Asia’s Weekly TOP10 Crypto News (Sept 16 to Sep 22)

1. Indian court bars police from freezing entire bank accounts in crypto fraud probe link

The Madras High Court in India has ruled that police cannot freeze an entire bank account during a financial fraud investigation, but only the amount directly related to the fraud. The ruling came in response to a case where accounts were frozen as part of a cryptocurrency investigation. Justice G. Jayachandran stressed that freezing an entire account can deprive individuals of their livelihood and financial stability. He noted that account holders are often unaware of the reason for the freeze, and by the time they realize it, their routine financial and business transactions have already suffered significant damage.

2. Mainland China’s Crypto News This Week

2.1 Cryptocurrency dispute dismissed by Hunan court after buyer’s lawsuit link

In this case, a person named Zhou sought help from his friend Dai to purchase BZZ, a type of cryptocurrency, for investment purposes. Dai acted on behalf of Zhou, purchasing BZZ from Zheng and sending the virtual currency to Zhou’s imToken wallet. However, Zhou later filed a lawsuit against Zheng in court, demanding the return of the 76,518 yuan he paid for the BZZ, along with compensation for the use of his funds. The court ruled that cryptocurrency is not legal tender and the related transactions are considered illegal financial activities, which are not protected by law. Consequently, Zhou’s claim was dismissed and the appeals court upheld the original verdict.

2.2 Chongqing Police Solve Case of Virtual Currency Theft Involving 400,000 RMB link

The Chongqing Liangjiang New Area Police Department recently solved a case of virtual currency theft involving more than 2.6 million BLAST coins, worth about 400,000 yuan. The three suspects, all employees of a technology company, abused their positions to commit the theft. In June, they planted malicious code on the company’s computers, stealing the virtual wallet address and private key password. On the night of June 26, after the company’s virtual wallet received BLAST coins from the game’s official platform, the suspects immediately transferred the cryptocurrency to a pre-prepared wallet and quickly cashed out to distribute the proceeds. The three suspects have been arrested and charged with theft, and the case is currently under further investigation.

3. Hong Kong police dismantle local branch of cryptocurrency money laundering syndicate, seize over HK$600 million link

Hong Kong police have dismantled the local branch of a transnational criminal syndicate operating an illegal gambling platform, successfully arresting four key members. The operation, codenamed “Twin Guns,” targeted the syndicate’s 24-hour operations center in Tsuen Wan. The platform primarily served gambling activities in Southeast Asia and processed a daily betting volume of up to HKD3 million. Since its launch in February this year, the platform has processed more than HKD668 million. The criminal group actively promoted its services through social media, text messages and mobile apps, offering attractive incentives such as “new member registration bonuses” and “cash in, cryptocurrency out” schemes.

4. Russian man arrested for allegedly sending crypto to Ukrainian forces, charged with treason link

A man in Komsomolsk-on-Amur, a city in Russia’s Far East, has been arrested on treason charges for allegedly funneling cryptocurrency to the Ukrainian Armed Forces. The man is accused of financially supporting the Ukrainian military through cryptocurrency, with the funds possibly being used to purchase weapons, ammunition and uniforms. A video released by Russia’s Federal Security Service (FSB) shows several officers rushing out of a vehicle, overpowering the suspect and handcuffing him. The case has been classified as treason and is currently under investigation.

5. More Japanese companies are pushing for relaxed crypto regulations as industry support grows link

In addition to Sony, other Japanese companies exploring blockchain-related projects include Nippon Telegraph and Telephone Corporation (NTT), Toyota Motor Corporation and Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, which is exploring issuing stablecoins. Under Prime Minister Fumio Kishida, regulators have taken steps to simplify the process of listing digital tokens on cryptocurrency exchanges and have prioritized Web3 initiatives. However, with Kishida’s term nearing its end, it remains uncertain whether his successor will continue to support Web3. A major concern for industry participants is the tax disparity, with traditional investment gains taxed at 20%, while cryptocurrency gains can be taxed at up to 55%. On the positive side, crypto trading activity in Japan is recovering, with average monthly trading volumes on centralized exchanges (CEX) approaching $10 billion, up from $6.2 billion in 2023, according to CCData.

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6. Do Kwon extradition case returns to Montenegrin Justice Minister link

Montenegro’s Ministry of Justice will decide whether to extradite Terraform Labs co-founder Do Kwon to the United States or South Korea following a ruling by the country’s Supreme Court. In a Sept. 20 notice, the Supreme Court said Kwon’s case has been referred to the justice minister following a decision on the request for protection of legality. According to the Supreme Court, both South Korea and the United States meet the extradition requirements to face Montenegro’s criminal charges.

7. India’s Supreme Court’s YouTube Channel Reportedly Hacked to Broadcast Crypto Ads link

According to Bloomberg, the official YouTube channel that the Supreme Court of India uses to livestream court cases was reportedly hacked on Friday, with cryptocurrency ads being broadcast and videos related to cryptocurrency products being uploaded. Following the incident, the entire page was taken down. The Supreme Court has used YouTube to livestream important cases to the public, and the channel previously kept recordings of court cases. However, the currently archived videos have been set to private, and the homepage shows a blank video with a title that refers to cryptocurrency. Supreme Court officials did not respond to emails and phone calls seeking comment.

8. DBS Bank plans to launch crypto options and structured bonds for institutional clients link

Singapore’s DBS Bank will launch over-the-counter (OTC) cryptocurrency options and structured notes for institutional clients, and will continue to offer financial products pegged to Bitcoin and Ethereum. While the bank did not disclose specific dates, it indicated that issuance of these cryptocurrency products will begin in Q4 2024. Jacky Tai, head of the bank’s trading and structuring department, said the move expands the firm’s offering of digital asset exposure to its clients.

9. Documentary ‘Vitalik: The Story of Ethereum’ Premieres link

The documentary “Vitalik: The Story of Ethereum” will premiere in 23 countries on Wednesday and will stream for 30 days on the website ethereumfilm.xyz, with plans for release on major streaming platforms in 2025. The film, funded by raising 1,036 ETH in 2021, tells the story of Vitalik Buterin and the Ethereum builder community, featuring interviews with Buterin, his parents, and other tech experts including Dmitry Buterin, Danny Ryan, Itzel Yard, and Tim O’Reilly.

10. Chainalysis: Hong Kong Leads East Asia in Cryptocurrency Transaction Growth link

Research firm Chainalysis released its “Global Cryptocurrency Adoption Index” on Wednesday, showing that Hong Kong has risen from 47th place last year to 30th place this year. The report said that Hong Kong’s cryptocurrency trading volume increased by 85.6% year-on-year, making it the city with the highest growth in East Asia. Chainalysis attributed the increase to the legal acceptance of cryptocurrency by Hong Kong authorities and their decisiveness in developing a legal framework, which has encouraged institutional adoption of cryptocurrencies. According to the report, South Korea has the largest cryptocurrency trading volume in East Asia.