Blockchainreporter has selected the most read and liked news pieces from this week for the readers in case you have missed them on the working days. This week was full of advancement in the crypto-verse including the work on crypto regulations by the UK and the lawsuit against Voyager Digital by FTX’s Alameda. Silvergate has also landed itself in hot waters due to its dealings with FTX and Alameda in the past.
Silvergate Goes through an Investigation by DOJ for Dealings with Alameda and FTX
Silvergate, a crypto bank, is reportedly undergoing an investigation initiated by the US-based Department of Justice (DOJ) for its alleged dealings with Sam Bankman-Fried’s FTX crypto exchange and its associates. A reason behind the investigation is the hosting of Bankman-Fried-related accounts’ hosting by Silvergate. The bank was severely affected by the FTX downfall and it cut off 40% of staff. On the 27th of January, it terminated its dividends while referring to the crypto market’s volatility crisis. No specific charges have yet been levelled against Silvergate.
Bithumb-Linked Executive Gets Detained by South Korean Prosecutors
South Korean media reports that Kang Jong-Hyun is now in the custody of the prosecutors for his connection with Bithumb (a well-known crypto exchange). He is a Bithumb shareholder and reportedly has been exercising control over the platform. The charges levelled against him deal with embezzlement, fraudulent illegitimate transfers, and violation of trust. Bithumb Korea asserted that he was not connected to the company, signifying that he was not Bithumb Korea’s former head. The arrest has been carried out at a time when the firm is going through a tempestuous time and National Tax Service started an inquiry against Bithumb Holdings in January.
Toyota Motor Corporation Declares a Web3 Hackathon Organized on Astar
Toyota has announced that it will support a Web3-centered hackathon conducted by HAKUHODO KEY3 (a business founded by HAKUHODO and Astar). The initiating event will occur on the 25th of this month and will conclude on the 18th of March. Those succeeding in the initial judging round will be allowed to take part in the next event on the 25th of March. The initial round is scheduled to take place on the 23rd of March. The funding of the hackathon is being done by the Aster Foundation (with up to $75k) and Web3 Foundation (with up to $25k).
The UK Establishes a Strategy for Crypto Market’s Regulation
The United Kingdom has officially formed a strategy for the regulation of the crypto industry. The country’s authorities are pursuing stopping some negligent business operations which were witnessed during 2022 leading to the collapse of FTX. As per a statement made on Tuesday, the proposals from the UK authorities would eliminate such activities and fortify the rules covering crypto-asset lending. The UK Treasury’s economic secretary “Andrew Griffith” stated that the country is committed to enhancing the innovation and technological evolution of the economy in addition to customer protection.
FTX Affiliate Alameda Research Prosecutes Voyager Digital for Nearly $446 Million
Alameda Research, a troubled cryptocurrency investment company, is filing a lawsuit against the bankrupt crypto lending firm Voyager Digital. The lawsuit is filed to get back loan repayments made by FTX in advance of its crash in November. Alameda and FTX’s lawyers sued the crypto lender for almost $445.8M on the 30th of January in a Delaware court. As per FTX, it recompensed $248.8M to Voyager back in September 2022 and $193.9M in October 2022. The crypto exchange additionally made an interest payment of approximately $3.2M in August, as per the court filing.
