FTX Victims in Hong Kong Triumph in Lawsuit, Bankers Criticize Stablecoins: Asia Express

Victims of the Hong Kong-based FTX have finally secured a win in a civil lawsuit against the now-defunct Dubai-based cryptocurrency exchange JPEX and its affiliate, Web 3.0 Technical Support. The court ruling has resulted in the recovery of 1.85 million Hong Kong dollars, equivalent to around $238,000, on behalf of the plaintiffs.

Joshua Chu, co-chair of the Hong Kong Web3 Association and the plaintiffs’ lawyer, emphasized the significance of this judgment. He highlighted that victims of virtual currency-related cases do have legal recourse, setting a valuable precedent for those struggling to recover their cryptocurrencies amid the limited legal expertise and precedents in Hong Kong. Chu and his clients are currently pursuing enforcement action to regain funds currently in police custody, amounting to approximately $29 million.

This legal victory sheds light on the challenges faced by victims of digital currency fraud in Hong Kong. The six-year statute of limitations for civil cases poses an obstacle, potentially giving fraudsters the opportunity to wait out the deadline. The JPEX scandal, reminiscent of the FTX collapse in Hong Kong, brought considerable losses to investors due to mismanagement and lack of transparency.

In other news, Gemini continues its expansion in the Asia-Pacific region with a recent in-principle approval for Singapore’s Major Payment Institution license. With this license, Gemini joins a select group of businesses authorized to provide cross-border transfers and digital payment token services in Singapore. This move signifies the growing interest in cryptocurrencies in the region, with more crypto exchanges expected to receive regulatory approval.

On a different front, central bankers recently gathered to discuss stablecoins, expressing skepticism and unease about their use. Reserve Bank of India Governor Shaktikanta Das criticized stablecoins, advocating for central bank digital currencies instead. He emphasized the importance of sovereign fiat currency issued by central banks over privately issued stablecoins. Das further highlighted his discomfort with private sector money, suggesting that central bank-issued currencies should dominate the payment ecosystem to ensure stability and control.

Overall, these developments underscore the evolving landscape of cryptocurrencies and digital assets in the Asia-Pacific region, highlighting both legal victories and regulatory challenges.