Argentina Approves Crypto for Contract Settlements; Court Freezes 3AC Founders' Assets; Ex-FTX CEO's Sentencing Delay Denied
Summary:
Argentina's Foreign Affairs Minister, Diana Mondino, announces that a new economic reform now allows for contract settlements to be done using Bitcoin and other cryptocurrencies. Meanwhile, a British Virgin Islands court has globally frozen the assets of 3AC co-founders Su Zhu and Kyle Davies worth over $1 billion amid the firm's bankruptcy saga. Also, former FTX CEO Sam Bankman-Fried’s request for a sentencing delay has been rejected by a judge, following his conviction on seven fraud-related charges.
Argentina's Minister for Foreign Affairs, International Trade and Worship, Diana Mondino, has stated that a newly introduced economic reform now allows for contractual obligations to be settled using Bitcoin (BTC) and other virtual currencies. Elsewhere, a court in the British Virgin Islands has imposed a worldwide asset freeze on 3AC co-founders Su Zhu and Kyle Davies. Meanwhile, Sam Bankman-Fried’s, ex-CEO of FTX, plea for a sentencing delay has been rejected by Judge Lewis Kaplan.
Cryptocurrency use for contract settlements in Argentina has been greenlighted by the country’s Foreign Minister, Diana Mondino. Via a post on X (previously known as Twitter), she explained that the recent heralded economic restructuring legislation permits Argentinians to transact using Bitcoin and other cryptos under specific conditions. Named the "Bases for the Reconstruction of the Argentine Economy", the decree permits debtors to pay using selected digital assets devoid of legal tender recognition. Bitcoins and other cryptos can be used for contract fulfillment, according to Mondino, reinforcing the increased adoption of cryptocurrency in Argentina. The edict paves the way for Argentinians to settle contracts not only in cryptos but also with commodities such as milk or cattle. It's noteworthy that the new Minister, who followed in the footsteps of now-President Javier Milei, is seen as being favorable to Bitcoin.
In related news, a court in the British Virgin Islands has frozen over a billion dollars' worth of assets belonging to 3AC's founders. This is in relation to the ongoing bankruptcy saga of Three Arrows Capital (3AC), a cryptocurrency hedge fund headquartered in Singapore. The court has forbidden Zhu and Davies from reallocating or disposing of assets valued up to $1.14 billion after the report from Bloomberg firm’s liquidator Teneo on Dec. 21. Reportedly, Davies’ wife, Kelly Chen's assets are also impacted. The 3AC creditors are allegedly due to approximately $3.3 billion following the catastrophic collapse of the fund in 2022. Teneo claims the founders' actions led to the deterioration of 3AC’s position, equating to the value of the frozen assets. Additionally, the Singapore Court has imposed a local asset freeze order on the founders.
In another development, a request by Sam Bankman-Fried, a previously convicted felon and ex-CEO of FTX, to postpone his sentencing hearing was declined by Judge Kaplan. The plea was made a day before his pre-sentencing interview, with his attorney, Mark Cohen, expressing they needed more time for preparation. The request was denied by Judge Kaplan, highlighting that the defense team did not oppose the sentence date when it was initially confirmed. On November 7, Bankman-Fried was found guilty on seven counts including wire fraud, securities fraud, and commodities fraud, along with conspiracy to commit money laundering. He had pled not guilty to all allegations.
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Published At
12/21/2023 11:13:30 PM
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