The liquidators of Three Arrows Capital (3AC) are now pursuing claims against FTX as part of their ongoing efforts to recover assets for the bankrupt crypto hedge fund. According to recent filings, the liquidators allege that FTX played a significant role in 3AC’s financial collapse, and they are now seeking to recover funds from the exchange. The legal action comes amid a broader investigation into the events that led to 3AC’s liquidation, with the liquidators targeting entities that may have contributed to or enabled the hedge fund’s downfall.

3AC, once one of the largest and most influential crypto hedge funds, filed for bankruptcy in July 2022 after it suffered heavy losses during the market downturn. The fund’s failure sent shockwaves through the crypto industry, exposing vulnerabilities in the DeFi and trading sectors. FTX, which had been involved in lending funds to 3AC, is now facing scrutiny over its role in the collapse. The liquidators argue that FTX’s actions contributed to the fund’s insolvency, prompting the pursuit of claims against the exchange for potential damages.

The legal move highlights the growing number of interconnected bankruptcies and legal disputes within the crypto sector, following the collapse of high-profile entities like 3AC and FTX. FTX itself filed for bankruptcy in November 2022, with founder Sam Bankman-Fried facing charges related to the exchange’s alleged mismanagement and fraud. The investigation into 3AC’s collapse and its links to FTX could further complicate the ongoing legal proceedings for both parties, as creditors and regulators look for accountability in the wake of the massive failures.

As the liquidators continue their recovery efforts, the outcome of this legal action could have broader implications for the crypto industry, particularly for firms involved in high-risk lending and trading practices. With the collapse of 3AC and FTX serving as stark reminders of the need for better risk management and transparency, the legal battles surrounding their bankruptcies are likely to shape the future regulatory landscape of the cryptocurrency market.

South Korean authorities have arrested 215 individuals in connection with a large-scale cryptocurrency scam that targeted investors through social media influencers. The scheme, which involved fraudulent cryptocurrency trading platforms, saw the perpetrators use popular influencers to promote fake investment opportunities. The authorities launched a crackdown after discovering that the scam had resulted in millions of dollars in losses for unsuspecting victims, many of whom were enticed by promises of high returns on digital asset investments.

The scammers used a network of influencers across various social media platforms to market the fake crypto investment schemes, convincing followers to invest in non-existent or worthless digital tokens. In some cases, the influencers were paid substantial fees to endorse these fraudulent platforms, further fueling the spread of the scam. The South Korean National Police Agency (NPA) led the investigation, which uncovered the complex web of deception and identified the individuals behind the operation.

This mass arrest is part of a broader push by South Korean authorities to combat cryptocurrency-related crimes and protect investors in the growing digital asset market. Cryptocurrency scams have become an increasing concern in South Korea, where retail investors are highly active in the crypto space. The government has been stepping up its efforts to regulate and monitor the sector, aiming to prevent fraudulent schemes and ensure that crypto trading remains secure and transparent for the public.

The arrests highlight the risks that come with the rise of influencer-driven promotions in the crypto market. South Korean authorities have warned that those who engage in promoting or operating fraudulent schemes will face severe legal consequences. The crackdown is expected to serve as a deterrent to other potential scammers, as the government intensifies its efforts to strengthen regulatory oversight and protect consumers from deceptive practices in the rapidly evolving cryptocurrency industry.

MoonPay, a prominent cryptocurrency payment service provider, has launched a new feature called “Balance” that enables users to manage their self-custody crypto assets and seamlessly spend them in the real world. The Balance tool, which integrates directly with MoonPay’s platform, allows users to store, track, and spend their cryptocurrencies from a secure self-custody wallet, giving them greater control over their digital assets. The service is designed to bridge the gap between digital and traditional finance by offering a simple way to convert and use crypto for everyday purchases.

With the Balance feature, MoonPay aims to empower users with more flexibility in managing their assets. Unlike custodial wallets, which store private keys on behalf of users, self-custody wallets give individuals full control over their private keys and, consequently, their funds. By integrating this self-custody solution with an easy-to-use interface, MoonPay is targeting both seasoned crypto enthusiasts and newcomers who want a seamless experience when it comes to storing and spending their crypto assets.

In addition to its self-custody capabilities, Balance also supports spending crypto directly at millions of merchants through its debit card integration. This integration allows users to convert their crypto into local currency at the point of sale, making it more convenient to use crypto for daily transactions. Whether for online purchases or in-person transactions, Balance aims to provide a simple and secure way to use crypto assets without the complexity typically associated with converting digital currencies to fiat money.

The launch of MoonPay Balance reflects the growing demand for more accessible and user-friendly solutions in the crypto space, as well as a broader trend towards increased adoption of digital currencies for everyday use. By prioritizing both security and convenience, MoonPay seeks to position itself as a key player in driving the mainstream adoption of cryptocurrency, while also addressing the need for secure and practical self-custody solutions.