US Sanctions Crypto Blender Sinbad; Binance Lacks Philippine License; Genesis and DCG Reach Lawsuit Settlement
Summary:
US regulators have penalized cryptocurrency blender Sinbad on money laundering allegations for North Korea's Lazarus Group and seized their website. On the other hand, the Philippines regulatory authority confirms that Binance lacks the required permit to operate within the country. Meanwhile, a repayment agreement has been reached between bankrupt digital currency lender Genesis and the Digital Currency Group (DCG), that could potentially resolve Genesis' lawsuit against DCG.
The U.S. Treasury Department's Office of Foreign Assets Control has penalized cryptocurrency blender Sinbad, and confiscated their web portal, amidst claims they were involved in money laundering for North Korea's Lazarus Group. Simultaneously, the financial regulatory authority in Philippines asserts that Binance lacks the required documentation to function within its jurisdiction. Bankrupt digital coin lender Genesis and Digital Currency Group have arrived at an agreement potentially leading to the dismissal of Genesis' lawsuit against DCG.
The United States treasury accused Sinbad of handling vast amounts of virtual currency linked to North Korea's Lazarus Group, including funds from the Horizon Bridge, Ronin Bridge associated with Axie Infinity, and Atomic Wallet's 2022 hacks, which amounted to roughly $820 million in user funds at the time of the heist. Treasury official Wally Adeyemo indicated strong ramifications for such services that aid nefarious entities such as the Lazarus Group in processing stolen assets. He further reassured that various U.S. government agencies are prepared for proactive action against virtual currency mixers like Sinbad that encourage illicit activities. Sinbad's web portal now displays a message stating the confiscation of service by U.S. authorities.
The Securities and Exchange Commission of the Philippines (SEC) has warned against Binance, the cryptocurrency exchange operating without the necessary authorization or approval. According to the SEC, Binance doesn't possess the needed authorization to provide or sell securities in the nation. The notice emphasized a robust application process and obligatory provision of detailed offerings, including issuance price, nature of securities, and other relevant data. Issuers of the securities have to be listed within the country as per the Securities Regulation Code (SRC). Entities promoting Binance's services or trading on the platform could face legal repercussions under Section 28 of SRC per SEC's assertion.
Meanwhile, Genesis, the insolvent crypto lender, and its parent company, Digital Currency Group (DCG), have struck an agreement, signaling the end of an ongoing legal suit involving $620 million in due repayments by DCG. The agreement requires DCG to settle its outstanding debts amounting to $324.5 million by April of the next year and allows Genesis to pursue any unpaid balance. Genesis stated that this repayment deal offers them immediate substantial benefits and helps bypass the potential costs and risks associated with legal trials. A creditor vote will decide Genesis' repayment plans, which bankruptcy judge Sean Lean will subsequently consider.
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Published At
11/29/2023 8:38:34 PM
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