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.

The FBI has raided the home of Polymarket CEO Shayne Coplan as part of an ongoing investigation into the decentralized prediction market platform. According to reports, federal agents executed the search warrant in connection with allegations that Polymarket violated U.S. gambling laws by facilitating unregistered betting activities through its platform. Polymarket allows users to bet on the outcomes of various events, including political elections and market trends, using cryptocurrency, and has faced increasing scrutiny over its legal standing in the U.S.

Polymarket has been under investigation since at least 2021, with regulators questioning whether the platform’s model crosses the line into illegal gambling. While Polymarket operates as a prediction market, critics argue that the site’s structure, which allows users to wager on future events, mirrors traditional gambling activities that are heavily regulated in the U.S. The raid on Coplan’s residence indicates that the investigation is intensifying, with authorities seeking more information to determine if the platform has been operating in violation of federal law.

This development follows a series of legal challenges faced by Polymarket, including a previous settlement with the Commodity Futures Trading Commission (CFTC) in 2022. In that case, Polymarket agreed to shut down certain markets and pay a fine, while asserting that it did not consider its platform to be a gambling service. However, with the latest FBI raid, it appears the scrutiny on Polymarket is far from over, and the outcome could have significant implications for the future of decentralized finance (DeFi) platforms that operate in a regulatory gray area.

As the investigation unfolds, it could set a precedent for how U.S. authorities handle similar prediction markets and decentralized applications. While Polymarket continues to operate, the situation underscores the growing regulatory pressure on crypto platforms, particularly those dealing with financial transactions and activities that resemble traditional betting and gambling. The future of Polymarket and its CEO will depend on the legal outcomes of these investigations, with potential ramifications for the broader DeFi and cryptocurrency space.

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.