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Binance Acquires Tokocrypto, Plans to Cut Staff by 58%

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The Indonesian division of Binance Holdings Ltd. is laying off staff and replacing its chief executive after the parent company assumed nearly complete control.

PT Crypto Indonesia Berkat, also known as Tokocrypto, is now almost entirely owned by the largest cryptocurrency exchange, up from a shareholding of more than 51% two years ago when the investment was first made, the local unit announced in an email on Tuesday. Changpeng Zhao, the CEO of Binance, tweeted on Monday to confirm the action.

Binance will cut Tokocrypto staff by 58%

In order to adhere to a domestic policy to appoint local leaders, Yudhono Rawis will be assigned as interim CEO at Tokocrypto, replacing Pang Xue Kai, according to company spokesperson Rieka Handayani.

“This decision was made after careful consideration and we decided that the best step for Tokocrypto going forward is to leverage Binance’s capabilities to build a further physical trading platform for crypto assets.”

CNBC quotes Pang Xue Kai 

According to the statement, the Indonesian division will stop diversifying into non-exchange businesses and cut costs by 58% by reducing its workforce.

TKO’s value increased by 50% after news broke on December 6 that Binance and Tokocrypto were in negotiations. At the time, it was also mentioned that there would be a round of layoffs if the buyout went through. Tokocrypto laid off 45 employees in September, or 20% of its entire workforce. At that time, it also severed ties with TokoMall, a market for non-fungible tokens, and T-Hub, a gathering place.

Binance made its first investment in the Indonesian company in 2020. According to reports, Tokocrypto considered conducting an IPO in 2021, but the offering was never completed.

Tokocrypto was the first cryptocurrency exchange in Indonesia to receive approval from the nation’s Commodity Futures Trading Regulatory Agency after being founded in 2018. (Bappebti). Since then, that organization’s approval is needed for cryptocurrency exchanges. 17 businesses had received Bappebti approval as of March this year.

Both the authorized Malaysian exchange MX Global and the authorized Japanese cryptocurrency exchange Sakura were acquired by Binance in March and November, respectively. By acquiring companies that already have licenses, Binance can operate without having to apply for one.

Visa is Bringing Auto-payments With Cryptocurrency Wallets

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According to payments giant Visa, cryptocurrency users may someday be able to automatically pay their phone and electricity bills using their self-custodial crypto wallets.

Visa’s thought leadership team on cryptocurrencies put forth a solution in a blog post on December 20 that would let providers automatically “pull” money from users’ Ethereum-powered crypto wallets without requiring the user to manually approve each transaction.

In the traditional banking world, auto payments for recurring bills are commonplace. Users can authorize specific service providers to withdraw money from their preferred bank accounts to pay bills, like a Netflix subscription or a recurring phone bill.

Visa’s new feature can’t be used for self-custody wallets

According to Visa, such a mechanism is not feasible for owners of self-custodial wallets because automated programmable payments that periodically withdraw money from a user’s account “require engineering work.”

This is due to the fact that, in self-custodial wallets, only the user has access to the private keys, necessitating their manual approval of transactions because “a smart contract cannot initiate transactions on its own.”

In its technical article, Visa stated that a new kind of self-custodial wallet called “delegable accounts,” which is based on the “Account Abstraction” (AA) concept, would allow automatic recurring payments in cryptocurrency.

In 2015, Ethereum co-founder Vitalik Butering proposed an idea, which essentially makes it possible to combine smart contracts and wallets based on Ethereum into a single account and other use cases.

The Visa team claims that user accounts would “function like smart contracts” through an AA-based self-custody wallet or delegable account, meaning that people could schedule transactions without signing off to initiate each one individually.

The proposal is a part of a larger investigation by the blockchain-friendly company into fresh opportunities for blockchain innovation and a way to get around strict constraints hardcoded into Ethereum transactions.

The development team does acknowledge that, despite the ease with which auto-payments can be integrated into wallets hosted by third parties, such as exchanges, users must still have faith that these parties will properly manage their funds.

This was shown to be a significant risk this year, particularly in light of the failures of FTX, Voyager, BlockFi, and Celsius, to name a few.

BitMEX Sued by its Former CEO for Breach of Contract

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According to a court document, Alexander Hoeptner, the former CEO of BitMEX, is suing the cryptocurrency derivatives marketplace for $3.4 million for breach of contract and wrongful termination.

In January 2021, Hoeptner started working for the Seychelles-registered exchange as top executives at HDR Global Trading Limited, BitMEX’s owner and operator, were being sued for allegedly facilitating illegal trading.

Hoeptner left BitMEX in October 2022

Hoeptner’s departure from the company was previously mentioned but without further information. Hoeptner now asserts that he received a letter of termination citing, among other things, the misappropriation of funds and failure to perform duties.

“Such termination is wholly wrongful and without basis,” the court filing said.

Hoeptner claims that BitMEX owes him a total of $3.4 million, which includes $2.4 million for his second-year bonus and smaller sums for the rest of his wages, relocation costs, and housing, as evidenced by the court document.

“At the direction of the founders and the board, I put my personal and family lives on hold in order to be on the ground managing operations in Singapore and Hong Kong.” “I’m disappointed that it has gotten to the point that legal proceedings are necessary, but I’ve been left with no choice.”

Hoeptner told CoinDesk

According to documents, Hoeptner moved around a lot while serving as CEO of BitMEX, dividing his time between Singapore, Germany, and Hong Kong.

However, sometime between July and August 2022, the company informed him that there was a chance he might not get his second-year bonus or any compensation for his relocation, citing “extensive cost-cutting and restructuring program which involved numerous layoffs.”

According to the filing, his relocation costs stood at $230,000 at the time. He received a letter of termination a few weeks later.

The cryptocurrency exchange recently reduced its workforce by 30% in an effort to return to its original focus on trading derivatives.

Arthur Hayes, the former CEO of BitMEX, pleaded guilty to charges of purposely failing to establish an anti-money laundering (AML) program at the exchange and was given a two-year probationary period earlier this year.

Anon Ethereum Whale Moves 22,982 ETH

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Investors in cryptocurrencies frequently stick with Bitcoin and Ethereum to avoid temporary losses during bear markets. As a result, the community is intrigued by the large movement of such assets and tries to understand the motivation behind it.

Investors are perplexed after two addresses that had been inactive for more than four years were recently reactivated to send 22,982 ETH to new addresses. The ETH tokens in question were discovered transferring 13,103.99 ETH and 9,878 ETH, respectively, from the trading platforms Genesis and Poloniex.

PeckShield dates the Ethereum movement to October 2018

Peckshield, a blockchain researcher, discovered that the last transaction involving the ETH tokens in question occurred in October 2018, when the price of ETH was roughly between $190 and $230. The asset’s price per ETH was close to $1,200 on the transfer day.

The aforementioned flowchart depicts the assets’ historical movement and how they moved from trading platforms to new addresses over time. Although no specifics have been made public as of this writing, the community theorizes that there may be connections to funding collateral for a project.

Co-founders Vitalik Buterin and Charles Hoskinson created the cryptocurrency Ethereum, which first entered use in July 2015 and has established a reputation for being a reliable investment over time.

The second-largest cryptocurrency on the network, Ethereum, continues to struggle with inflation. Before its network activity collapsed once more, causing another market decline and a subsequent decline in profitability, it almost managed to return to be deflationary. 

45% is still regarded as neutral in comparison to other market assets, but it is still below average for Ethereum, which has historically been profitable for the majority of its holders. This is according to market data from IntoTheBlock, which shows that Ethereum’s profitability fell further below the 50% threshold.

According to the data, the vast majority of Ethereum owners are experiencing unrealized losses. The majority of investors who experience unrealized losses and continue to hold assets tend to sell at breakeven rather than hold cryptocurrencies or any other assets while they turn profitable, making it exponentially harder for Ethereum to succeed in the future if this trend persists.

Shiba Inu Team Surprises With a Mystery Countdown

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The official Twitter account for the Shiba Inu teased the SHIB army with “a special countdown.”

It published a link to a website with an image of a Shiba Inu dog staring out the window in pitch black and a countdown timer.

Naturally confused by the tweet, Shiba Inu fans began to wonder what the makers of the meme crypto might have in store. A SHIB-specific Twitter account tweeted, “Prepare your seatbelts.”

What is Shiba Inu’s surprise countdown all about?

Some community members rejected the hype, claiming that developers were just delaying the release of the Shibarium layer-2 solution in an effort to divert SHIB holders with new partnerships and hires. However, user @Crypto Noddy claims that Shibarium may soon begin a beta testing phase. The aforementioned announcement, however, might not be associated with SHIB.

The price of the SHIB token, which is down almost 90% from its record peak of $0.00008845 that was attained last October, is another topic of much member speculation.

In 2022, the cryptocurrency market experienced some of the worst declines ever. The empires that were seen by the outside world as being robust all fell within a matter of days, starting with the Terra empire in May and most recently the FTX empire.

The downward trend in the cryptocurrency market changed direction as soon as the CPI figures were made public. These days, the majority of currencies—including meme currencies—trade favorably.

In one of their recent tweets, global crypto exchange Binance tweeted that Shiba Inu is one of the most watched cryptocurrencies in 2022. The particular tweet has definitely grabbed the attention of the SHIB army.

Shiba Inu was among the most closely watched cryptocurrencies on the largest cryptocurrency exchange in the world based on reported trading volume, according to data provided by Binance.

Shiba Inu owners enjoyed great success in 2021 and made significant gains. As more people bought SHIB coins in order to make quick gains, interest in SHIB skyrocketed. The meme coin’s price reached its all-time high in October of last year at $0.00008845, making some of its purchasers millionaires.

CZ Says That Kevin O’Leary is a Liar, Dismisses His Allegations

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On the CNBC pre-market news program Squawk Box, Binance CEO and co-founder Changpeng Zhao (CZ) referred to Canadian investor and businessman Kevin O’Leary as “a liar.”

In his testimony at a Senate hearing on the FTX scandal on December 14, O’Leary claimed that Binance had forced FTX out of business in order to take over as the world’s monopoly. When Sam Bankman-Fried purchased FTX shares from Binance, O’Leary pointed out that some of the FTX funds were transferred to Binance.

CZ said that he was surprised by O’Leary’s response

CZ responded to O’Leary’s accusations by saying he was shocked by what O’Leary had said.

“Kevin O’Leary is making a bunch of nonsense claims. They don’t make sense, they don’t make any logic.”

Zhao claimed he was unconcerned about the funds of Kevin O’Leary or any other FTX users, even though it appears that all of O’Leary’s FTX funds have been lost. Additionally, the CEO of Binance doesn’t think O’Leary bought shares of FTX without being aware that Binance was also a shareholder.

CZ was asked in the interview if Binance was ready to give bankruptcy trustees the $2.1 billion payment it received from FTX when it sold its 2019 Series A investment.

If bankruptcy proceedings define that the payment was illegitimate or that the person should have had a decent understanding that the payment was fraudulent, any beneficiary within a two-year lookback window may be reclaimed by the trustee.

Zhao said that while Binance is “financially ok,” he would leave it to the “perfectly capable” lawyers to handle the situation.

The repayment was made using a combination of BUSD, BNB, and FTT, according to the CEO of Binance. The FTT portion of the repayment, he continued, was sizeable, but Binance had “forgotten” about it.

An entrepreneur and television personality from Canada named Kevin O’Leary recently discussed how he received $15 million to serve as the spokesperson for FTX during a CNBC interview.

He also mentioned how he lost everything as the exchange broke down. O’Leary also said that he was a victim of “groupthink.” Additionally, he mentioned his over $1 million in FTX equity, which is now worthless.

Japan is Easing Corporate Tax for Cryptocurrency Holdings

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The ruling political party in Japan agreed to relax corporate tax regulations for cryptocurrencies, showing support for a sector that is still reeling from Sam Bankman-Fried’s crypto empire’s collapse.

According to a member of the Liberal Democratic Party, the tax committee on Thursday approved a proposal to exempt businesses from paying taxes on paper gains on cryptocurrency they hold after issuing.

“This is a very big step forward.”“It will become easier for various companies to do business that involves issuing tokens.”  

said Akihisa Shiozaki, an LDP lawmaker at a briefing

Japan moves positively amidst FTX’s fall

The action shows that, despite the industry being rocked by FTX’s collapse, policymakers in Japan are still relying on crypto technologies to spur growth. Japan currently levies a corporate tax of about 30% on cryptocurrency profits, including unrealized gains.

Based on the decisions made by the party, Prime Minister Fumio Kishida’s administration will complete its annual tax policy guidelines by year’s end.

Typically, the government presents legislation to the legislature in January to update the tax laws for a new fiscal year beginning on April 1.

Japan eased crypto listing process

Japan aims to further relax cryptocurrency regulations by making it easier to list virtual coins, which might make the nation more appealing to Binance and other foreign digital-asset exchanges.

Unless the tokens are completely new to the Japanese market, the organization that regulates cryptocurrency exchanges intends to allow them to sell coins without subjecting them to its time-consuming screening procedure.

The relaxed regulations may become effective as early as December, making it simpler for startups to compete with well-established companies by facilitating the listing of tokens and lowering the entry bar. The member companies have just received the documentation outlining the changes.

In remarks he described as personal opinions, vice chairman Genki Oda suggested that the Japan Virtual and Crypto Assets Exchange Association might also do away with pre-screenings for coins that are new to the nation as well as for tokens issued via initial coin or exchange offers.

The country is treating the revival of its cryptocurrency sector more seriously, breaking with the regulatory tightening of recent years.

FTX: Here’s Who Tipped off Bahamas Regulators’ About FTX’s Doings

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Just two days before the cryptocurrency exchange was forced to close, a senior executive at FTX’s Bahamian subsidiary alerted local regulators to possible fraud.

Ryan Salame, the former co-CEO of FTX Digital Markets (FDM), informed the Securities Commission of the Bahamas (SCB) on November 9 that FTX was sending client funds to its sister trading company Alameda Research, according to Bahamian court documents filed on December 14.

Salame mentioned the funds were used by FTX to cover Alameda’s losses

Salame claimed that the transfer was “not allowed or consented to by their clients” and that the money was intended to “cover financial losses of Alameda.”

Additionally, he informed the SCB that only three individuals—former FTX CEO Sam Bankman-Fried, co-founder Zixiao “Gary” Wang, and FTX engineer Nishad Singh—had the authorization needed to transfer client assets to Alameda.

The claim prompted Christina Rolle, executive director of the SCB, to request an investigation from the commissioner of the Royal Bahamas Police Force because the information “may constitute misappropriation, theft, fraud or some other crime.”

The SCB froze the company’s assets the following day, on Nov. 10, and the Bahamian Supreme Court hired a provisional liquidator to try to protect the company’s assets.

The records show the first recorded example of an FTX or Alameda executive assisting law enforcement.

According to the filings, Salame is reportedly in Washington, D.C. He hasn’t made any public statements since the exchange’s demise. His final tweet was a “lol [sic]” response to Binance co-founder Yi on his explanation of the exchange’s decision to sell its FTX Token holdings on November 7.

Authorities believe that a second former executive from one of FTX’s affiliated companies has been cooperating with them lately.

On December 4, rumors abounded after images purportedly showing Alameda CEO Caroline Ellison in a New York coffee shop just a short distance from the U.S. Attorney’s Office surfaced online, leading some to speculate that she might have been working out a deal with law enforcement following the collapse of SBF’s exchange.

Since only Bankman-Fried has been charged thus far, there is more reason to believe that executives from both companies are cooperating with law enforcement.

SBF to be Held in Fox Hill Prison, Known for Physical Abuse and Harsh Conditions

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FTX’s Sam Bankman-Fried (SBF) might spend up to two months in the country’s Fox Hill Prison after being denied bail in a Bahamas Magistrate Court. This prison is known for its “harsh” conditions and reported cases of physical abuse against inmates.

After a hearing on December 13, according to Bahamas authorities, Bankman-Fried was sent to Fox Hill’s medical wing. It is unknown whether the former CEO will serve his sentence at the correctional facility, its medical unit, or some other location.

SBF has been taking meds prior to arrest

SBF’s legal representative claimed that he had been taking meds prior to his arrest on December 12 including Adderall and anti-depressants.

Conditions at Fox Hill were “harsh,” according to a 2021 human rights report from the U.S. State Department. Investigations revealed that there were too many inmates living in the facility and that there was also poor sanitation and poor medical care. Additionally, physical abuse by correctional officers was claimed in the report.

“Maximum-security cells for men measured approximately six feet by 10 feet and held up to six persons with no mattresses or toilet facilities.” “Inmates removed human waste by bucket. Prisoners complained of the lack of beds and bedding. Some inmates developed bedsores from lying on bare ground. Sanitation was a general problem, and cells were infested with rats, maggots, and insects.”

the report said

The only jail in the Bahamas is Fox Hill, while the Carmichael Road Detention Center was designed for transient detainees. However, according to reports, Doan Cleare, the commissioner of correctional services for the Bahamas, stated that none of the facilities had “issues with rodents” because most had been renovated in response to the State Department report.

Fox Hill is the only prison in the Bahamas, and the Carmichael Road Detention Center was designed for short-term stays. However, Doan Cleare, the Bahamas’ Commissioner of Correctional Services, reportedly stated that most of the facilities had been renovated in response to the State Department report and had no “issues with rodents.”

SBF will most likely be detained in the Bahamas till February as extradition proceedings with the US continue. The former FTX CEO is being investigated by the Justice Department, the Commodity Futures Trading Commission, and the Securities and Exchange Commission for defrauding investors and lenders.

Australia is Inching Closer Towards Establishing a Crypto Framework

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According to a statement made by Australia’s Treasury on Wednesday, the country’s government has committed to establishing a framework for the licensing and regulation of crypto service providers by 2023.

Following the FTX collapse, which made the management of its Australian entities hand over regulation to licensed insolvency professionals who individually assess the financial situation, the move is part of a plan to modernize the country’s financial system.

Australia to develop appropriate custody and licensing rules

The next steps the government takes will include creating appropriate licensing and custody arrangements to protect consumers, according to the announcement.

“Unfortunately, our regulatory architecture has not kept pace with changes in the market.” “In many areas, the previous government sat on its hands. In other areas, it made announcements but didn’t deliver.”

stated the joint release by the country’s Treasurer Jim Chalmers MP and Assistant Treasurer and Minister for Financial Services Stephen Jones

As part of its ongoing “token mapping” work, the government will evaluate which tokens or “digital assets should be regulated by financial services laws.” The country’s Treasury declared in August 2022 that it would give “token mapping” work top priority. 

This work entails identifying all Australian digital asset tokens’ characteristics, including their type, underlying code, and any other distinctive technological aspects.

A consultation paper was simultaneously released for the country’s “strategic plan for the payments system,” which is scheduled to be unveiled in the first quarter of 2023, and it will include the framework for the licensing and regulation of cryptocurrency service providers.

The consultation paper, which touches on a variety of aspects of the crypto ecosystem, which includes digital wallets, stablecoins, crypto-assets, and central bank digital currencies, is open for comments until February 6, 2023.

Additionally, this entails “investigating the economic, legal, regulatory, and technological considerations associated with an Australian CBDC, as well as the policy justification for an Australian CBDC.” By the middle of 2023, the Australian central bank should have finished its CBDC pilot.

On Tuesday, word spread that Blockchain Australia’s CEO Laura Mercurio had left the organization, which supported appropriate regulation and policy.

Mercurio reportedly resigned in early September, just a few weeks after being appointed, citing “differences of opinion” with the board, according to The Australian Financial Review.