davies was rattling off business ideas. For a while, he and Mr. Zhu considered making a film about Do Kwon and the collapse of Luna.

Persons: Zhu, John F, Kennedy, “, ”, “ I’m, ” Mr, Davies, Privately, Els Pescadors, Kwon Organizations: Twitter, “, Exchange, Arrows, Open, Sundance Locations: Singapore, Barcelona, Dubai

☆ Bankrupt crypto lender Voyager Digital predicts 35% customer payout
▼ + stars: | 2023-05-17 | by ( Dietrich Knauth | ) www.reuters.com time to read: +2 min

NEW YORK, May 17 (Reuters) - Crypto lender Voyager Digital said Wednesday that customers will recover about 35% of their cryptocurrency deposits as the company winds down its operations after a failed buyout attempt by crypto exchange Binance.US. It initially sought to sell its assets for $1.42 billion to FTX, a deal that failed when FTX imploded in November. If Voyager fully prevails in the FTX litigation, customers' expected recovery would be 63.74%, according to Voyager's court filings. Voyager intends to repay customers with the same type of cryptocurrency that they had in their accounts. Voyager was one of several crypto lenders to file for bankruptcy in 2022 after a boom in the COVID-19 pandemic.

☆ Factbox: Crypto's string of bankruptcies
▼ + stars: | 2023-01-20 | by ( ) www.reuters.com time to read: +4 min

GENESIS GLOBAL CAPITALOne of the largest crypto lenders, Genesis froze customer redemptions in November after major exchange FTX stunned the financial world with its bankruptcy. Genesis Global Holdco, the parent group of Genesis Global Capital, also filed for bankruptcy protection, along with another lending unit, Genesis Asia Pacific. FTXThe Bahamas-based exchange shocked the crypto world by going bankrupt in November after suffering withdrawals of about $6 billion in just 72 hours and rival crypto exchange Binance ditched a possible rescue. CELSIUS NETWORKA crypto lender brought down by the collapse of terraUSD and luna, Celsius began its U.S. bankruptcy case on July 14. The U.S. affiliate of major crypto exchange Binance said in December it intends to buy Voyager's crypto lending platform in a deal valued at about $1 billion.

Silbert is the founder of Digital Currency Group (DCG), a crypto conglomerate that includes the Grayscale Bitcoin Trust and trading platform Genesis. Winklevoss, along with his brother Tyler, co-founded Gemini, a popular crypto exchange that, unlike many of its peers, is subject to New York banking regulation. Winklevoss and Silbert were linked through an offering called Earn, a nearly two-year-old product from Gemini that promoted returns of up to 8% on customer deposits. With Earn, Gemini loaned client money to Genesis for placement across various crypto trading desks and borrowers. Silbert has avoided responding directly to Winklevoss' latest accusation, though the company has taken up his defense.

☆ New York AG accuses Celsius ex-CEO of defrauding crypto investors
▼ + stars: | 2023-01-05 | by ( Rohan Goswami | ) www.cnbc.com time to read: +3 min

New York Attorney General Letitia James sued former Celsius Network CEO Alex Mashinsky on Thursday, alleging that Mashinsky defrauded hundreds of thousands of investors at his now-bankrupt crypto exchange. At one point, deposits at the crypto exchange were valued at $20 billion, according to the complaint. But Mashinsky's statements were false, James alleges, and became part of the former Celsius CEO's efforts to hide deep losses on risky crypto-lending investments. Celsius investors were left bereft and so despondent that some considered suicide, CNBC previously reported. Celsius entered bankruptcy proceedings with only $1.75 billion in crypto assets, a far cry from the $4.7 billion it owed users.

☆ From TerraUSD's meltdown to the collapse of a $32 billion crypto empire, here is a full timeline of the crypto market's year in 2022
▼ + stars: | 2022-12-31 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +7 min

Insider spoke with several crypto experts and charted the most influential events for the industry in 2022. The firm filed for insolvency in June, leading to widespread contagion. A month later, the firm filed for bankruptcy, listing $4.31 billion in assets and $5.5 billion in liabilities. The world's largest asset manager agreed to offer clients access to Coinbase's crypto trading and custody services. Radix's Epstein warned the industry must brace for more FTX contagion, but predicted crypto markets will rebound eventually.

☆ Binance to acquire bankrupt crypto exchange Voyager's assets for $1 billion, weeks after planned FTX deal failed
▼ + stars: | 2022-12-19 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

Binance will acquire the crypto assets and customer deposits of Voyager Digital in a $1.02 billion deal, weeks after a planned FTX-Voyager acquisition failed as a result of FTX 's collapse and Sam Bankman-Fried's arrest. At the time of filing, the crypto exchange had approximately $1.3 billion in assets but was owed over $650 million by 3AC, compared to $5.8 billion worth of assets at the end of 2021. More than 1.7 million Voyager users were waiting to discover what would happen to their crypto. When FTX's deal was announced, users were to receive an account credit alongside custody of certain cryptocurrencies that FTX supported. But weeks later, after the exposure of a multi-billion dollar balance sheet hole forced FTX into bankruptcy, Voyager, like many other FTX acquisition targets, was forced into the lurch.

☆ Three Arrows Capital says its founders still not cooperating with asset recovery
▼ + stars: | 2022-12-02 | by ( Dietrich Knauth | ) www.reuters.com time to read: +2 min

Dec 2 (Reuters) - Liquidators for bankrupt crypto hedge fund Three Arrows Capital (3AC) said on Friday that the company's founders are refusing to cooperate with asset recovery efforts, hindering the company's ability to return funds to creditors. Founders Kyle Davies and Su Zhu are more interested in rehabilitating their reputation than helping their own company's creditors, attorney Adam Goldberg said in bankruptcy court in New York. Davies has done interviews recently commenting on the implosion of crypto exchange FTX, attempting to shift blame for Three Arrows' own collapse, Goldberg said. Despite incomplete access to records and accounts, Three Arrows' liquidators have recovered some assets belonging to creditors, including $35 million in U.S. dollars and several different cryptocurrency tokens, liquidator Russell Crumpler said in court. They filed a parallel bankruptcy case in Manhattan to shield Three Arrows' U.S. assets.

☆ Factbox: Crypto companies crash into bankruptcy
▼ + stars: | 2022-12-01 | by ( Dietrich Knauth | ) www.reuters.com time to read: +5 min

The price of bitcoin has dropped 65% since the start of the year, the cryptocurrency Luna suffered a total collapse in value, and crypto exchange FTX went from buying Super Bowl ads to crash landing into bankruptcy. Here are the major crypto companies that have gone bankrupt in 2022. BLOCKFICrypto lender BlockFi was the first crypto company to follow FTX into bankruptcy, filing for Chapter 11 about two weeks after FTX's collapse. The proposed sale fell through following FTX's implosion, and Voyager reopened discussions with other potential buyers, including the crypto exchange Binance. Celsius' bankruptcy judge has appointed an examiner to investigate whether Celsius operated as a Ponzi scheme and to broadly review the company's finances.

☆ From $32 billion to criminal investigations: How Sam Bankman-Fried's empire vanished overnight
▼ + stars: | 2022-11-15 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +17 min

Alameda's success spurred the launch of crypto exchange FTX in the spring of 2019. A Twitter fight with the CEO of rival exchange Binance pulled the mask off the scheme. Alameda, FTX and a host of subsidiaries Bankman-Fried founded have filed for bankruptcy protection in Delaware. On Nov. 2, CoinDesk reported a leaked balance sheet showing that a significant amount of Alameda's assets were held in FTX's illiquid FTT token. On Nov. 6, according to Bankman-Fried, the exchange had roughly $5 billion of withdrawals, "the largest by a huge margin."

Jordan Vonderhaar | Bloomberg | Getty Imageswatch nowSaylor was speaking on CNBC's "Squawk on the Street" as FTX's demise roiled the crypto market. Bitcoin tumbled 19% in December, as investors rotated into assets deemed safer in a tumultuous economy. David Marcus, former head of crypto at Facebook parent Meta , used a phrase that would soon enter the lexicon. "It's during crypto winters that the best entrepreneurs build the better companies," Marcus wrote in a Jan. 24 tweet. Ryan Gilbert, founder of fintech venture firm Launchpad Capital, said the crypto world is facing a crisis of confidence after the FTX implosion.

☆ Tether stablecoin loses its dollar peg as contagion from FTX's collapse spreads through the crypto market
▼ + stars: | 2022-11-10 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

Tether briefly lost its dollar peg on Thursday after the implosion of FTX shook the confidence of the entire crypto market. Tether is the third largest cryptocurrency with a current market value of about $70 billion. The development is unsettling because it adds to concerns of contagion spreading throughout the crypto market as trust declines considerably. Tether, which is the third largest cryptocurrency and the world's largest stablecoin, fell to a low of $0.98 in Thursday morning trades before it recovered most of those losses. Responding to the downfall of FTX, Tether co-founder William Quigley told CNBC on Wednesday that crypto exchanges and currencies shouldn't lever up highly volatile assets with debt.

☆ FTX's liquidity crisis shows that debt is toxic for crypto and investors should not lever up highly volatile assets, Tether co-founder says
▼ + stars: | 2022-11-09 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

FTX's liquidity crisis shows how debt is toxic to crypto, according to Tether co-founder William Quigley. "It just violates a basic principle of finance; you don't lever up highly volatile assets," Quigley said to CNBC. Debt is toxic with crypto," Quigley said in an interview with CNBC on Wednesday, commenting on the recent fall of Sam Bankman-Fried's crypto exchange. "And it just violates a basic principle of finance; you don't lever up highly volatile assets," Quigley said. Bankman-Fried gained exposure to some of that debt by offering multi-million credit lines and credit injections to various crypto firms, like the now-defunct Voyager.

☆ Hedge fund Three Arrows being probed by U.S. regulators - Bloomberg News
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: +1 min

Oct 17 (Reuters) - Crypto hedge fund Three Arrows Capital (3AC), which filed for bankruptcy in July, is being probed by the Commodity Futures Trading Commission and the Securities and Exchange Commission on whether it misled investors, Bloomberg News reported on Monday. Register now for FREE unlimited access to Reuters.com Register3AC, CFTC and SEC did not immediately respond to Reuters' requests for comment. 3AC was one of the more prominent crypto firms before its fall following a broad downturn in the digital currency market and the collapse of Terra blockchain. As the token's collapse spread across the broader crypto market over the following weeks, 3AC was unable to meet margin calls from its lenders and eventually declared insolvency. Register now for FREE unlimited access to Reuters.com RegisterReporting by Yuvraj Malik in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ Bankrupt crypto lender Voyager to sell assets to Sam Bankman-Fried's FTX for $1.4 billion
▼ + stars: | 2022-09-27 | by ( Ryan Browne | ) www.cnbc.com time to read: +2 min

Sam Bankman-Fried, founder and chief executive officer of FTX Cryptocurrency Derivatives Exchange, speaks during an interview on an episode of Bloomberg Wealth with David Rubenstein in New York, US, on Wednesday, Aug 17, 2022. Customers of beleaguered cryptocurrency lender Voyager Digital may find some solace in the news that FTX, the bitcoin exchange founded by billionaire Sam Bankman-Fried, is set to take on the company's assets after winning a bankruptcy auction. After several rounds of bidding, FTX's U.S. subsidiary was selected as the highest bidder for Voyager's assets, the companies said in a statement late Monday. The bid was valued at roughly $1.4 billion, a figure that includes $1.3 billion for the fair market value of Voyager's digital assets, plus a $111 million "additional consideration" in anticipated incremental value. The sale of Voyager's assets to FTX U.S. is dependent on a vote by creditors, as well as "other customary closing conditions," according to the statement.

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