Autor Cointelegraph By Ciaran Lyons

Getting funds out of FTX could take years or even decades: Lawyers

Getting funds out of FTX could take years or even decades: Lawyers

Uverejnil používateľ | nov 21, 2022 |

While investors are eager to know when they will be able to get their funds back from the now-bankrupt crypto exchange FTX, insolvency lawyers warn it could take “decades.”The crypto exchange, along with 130 affiliates filed for Chapter 11 bankruptcy protection in the United States on Nov. 11.Insolvency lawyer Stephen Earel, partner at Co Cordis in Australia said it will be an “enormous exercise” in the liquidation process to “realize” the crypto assets then work out how to distribute the funds, with the process potentially taking years, if not “decades.”This is due to the complexities that come with cross-border insolvency issues and competing jurisdictions, he said. Earel said unfortunately FTX users are in the queue with everyone else including other creditors, investors and venture capital funders, warning those that have made “crypto to crypto trades” may not see a distribution “for years.”Simon Dixon, founder of global investment platform BnkToTheFuture who has been an active voice in the Celsius bankruptcy proceedings noted that anyone who holds funds on FTX will become creditors, with a creditors committee to be established to represent their interests. He stated that the remaining assets will eventually be available to creditors depending on what remains after bankruptcy costs.These costs could be high given the time required to recover funds, according to Binance Australia CEO, noting that this means more legal and administrative fees that eat into customers’ return.Meanwhile, Digital Assets Lawyer Irina Heaver, Partner at Keystone Law in UAE told Cointelegraph that there are users in the Middle-East also feeling the pain from the FTX collapse, as the region was the third largest user base of FTX. Heaver explained that as FTX already received a license and regulatory supervision from the newly formed Dubai’s Virtual Assets Authority regulator (VARA), it presents major complications for the regulators as they already have a “huge regulatory failure” on their hands.Heaver said only “when and if” FTX moves into Chapter 11 bankruptcy procedures, creditors’ rights will be overseen by the legal system, with courts and bankruptcy administrators involved.Related: Bankrupt crypto exchange FTX begins strategic review of global assetsHeaver’s advises people with substantial losses due to the FTX collapse to get legal advice and get together with “other injured parties.”The recent FTX collapse has had significant consequences for investors across the world. It was recently revealed that the bankrupt cryptocurrency exchange may have “more than 1 million creditors.” According to a Reuters article published on Nov. 20 the bankrupt cryptocurrency exchange owes its biggest 50 creditors “nearly $3.1 billion.”

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Charities risk losing a generation of donors if they don't accept crypto

Charities risk losing a generation of donors if they don't accept crypto

Uverejnil používateľ | nov 15, 2022 |

Charities accepting crypto donations are setting themselves up for an entirely new demographic of funders — who just so happen to be one of the most giving, according to charity organizations. Alex Wilson, the co-founder of The Giving Block, a crypto donation platform providing back-end support to charities, told Cointelegraph that the crypto community is still a market many charity organizations have nointeracted with. The top charity organizations in the world by funds received including United Way Worldwide, Feeding America, and UNICEF. All three of them accept cryptocurrencies as a means of donation. The Giving Block co-founder said the crypto community has been great with the “philanthropic use” of cryptocurrency, and those crypto donors are also some of the “most generous” — with the average gift being over $10,000.UNICEF Australia New Product and Innovation Lead Zunilka Whitnall said it was important that charities implement blockchain technology to make their fundraising more transparent to the general public. She also noted that the technology will also give them access to a “new demographic of funders.”Whitnall however noted that there is a “gap in understanding” of what blockchain is and how they work for many charity organizations.Bryce Thomas, co-founder of Tokens for Humanity, an organization developing blockchain applications for the charity sector told Cointelegraph that the majority of cryptocurrency holders and users are between the ages of 18 to 35 — a demographic which is difficult for many charities to engage with.Thomas said blockchain integration “solves the problem” of donor engagement with younger demographics.He also noted that there has been a “resurgence” of interest in tracking and reporting the impact of nonprofits and that blockchain technology would enable a clearer way for transparency and accountability.UNICEF’s Whitnall said its current focus with blockchain technology is improving its efficiency in distributing resources globally, as well as making its internal operations more efficient and transparent to the wider community. Related: NFTs and crypto provide fundraising options for breast cancer awarenessCryptocurrency has been a popular means of giving to charitable causes. Ether (ETH) was the most-donated cryptocurrency in 2021, totaling $30.79 million in donation volume via The Giving Block.This year, crypto donations has most notably been a major lifeline for Ukraine’s defense against Russia, with the Ukrainian government spending $54M of crypto donations on military equipment, hardware, munitions amongst other defense equipment.

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Saying ‘not financial advice’ won’t keep you out of jail: Crypto lawyers

Saying ‘not financial advice’ won’t keep you out of jail: Crypto lawyers

Uverejnil používateľ | nov 3, 2022 |

Crypto influencers may need to practice what they preach and “do their own research” when it comes to sharing their crypto tips.According to several digital asset lawyers, the popular disclaimer “this is not financial advice” — may not actually protect them in the eyes of the law. United-States-based securities lawyer Matthew Nielsen from Bracewell LLP told Cointelegraph that while its “best practice” for influencers to disclose that “this is not financial advice,” simply saying the term will not protect them from the law as the “federal and state securities laws heavily regulate who can offer investment advice.”Australian financial regulatory lawyer Liam Hennessy, a partner at Gadens, explained that “advice warnings” are “by and large pretty useless,” while Australian digital lawyer Michael Bacina of Piper Alderman added that they aren’t “magic words which when uttered will disclaim liability.”Crypto influencers and celebrity ambassadors have been increasingly finding themselves under the scrutiny of regulations, particularly in the United States. Nielsen cited the recent Kim Kardashian case as an example, where Kardashian was charged by the SEC for failing to disclose how much she received to promote EthereumMax to her followers. Influencers feeling the pressureCrypto influencer Mason Versluis, aka Crypto Mason, who has over a million followers on Tik Tok, told Cointelegraph that he can’t stress enough to his followers that his content should not “be taken as financial advice.” Versluis however said that despite using the disclaimer “this is not financial advice,” it’s important for influencers to be mindful that some people do “make financial moves according to what certain influencers say.”He also stressed how difficult it can be to determine whether a project will end up in a “rug pull” situation as influencers “simply deal with the marketing team,” and generally have no contact “with any of the developers or owners.” Australian crypto influencer Ivan Vantagiato, aka Crypto Serpent who has amassed 68,000 followers on Tik Tok says that influencers should do their due diligence researching a crypto project before running a promotion.Related: Aussie crypto ‘finfluencers’ face tough new legal restrictionsHennessy believes the best way for crypto influencers to protect themselves is to be able to determine “what token is a security and what token is not a security.”He further explained that it’s critical to understand that a “derivative is a product that derives its value from something else,” and you can be “criminally liable” for promoting derivatives. Meanwhile, Bacina noted that an influencer residing in Australia is required to have a license to give out financial advice, and that “no disclaimer is going to give protection.”

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Criminal use of crypto an ‘emerging threat’ — Australian police

Criminal use of crypto an ‘emerging threat’ — Australian police

Uverejnil používateľ | okt 25, 2022 |

Australia’s federal law enforcement agency has highlighted the criminal use of cryptocurrency as an “emerging threat” in the country but says it’s a continuous challenge to keep up the pace with criminals. A spokesperson for the Australian Federal Police (AFP) told Cointelegraph that there has been an “increase in the number of offenders using cryptocurrencies to facilitate illicit business and attempting to conceal the ownership of assets,” noting: “The criminal use of cryptocurrency is an emerging threat for law enforcement.”However, they admitted the biggest challenge for law enforcement is to “continually evolve” their “tools, techniques and legal frameworks” to keep pace with criminals, particularly as mainstream adoption of cryptocurrency increases.Last month, the AFP established a new cryptocurrency unit focused on monitoring crypto-related transactions. However, the spokesperson said that despite the previous establishment of crypto-focused units, “criminals are continuing to find opportunities to avoid law enforcement and exploit the public.”Misplaced focus? One Australian private investigator believes the AFP is yet to focus on the “prolific and profitable” crypto crime yet — online investment fraud. IFW Global executive chairman Ken Gamble told Cointelegraph that most of the AFP’s focus recently has been on crypto money laundering relating to drug trafficking, cyber intrusion, ransomware, email compromise and hacking, but not “large-scale online investment fraud.” Scamwatch data between January and July this year found that Australians had lost 242.5 million Australian dollars ($152.6 million) to scammers in 2022 already, with the majority of funds lost to investment scams, including romance baiting scams, classic Ponzi schemes and cryptocurrency scams. The figure is already 36% higher than the that of the whole of 2021. The investigator also believes that some law enforcement departments are still not fully equipped to handle crypto crime cases adding that “law enforcement agencies need better training and education on how cryptocurrency works.”A report from analytics firm Chainalysis in July found that 74% of public agencies felt under-equipped to investigate cryptocurrency-related crime, with respondents indicating that many agencies did not use specialized blockchain analytical tools. “There is a shortage of professional and certified cryptocurrency tracers rapidly involving the criminal industry,” said Gamble. Related: Put your hands up! Interpol storms into the metaverseThis may be soon to change, with a number of international and national authorities announcing the establishment of crypto-crime-focused units this year. Meanwhile, Interpol (International Criminal Police Organization) recently set up a special team in Singapore to help the government fight crimes involving virtual assets. Interpol secretary Jürgen Stock stated at Interpol’s general assembly in India on the need for further training in crypto for law enforcement, saying cryptocurrency “poses a challenge,” as agencies are “not properly trained and properly equipped from the beginning.”

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NFTs will be ‘as disruptive’ as Bitcoin was 10 years ago — Kraken exec

NFTs will be ‘as disruptive’ as Bitcoin was 10 years ago — Kraken exec

Uverejnil používateľ | okt 14, 2022 |

Non-fungible token (NFT) trading volumes may have dropped nearly 98% since January, but several industry executives tell Cointelegraph it’s nothing to fear as the technology continues to develop and mature. Jonathon Miller, managing director of cryptocurrency exchange Kraken in Australia said “despite NFT market activity and sales volume having slowed down in September, we are still seeing positive adoption signals at an institutional level and continued growth in use cases.”He told Cointelegraph that the company remains “bullish on the NFT space” and believes it will be “just as disruptive and innovative as Bitcoin was 10 years ago,” and said he was particularly intrigued by JPMorgan signing “a lease using the technology” as well as hearing the news that “the Vatican has opened an NFT gallery.”He however acknowledged that the NFT industry is still “in its infancy” and that the biggest barrier to mass adoption is “nightmare user experiences,” saying that it is “very hard to say to someone who wants digital art, that you have to install a wallet and you have to onboard with that exchange.The Kraken executive said it has been a priority for them to make that process smoother.John Stefanidis, CEO and founder of NFT gaming platform Balthazar DAO told Cointelegraph that the trading downfall is not significant in the grand scheme of NFTs as people need to understand that “NFTs are more than just photos.” Stefanidis said it’s natural for this decline to happen after “something has experienced extreme growth under one application.” He believes this has the potential to stabilize the market more, saying that “whenever there is horizontal growth, people diversify and pull back, and we’re going to see a more gradual growth in NFTs.”Related Reading: Web3 gaming still a long way from mainstream adoption: SurveyMason Edwards, Chief Commercial Officer of Tezos Foundation, an organization focused on promoting and developing the Tezos blockchain and related technologies, told Cointelegraph that it’s “beneficial the market has shaken out a bit, people will buy things they care about, rather than speculation,” noting: “We’re still not at a point of maturity in the NFT market, we’re still going to see people buy a rock for a million dollars.”

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