Coin Informer welcomes you to the weekly crypto news update, where we bring you the latest news from the crypto world. From regulatory crackdowns in Hong Kong to lawsuits involving famous people in the crypto industry and taxation changes in Thailand, here’s the gist of what’s happening in the crypto space.
Hong Kong implements strict Crypto regulation following JPEX Fraud Case
After the JPEX fraud case, Hong Kong authorities are responding with strict law implementation. JPEX fraud involves an unlicensed crypto exchange and is now under strict supervision. Additionally, the Securities and Futures Commission (SFC) has received over 1,400 complaints about fraud, withdrawal issues, and declining wallet balances.
Warning from the Government Regarding Crypto
Chief Executive John Lee Ka-Chiu urged greater efforts to educate investors on the necessity of using platforms that have Securities and Futures Commission licenses.
JPEX pushed its services through internet celebrities and money changers, resulting in withdrawal problems and decreased wallet balances for consumers. Therefore, to prevent users from withdrawing funds, the exchange increased withdrawal costs.
Additionally, in connection with JPEX, influencer Joseph Lam (Lin Zuo) was detained.
Formerly a crypto hub, Hong Kong is now focusing on teaching the public about the use of licensed platforms for crypto trading.
Parents of famous FTX founder faces lawsuit over alleged misappropriation
FTX, the bankrupt crypto exchange, has recently filed a lawsuit against Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried. The complaint furthermore involves them being accused of exploiting their influence with FTX for personal gain.
Involvement in FTX
The plaintiffs contend that contrary to SBF’s representations, Bankman and Fried were deeply involved in FTX’s operations. Additionally, Bankman is accused of acting as a de facto officer and holding executive responsibilities.
Profits and Expenses
According to the lawsuit, Bankman and Fried benefitted from FTX Group, receiving a financial present and a luxury home. Additionally, the bankman allegedly used business funds for personal purposes.
Allegations of Fraudulent Scheme
Debtors claim that Bankman and Fried were either aware of or ignored warning indicators signaling their son’s involvement in a fraudulent scheme.
A Google employee loses $90,450 in a cryptocurrency scam.
Ethan Nguonly, a 22-year-old Google software developer, detailed his financial blunder of losing $90,450 by trading in crypto on margins using borrowed funds between November 2021 and June 2022.
Nguonly had a sizable investment portfolio, but his crypto loss included both the original investment and remaining gains.
He began by investing in Bitcoin and Ethereum but then expanded into altcoins such as Shiba Inu and Dogecoin. He later purchased more Bitcoins by margin, resulting in increased losses amid a crypto market drop.
Nguonly recommends that people only invest with the money they have and stay out of excessively volatile cryptocurrencies.
The “Stand with Crypto” campaign from Coinbase is aimed at swing states.
Coinbase’s “Stand with Crypto” campaign, which debuted in August, advocates for crypto-friendly legislation in the United States.
The campaign focuses on nine swing states, including New Hampshire, Nevada, Ohio, and Pennsylvania. Furthermore, according to a poll, 55% of people in these states are less likely to vote for anti-crypto presidential candidates.
According to the study, between 13 and 19% of respondents in these states own cryptocurrency.
Crypto Day in D.C.
Coinbase is hosting a “Stand with Crypto Day” in Washington, D.C., to advocate Bitcoin innovation and policy.
Thailand intends to tax crypto traders’ overseas earnings.
Thailand, which was previously a crypto-friendly country, is now planning to tax crypto dealers’ overseas revenue. This tax will be levied on residents who spend more than 180 days per year in Thailand.
Residents investing in overseas stock markets through foreign brokerages and cryptocurrency traders will face a big problem with the tax implementation.
Economic Stimulus Drive
Thailand’s government has furthermore launched economic stimulus measures to revitalize the economy, including a blockchain-based statewide airdrop, which may explain the new tax policy.
The tax judgment has caused alarm among expats who get pension income from abroad, albeit the specifics remain unknown.
Significant legislative developments, legal challenges, investment lessons, and taxation changes are taking place in the cryptocurrency industry. Stay tuned to Coin Informer for weekly updates on the ever-changing crypto scene. Finally, join us next week for the most recent cryptocurrency news highlights.