In today’s cryptocurrency news, several significant developments are influencing digital finance dynamics globally. Indian cryptocurrency exchange WazirX is in the process of recovery following a massive $235 million cyberattack. Targeted by the infamous Lazarus Group from North Korea, the company has initiated a restructuring strategy under the Singapore legal framework to compensate affected users. By filing for moratorium with the Singapore High Court, WazirX proposed a Scheme of Arrangement to realign its debts and liabilities. This plan includes distributing recovery tokens to users, which could offer returns powered by future platform operations and recovered assets. The strategy aims to address the claims amounting to $546.5 million USDT while WazirX holds liquid assets of $566.4 million USDT. Founder’s focus remains on restoring user trust and ensuring their compensation.
Meanwhile, in the United Kingdom, the Treasury has moved to amend existing laws, clarifying that crypto staking for blockchain systems such as Ethereum and Solana is not classified as a “collective investment scheme.” This amendment offers a sigh of relief to proof-of-stake blockchains, previously under potential regulatory scrutiny as these arrangements now stand outside stringent regulatory definitions. The law’s update is set to take effect at the end of January 2025.
In related developments, stablecoin issuer Circle has made a contentious move by donating $1 million worth of USDC to the inauguration committee of U.S. President-elect Donald Trump. Circle’s CEO Jeremy Allaire highlighted the acceptance of USDC as a testament to the growing acceptance of digital currencies, underscoring a shift in financial systems. Circle’s USDC is the second-largest stablecoin and plays a significant role amidst rising legislative focus, as evidenced by the proposed Lummis-Gillibrand Payment Stablecoin Act.
These actions are part of a broader narrative reflecting cryptocurrencies’ growing influence and the evolving regulatory landscape across global financial markets.
