FTX’s former law firm hit with lawsuit alleging it set up shadowy entities

The largest political party in South Korea, the Democratic Party, has launched a Digital Asset Committee focused on developing cryptocurrency policies and promoting industry growth.The committee held its inaugural meeting at the National Assembly Members’ Hall in Seoul on May 13, the local news agency News1 reported.During its first meeting, the committee highlighted the importance of resolving regulatory uncertainty and addressing burning issues like stablecoin regulation amid the push for US-dollar stablecoins by the US government.The new committee joins similar organizations in South Korea, including the Virtual Asset Committee launched in late 2024 and another public-private crypto task force introduced in 2022, both initiated by the Financial Services Commission (FSC).Exchanges like Upbit and Bithumb involvedThe leadership of the Digital Asset Committee includes South Korean officials and politicians, such as National Assembly Chairman Min Byeong-deok, who joined the committee as chairman.Additionally, the organization features standing general election committee Chairman Yoon Yeo-joon, Muksanism Committee Chairman Maeng Seong-gyu, National Assembly member Kim Byeong-gi and former National Assembly Chairman Kim Jeong-woo.Digital Asset Committee Chairman Min Byeong-deok, Yoon Yeo-jun, Maeng Seong-gyu and Kim Jeong-woo (from left to right). Source: News1According to a report by ChosunBiz, the committee will also include participation of executives from major local exchanges, including Upbit, Bithumb, Coinbit and Gopax.Criticism of “one-exchange, one bank” ruleAt the opening meeting, committee Chairman Min expressed concerns regarding limitations of South Korea’s current one-exchange-one-bank rule, implying that crypto exchanges are restricted to collaborating with only one lender.“There are clear shortcomings to the one exchange, one bank principle,” Min reportedly said, adding that the committee is working with regulators to resolve the issue.The chairman also mentioned discussions about which regulators should supervise the stablecoin industry and whether stablecoins should be subject to a licensing or reporting system.Related: South Korea presidential front-runner pledges to approve Bitcoin ETFs“There is also a point of contention as to whether the Bank of Korea or the FSC should handle the regulation,” he reportedly said.The news came shortly after a Bank of Korea executive expressed concerns over the issuance of the South Korean won-backed stablecoins.“Stablecoin has a great impact on the implementation of central bank policies such as monetary policy, financial stability, and payment settlement,” Bank of Korea’s Koh Kyung-chul reportedly said at a conference on May 12.“The negative impact on the central bank’s policy implementation should be minimized by the central bank’s practical intervention in the approval stage,” he added.Magazine: Finally blast into space with Justin Sun, Vietnam’s new national blockchain: Asia Express

Arizona Governor Katie Hobbs vetoed two key cryptocurrency-related bills that aimed to expand the state’s involvement in digital assets while signing a strict regulatory measure targeting Bitcoin ATMs.On May 12, Hobbs rejected Senate Bill 1373, which sought to establish a Digital Assets Strategic Reserve Fund. The fund would have allowed Arizona to hold crypto assets obtained through seizures or legislative allocations.“Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars,” she stated in her veto letter. “I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk,” she added.That decision followed her veto of Senate Bill 1025 — the more ambitious “Arizona Strategic Bitcoin Reserve Act” — on May 3. It would have authorized up to 10% of the state’s treasury and retirement funds to be invested in Bitcoin and other digital assets.According to data from bitcoinlaws.io, 26 US states have introduced strategic crypto reserve bills, with 18 of them currently active. Hobbs also vetoed Senate Bill 1024, which would have permitted state agencies to accept cryptocurrency payments for taxes, fines and fees via approved service providers.Although the proposal attempted to shield the state from direct exposure to price volatility, Hobbs said it still introduced “too much risk.”Source: State of Arizona, Office of the GovernorRelated: Taiwan lawmaker calls for Bitcoin reserve at national conferenceHobbs approves Bitcoin ATM billOn May 12, Hobbs approved House Bill 2387, which introduces new consumer protection rules for cryptocurrency kiosk (ATM) operators, aiming to reduce fraud and improve transparency.The bill mandates that kiosks display clear, multilingual warnings about common crypto scams and require users to acknowledge these risks before completing transactions. Operators must also provide detailed receipts that include transaction data, contact information, fees and refund policies.Furthermore, the bill caps transactions at $2,000 per day for new customers and $10,500 per day for returning users after 10 days. Kiosk providers must also offer 24/7 toll-free customer service and post the number visibly on each machine.Under the bill, if a new user is tricked into sending crypto under false pretenses and reports it with proof within 30 days, they are entitled to a full refund, including fees.According to CoinATMRadar, there are currently 20 active Bitcoin ATMs in Arizona. Notably, Hobbs has not entirely closed the door on digital assets. On Wednesday, she signed House Bill 2749, which updates Arizona’s unclaimed property laws to include digital assets.The legislation allows the state to retain unclaimed cryptocurrencies in their original form rather than liquidating them into fiat currency.Magazine: Bitcoin eyes ‘crazy numbers,’ JD Vance set for Bitcoin talk: Hodler’s Digest, May 4 – 10

GD Culture Group (GDC), a Nasdaq-listed holding company focused on livestreaming, e-commerce and artificial intelligence-powered digital human technology, plans to raise up to $300 million for a cryptocurrency treasury reserve.In a May 12 statement, GDC and its subsidiary, AI Catalysis, announced entering into a common stock purchase agreement with a British Virgin Islands limited liability company to sell up to $300 million of its common stock.The proceeds from the stock sale will be used to fund the firm’s crypto treasury, which will include purchases of Bitcoin (BTC) and the Official Trump (TRUMP) token.“Under this initiative, and subject to certain limitations, GDC intends to allocate a significant portion of the proceeds from any share sales under the facility to the acquisition, long-term holding, and integration of crypto assets into its core treasury operations,” the company said in the announcement. GDC described the strategy as a move to align with the broader “decentralization transformation.”GDC stock price, 1-year chart. Source: NasdaqFounded in 2016, GDC is a micro-cap company with a current $34 million market capitalization, according to Nasdaq data.Related: Multi-wallet usage up 16%, but AI may address crypto fragmentation gapGDC’s chairman and CEO, Xiaojian Wang, said the initiative builds on the company’s strengths in digital technologies and positions it for a blockchain-powered industrial shift.“GDC’s adoption of crypto assets as treasury reserve holdings is a deliberate strategy that reflects both current industry trends and our unique strengths in digital technologies and the livestreaming e-commerce ecosystem,” Wang said.The stock offering was announced over a month after the firm received a noncompliance warning from Nasdaq related to its stockholders’ equity. The notice indicated that the firm reported stockholders’ equity of only $2,643, well below the minimum requirement of $2.5 million.The firm was given until May 4 to submit a plan to comply with the listing requirements. If accepted by Nasdaq, the compliance plan will allow up to 180 days from the notification period to comply with the requirements.The Nevada-based company joins a small but growing group of public firms that are allocating part of their balance sheets to crypto assets. Related: Crypto speculation dominates $600B cross-border payments: BIS reportTrump token dinner planned for top holdersGDC’s announcement coincides with an upcoming high-profile event tied to the Trump token project. The 25 largest holders of TRUMP tokens are set to attend a private dinner at the White House on May 22.However, the TRUMP memecoin project said in a May 12 X post that it has stopped considering additional purchases for the dinner and that the attendees had been notified to apply for background checks.According to data provided on the project’s leaderboard, the top 220 wallets held more than 13.7 million tokens as of May 12, worth about $174 million at the time of publication.Top 10 TRUMP memecoin holders as of May 12. Source: TRUMP memecoin projectSome US lawmakers have criticized the dinner. Republican Senator Cynthia Lummis reportedly said that the idea of the US president offering exclusive access for people willing to pay “gives [her] pause.”Crypto regulation experts also fear that the Trump family’s crypto endeavors may trigger more regulatory scrutiny by the US Securities and Exchange Commission, as politically affiliated memecoins introduce a new challenge for crypto legislation.Magazine: Uni students crypto ‘grooming’ scandal, 67K scammed by fake women: Asia Express