UAE Stablecoin Issuer Gets Green Light, FTX Clients Sue Hedge Fund: Law Decoded
The Central Bank of the United Arab Emirates (CBAE) has granted in-principle approval to AED Stablecoin under the Payment Token Services Regulation Framework.
The pre-licensing of AED Stablecoin puts it at the forefront of the race to become the first issuer of a regulated dirham-peg stablecoin in the UAE.
This development eases concerns about potential restrictions on crypto payments raised after the CBUAE recently announced its licensing framework, which bans crypto for payments unless it includes a licensed dirham-peg token.
If fully accepted, AED Stablecoin's AE Coin could serve as a local trading pair for cryptocurrency exchanges and decentralized platforms, allowing traders to accept it for goods and services.
The Dubai Crypto Regulator will take action against unlicensed firms
Dubai's crypto regulator has launched a crackdown on unregulated crypto firms and companies for violating its trading rules.
On October 9, the Dubai Virtual Assets Regulatory Authority (VARA) issued fines and cease-and-desist orders to seven businesses for violating trading regulations and operating without necessary licenses.
Vara said it is conducting further investigations in cooperation with other local authorities. The regulator did not specify which companies received the penalty.
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FTX user sues hedge fund over profit loss
An FTX client is suing stock fund Olympus Peak, alleging that it is owed additional recovery after the firm sold its claims on the collapsed trading platform.
Nicholas Gierszyk, an FTX beneficiary from California, is reportedly suing hedge fund Olympus Peak, claiming the company could make more than $1 million from their deal. Girczyk said the hedge fund did not honor the additional recovery rights negotiated in their agreement.
According to a Bloomberg report, Giersik sold FTX to a hedge fund for $930,000, receiving a 42% discount to its $1.59 million asking price. However, if FTX's reorganization plan is approved, customers are now expected to receive between 129% and 146% of their claims.
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FTX investors have dropped a lawsuit against Sullivan and Cromwell
FTX investors have voluntarily dismissed a class-action lawsuit against US law firm Sullivan & Cromwell (S&C).
On February 16, a group of FTX creditors sued the law firm, alleging that it played a role in FTX's multibillion-dollar fraud and that the company took advantage of it. The lawsuit seeks damages for civil conspiracy, aiding and abetting fiduciary fraud and aiding and abetting fraud.
S&C has served as outside counsel to FTX in various deals and oversees FTX's bankruptcy proceedings.
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