The United States Department of Justice has officially notified the court handling the bankruptcy of FTX that it has seized assets in accordance with criminal cases against the crypto exchange and its executives. In a Jan. 6 court filing, the Justice Department said it had seized 55,273,469 shares of Robinhood to which former FTX CEO Sam Bankman-Fried, BlockFi, and FTX creditor Yonathan Ben Shimon had made claims — worth more than $450 million at the time of publication. The DOJ noted it had also taken control of more than $20 million in U.S. currency from the brokerage firm ED&F Man …

Financial authorities in Germany are raising the alarm amid the rapid spread of a new financial malware affecting banking and cryptocurrency applications. Germany’s Federal Financial Supervisory Authority (BaFin) released an official statement on Jan. 9, warning consumers of “Godfather,” a malware collecting user data in banking and crypto apps. BaFin emphasized that the new virus is targeting about 400 banking and crypto apps, including those operating in Germany. Godfather malware attacks users by displaying fake websites of regular banking and crypto apps, stealing their login data. According to the regulator, it is yet to be determined how the malware attacks …

The government of Hong Kong remains committed to the development of cryptocurrency infrastructure despite the ongoing industry crisis triggered by the FTX collapse. According to Hong Kong’s financial secretary Paul Chan, the local government and regulators are open to collaboration with crypto and fintech startups in 2023. Speaking at an event hosted by the state-run incubator Cyberport, Chan declared that Hong Kong has become a foundation connecting high quality virtual asset firms, the public broadcasting service Radio Television Hong Kong (RTHK) reported on Jan. 9. The financial secretary said that the Hong Kong government has received lots of requests to …

Australian crypto exchange Swyftx is set to shutter its crypto-interest product this week, citing a “constantly changing regulatory landscape” for crypto products in the country. From Jan. 10 local time, the crypto exchange will cease to operate the "Earn" program, while users will have their entire Earn balances returned to their trade wallets. Swyftx said the decision might be “disappointing” for users, but they are “committed to doing what is best for the program in the near term.” While we believe in the value and potential of cryptocurrency, what we currently need is greater clarity on the regulation of crypto …

United States prosecutors are investigating hedge funds' relationships with cryptocurrency exchange Binance for money-laundering violations. According to anonymous sources cited by the Washington Post, the U.S. attorney’s office for the Western District of Washington in Seattle subpoenaed investment firms to provide records of communications with Binance in the past months. The allegedly subpoenas do not mean prosecutors are bringing charges against the crypto exchange or hedge funds, as authorities are still evaluating evidence and a possible settlement with Binance, according to legal specialists. Binance did not immediately respond to Cointelegraph’s request for comment. Binance is under probe in the United …

The United States Attorney’s Office for the Southern District of New York has launched a page on its website appealing to Sam Bankman-Fried’s victims of fraud at FTX to come forward and informing them about court proceedings. In a Jan. 6 filing, Assistant U.S. Attorney Danielle Sassoon requested the federal court allow her office to take “reasonable, accurate, and timely notice” to inform fraud victims from crypto exchange FTX while under the leadership of Bankman-Fried. According to Sassoon, the government proposed an “alternative plan” for notifying victims in the FTX case through an online notice which went live on Jan. …

The legal team for former FTX chief executive officer Sam Bankman-Fried has filed a motion in an effort to stop the exchange’s debtors from controlling more than $450 million worth of shares of Robinhood. In a Jan. 5 court filing regarding FTX’s bankruptcy case, Bankman-Fried’s lawyers said FTX debtors had “failed to carry their heavy burden” establishing that they had a legal claim to more than 56 million Robinhood shares. The legal team confirmed reports that the United States Departure of Justice was in the process of seizing the shares, but said SBF was “compelled to reply” given the stakes …

A crypto lobbying group based in Singapore has voiced its opposition to the proposal from the central bank to prohibit crypto firms from lending crypto tokens. On Oct. 26, Singapore's central bank issued consultation papers and proposed to ban digital payment token service providers from offering "any credit facility" to consumers. This includes either lending fiat or cryptocurrencies. However, the Blockchain Association of Singapore (BAS) believes that this may be overly restrictive. In a feedback document sent to the Monetary Authority of Singapore (MAS), BAS reportedly argued that a blanket ban could push crypto users to pursue lending their tokens …

A group of FTX customers has filed a limited objection to FTX’s plan to sell four independently-operated subsidiaries, arguing that they should be privy to the sales process to ensure customer interests are represented. It has also shared concerns that "misappropriated customer funds” may have been used to acquire, or keep these firms running. The limited objection was filed on Dec. 4 by an ad hoc committee of non-U.S. customers, which comprises 18 members who collectively have claims against FTX in excess of $1.9 billion. In its filing, the committee argued that previous public statements by FTX, the Securities and …

Francois Villeroy de Galhau, the Bank of France’s governor, has urged for more stringent licensing requirements for crypto companies in France, citing the current turmoil in the crypto markets. During a speech in Paris on Jan. 5, the central bank governor said France shouldn’t wait for upcoming EU crypto laws to enact obligatory licensing for local Digital Asset Service Providers (DASPs). The European Parliaments Markets in Crypto Assets bill (MiCA) provides a licensing regime for the EU amongst other regulations and is expected to come into force potentially sometime in 2024. According to a Jan. 5 Bloomberg report, Villeroy addressed …

Authorities with the United States Securities and Exchange Commission and Commodity Futures Trading Commission as well as prosecutors are reportedly investigating former FTX engineering director Nishad Singh for potentially having a role in defrauding investors and users. According to a Jan. 5 report from Bloomberg, U.S. officials were looking at individuals in former FTX CEO Sam Bankman-Fried’s inner circle in their criminal probe of the exchange’s collapse. Bankman-Fried has pled not guilty to all criminal charges against him, but former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang reached plea deals with prosecutors in December, admitting to fraud …

Fourteen years after Bitcoin's Genesis block launched a profound disruption in financial services and other industries through the rise of blockchain technology, United States authorities are finally becoming more interested in cryptocurrencies' future and economic impact. On Dec. 14, the Financial Accounting Standards Board (FASB) discussed new accounting and disclosure requirements for entities holding crypto assets in financial statements, following an agenda consultation with investors — the first one in five years. The proposed rules are expected to be issued in the first half of 2023. A few days earlier, the Securities and Exchange Commission (SEC) delivered a sample letter …