Welcome to the Cryptoverse, a weekly series that summarises the world of crypto. This series will distil an up-to-date understanding of the important forces driving the crypto market, both from an Africa-focused perspective and on the global stage. Welcome on board!

1. Police nabs fresh suspects in Patricia’s hack case - Africa

Nigerian authorities have identified seven individuals linked to a ₦142.8 million ($155,734) hack on the Patricia platform. The police report indicates the operation occurred between October 2021 and February 2022. Six suspects, including an Uber driver, two Bureau De Change traders, a senior special assistant to a governor, a driver, and a musician, have been questioned. However, the alleged mastermind remains at large. Notably, this follows the arrest of politician Wilfred Bonse in connection with a ₦607 million ($750,000) Patricia hack. Bonse is accused of laundering ₦50 million ($61,800) from the diverted funds. Patricia, victimized in May 2023, announced resuming repayments in November, yet some customers continue to report non-payment. The trial for Bonse is rescheduled for June 2024.

2. Singapore is going harder on crypto - Africa

Singapore is fortifying its regulatory framework against retail cryptocurrency speculation with new measures set to take effect from mid-2024. The Monetary Authority of Singapore (MAS) announced that individual investors will be prohibited from borrowing to trade cryptocurrencies. Digital payment token service providers are barred from offering incentives for retail trading, financing, margin, or leverage transactions, and they cannot accept locally issued credit card payments. These rules, expanded to cover all investors regardless of residency, mark a shift from previous regulations that focused only on those based in Singapore. The MAS aims to gradually implement these measures, extending its efforts to curb speculative activities in the cryptocurrency space after recent high-profile incidents. Despite the stringent measures, the MAS has emphasized the inherent risks of cryptocurrency trading and advises against dealings with unregulated entities.

3. India’s crackdown on crypto is biting Binance hard - South Asia

India has intensified its crackdown on offshore cryptocurrency exchanges operating without local registration, instructing Apple Inc. to remove apps of platforms such as Binance, Bitfinex, HTX, and Kucoin from its App Store in the country. The directive from the Ministry of Electronics and Information Technology resulted in the removal of eight exchange apps. This move is a significant escalation following India's December 28 notification to nine exchanges of suspected misconduct. Concerns about potential fund loss prompted Indian crypto traders to shift deposits to compliant local exchanges. Authorities have also asked Google to remove these apps. The Financial Intelligence Unit issued compliance show-cause notices, alleging illegal operations in India without adherence to anti-money laundering laws. As of now, the websites of these entities remain accessible from India. Apple, Google, and India's technology ministry have not commented on the situation.

4. Circle is still moving closer to its IPO - US

Circle Internet Financial Ltd., a leading stablecoin provider with a $25 billion valuation, has confidentially submitted plans for an initial public offering (IPO) more than a year after abandoning a special purpose acquisition company (SPAC) deal valued at $9 billion. The company, led by Jeremy Allaire, filed a draft registration statement with the US Securities and Exchange Commission. The number of shares and the price range for the IPO will be determined later. Circle, whose stablecoin USDC is pegged to the dollar, faced a decline in circulation from its peak of $56 billion due to exposure to the collapsed Silicon Valley Bank. Investors in Circle include major Wall Street players such as Goldman Sachs, BlackRock, and Fidelity Management. The IPO plans come as stablecoins play a crucial role in digital asset trading and wealth storage.

5. Do-Kwon might have to face his legal battles in the US, in person - US

Terraform Labs Pte. co-founder, Do Kwon, facing charges of orchestrating a $40 billion cryptocurrency fraud, may face extradition to the US by mid-March, according to his lawyer. Currently in custody in Montenegro for using a fake passport, Kwon is seeking a delay in the Jan. 29 trial for a US Securities and Exchange Commission (SEC) lawsuit with similar allegations. His lawyer, David Patton, states that Kwon's extradition process in Montenegro is in its final stages, and he could be in the US by mid-March. Kwon faces extradition requests from both the US and South Korea, with the decision resting on Montenegrin officials and their country's laws. The case adds to the recent legal actions involving cryptocurrency figures, notably the conviction of FTX co-founder Sam Bankman-Fried. Prosecutors allege that Kwon deceived investors about Terra blockchain, contributing to the spring 2022 collapse of Terraform’s TerraUSD stablecoin and impacting FTX. The trial delay would provide Kwon a "realistic possibility" of attending the SEC trial.

6. Former FTX customers don’t like the repayment plan they’re getting - US
Former customers of the bankrupt FTX Trading Ltd. are raising objections to the proposed bankruptcy plan, arguing that it unfairly excludes them from the surge in cryptocurrency prices since the filing date of November 11, 2022. Over 80 individual customers have filed letters challenging the plan, which proposes converting crypto assets to US dollars and pegging their value to the 2022 level. The customers, who had crypto trapped on the FTX platform when founder Sam Bankman-Fried resigned amid fraud allegations, assert that the plan overlooks the significant rise in Bitcoin and other digital currencies since the filing. The bankruptcy team argues that determining the precise value of each customer's digital portfolio is impractical due to the large number of claims. The proposed payout plan will undergo a vote by creditors before final approval from US Bankruptcy Judge John Dorsey.

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