Liminal Newsletter: November Edition

Just as we had expected last month, the market began correcting itself and some, but it was met with some rather stern incidents that put the brakes on everyone's candle. This month will definitely go into history as it took down two of the biggest names in Web3: Sam Bankman-Fried and CZ. Interestingly, the trend of spot ETFs continued, and we moved even closer to seeing another one approved and as always, the battle between legacy crypto exchanges and SEC continued with Kraken, this time under the radar. All in all, it was an active month. 

As for Liminal, we made some significant strides, from getting our ADGM In-Princple Approval to working with CBI to secure seized digital assets. We also onboard three new clients from different spheres of Web3. Extending to next month, we will be attending the ADGM Finance Week and also competing hard for the Hackernoon Startups Of The Year badge. 

Crypto Mogul Sam Bankman-Fried Convicted in Landmark Fraud Caser

In a landmark trial, Sam Bankman-Fried, the co-founder of the cryptocurrency exchange FTX, has been found guilty on all seven charges of fraud and money laundering. The verdict comes after a month-long trial in which prosecutors argued that Bankman-Fried had orchestrated a scheme to defraud investors of billions of dollars. The verdict is a major blow to the cryptocurrency industry, which scams and fraud have plagued in recent years. It is also a reminder of the risks of investing in cryptocurrency, which is a highly volatile and unregulated market.

BlackRock Files for Spot Ethereum ETF

Asset management giant BlackRock has officially filed for a spot ethereum exchange-traded fund (ETF), signaling its continued confidence in the cryptocurrency market. The iShares Ethereum Trust, which will be listed on Nasdaq if approved, will expose investors to ether, the second most popular cryptocurrency, without requiring them to own it directly. BlackRock's proposed spot ETF structure means the trust will hold actual ether tokens rather than futures contracts linked to the crypto asset. This move aligns with the firm's growing interest in digital assets and reflects the rising investor appetite for Ethereum-based investment vehicles.

SEC Sues Kraken Crypto Exchange

The U.S. Securities and Exchange Commission (SEC) has charged Kraken, one of the largest cryptocurrency exchanges, with operating as an unregistered securities exchange, broker, dealer, and clearing agency. The SEC alleges Kraken has been illegally offering and selling crypto asset securities since 2018 without registering with the agency. This has deprived investors of important protections, such as SEC inspections, recordkeeping requirements, and safeguards against conflicts of interest. Additionally, the SEC alleges that Kraken's business practices, deficient internal controls, and poor recordkeeping practices pose a range of risks to its customers.

Changpeng  'CZ' Zhao Steps Down From Binance.US Board

Following a settlement with the U.S. Department of Justice, Changpeng "CZ" Zhao, the founder of Binance, has stepped down as chairman of the board of Binance US, the exchange's U.S. affiliate. The settlement resolves allegations that Binance operated illegally in the U.S. without registering with the appropriate authorities. Binance has agreed to pay a $4.3 billion fine and make a "complete exit" from the U.S. as part of the settlement. While Binance US is not directly involved in the settlement, it still faces a separate enforcement action from the U.S. Securities and Exchange Commission over allegations that it offered unregistered securities to U.S. investors.

Alright, now, it's time to take a break from the news around the world and give you a sneak peek into what has happened at Liminal over the past month.

Liminal Secures In-Principle Approval for ADGM Custody License

Liminal has been granted in-principle approval for an ADGM custody license from the Financial Services Regulatory Authority (FSRA). This prestigious accreditation is a testament to Liminal's unwavering commitment to providing best-in-class custody solutions for the digital asset landscape. We had gone through rigorous due diligence, adherence to stringent conditional requirements, seamless platform integrations, and steadfast compliance with the highest regulatory and technological security standards. Liminal's in-principle approval is a resounding affirmation of its dedication to these principles and a clear indication of its aspirations to become the most reputable qualified custodian in the MENA region.

Read More: Media Announcement

Competing For Hackernoon Startups Of The Year

We have been fighting for a prestigious honour for several months now, and as we move into the last month of the year, it's time to put the gears in. HackerNoon Startups Of The Tear 2023 runs a competition entirely voted on by the community to determine the biggest project of the year in software, crypto, and the future of the internet. Show some love and vote Liminal for this year's startup of the year.

Vote Here

Liminal Partners with India's CBI to manage seized Digital Assets

Liminal made a significant impact in its first steps as a regulated custodian by partnering with India's Central Bureau of Investigation (CBI) to safeguard digital assets in two major crypto scams. We demonstrated our expertise in secure custody solutions as we assisted nation's premier investigating police agency, the CBI, in seizing and managing digital assets worth over $400 million. The partnership involved establishing multi-signature wallets, providing education on Web3 wallet operations, granting access to authorised team members, and ensuring asset security while maintaining wallet and key autonomy.

Catch the Coverage

Enabling Bitwyre Towards A Secure Electronic Trading Platform

Liminal has partnered with Bitwyre , a centralised crypto exchange in Indonesia, to provide secure and efficient digital asset management solutions. Liminal's wallet-as-a-service will power Bitwyre's exchange wallet, offering advanced governance configuration, robust automation workflows, updated compliance integrations, and secure firewall monitoring. This partnership will enable Bitwyre to streamline wallet operations and enhance user security.

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Securing Africa's Leading Crypto-Fiat Platform Scalex

Driven by our unwavering commitment to crafting secure, scalable, and sustainable solutions for capital-intensive investment platforms, we have partnered with Scalex, a leading ramp infrastructure for crypto and fiat. Scalex sought a more infrastructurally stable wallet solution that supports a wide range of chains and assets, leading them to our comprehensive wallet-as-a-service platform. Liminal's robust security, compliance, and automation integrations will streamline Scalex's user onboarding journey in Africa, enabling them to onboard 10 million Africans into Web3-driven solutions by 2030.

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Unlocking Safety in Fantasy Sports For TIAR

Expanding our reach to support new use cases, we have partnered with TIAR, a decentralised sports fantasy application, to integrate its institutional-grade wallet and custody solution. This collaboration will enhance TIAR's fan engagement platform by streamlining wallet operations, enabling policy customisation, distributing key wallet governance, reducing transaction costs, and ensuring compliance. Liminal's secure and efficient wallet infrastructure will simplify TIAR's platform, instil trust in users, and enable secure asset management.

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Team Liminal Attending ADGM Finance Week

Following our win in the custody market, we will be attending ADFinanceWeek (ADFW) from November 25 to December 3, 2023, to further our positioning as an accessible custodian in the MENA region. We are bringing our A-Team for the event. Meet Manan Vora, SVP of Strategy & Business Operations, Satya Venkata Chalapathi , VP- Risk and Mohammad Durrani , Business Development Director- MEA. Together, let's explore the exciting future of fintech in the region. Schedule a meeting today to discuss how Liminal can help you secure your digital assets.

Book your meeting here

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