• The FINTOCH platform falsely claimed ties to Morgan Stanley and promised 1% daily returns.
• Investigators found $31.6 million in USDT moved across Binance Smart Chain, Tron, and Ethereum.
• Liang lived alone in a luxury Bangkok home, where police found an illegal firearm.

Thai and Chinese authorities have arrested a Chinese national in Bangkok linked to one of the largest decentralised finance scams of 2023.

The suspect, identified as Liang Ai-Bing, was detained over his alleged role in a cryptocurrency Ponzi scheme that defrauded nearly 100 investors of more than $31 million.

The case, involving the FINTOCH platform, as per a BeInCrypto report, exposes how cross-border coordination and blockchain analysis are reshaping global efforts to combat crypto-related crimes.

Inside the FINTOCH scam

Liang Ai-Bing was arrested on Wednesday in an upscale Bangkok neighbourhood after a coordinated intelligence operation between Thai and Chinese authorities.

The FINTOCH platform, also known as Morgan DF Fintoch, operated between December 2022 and May 2023, falsely marketing itself as a legitimate decentralised finance project.

It claimed to be affiliated with global investment bank Morgan Stanley — an association that Morgan Stanley publicly denied in 2023.

The fraudulent platform promised investors daily returns of 1% and presented a fictional chief executive named Bob Lambert, whose photo turned out to be that of an American actor, Mike Provenzano.

The Monetary Authority of Singapore had already issued a warning about the platform in early May 2023, weeks before it vanished with millions in investor funds.

Investigators later revealed the scam was orchestrated by five individuals, including Liang.

The other suspects were identified as Ai Qing-Hua, Wu Jiang-Yan, Tang Zhen-Que, and Zuo Lai-Jun.

While Zuo was detained in China and later released on bail, the remaining suspects fled across borders after the exit scam in May 2023.

Blockchain trail and digital evidence

On-chain investigator ZachXBT first exposed the scam in May 2023, tracking suspicious fund movements across multiple blockchains.

His research found that the FINTOCH team withdrew $31.6 million in USDT from Binance Smart Chain and later transferred it through the Tron and Ethereum networks.

Victims soon discovered they could no longer access their accounts or withdraw funds.

Data from Immunefi, a crypto bug bounty platform, showed that the FINTOCH case contributed to a 63% rise in cryptocurrency-related losses in the second quarter of 2023 compared to the same period the previous year.

When Liang was arrested, authorities found he had been living alone in a rented three-storey property in Bangkok’s Wang Thonglang district since late 2023.

The monthly rent for the residence was approximately $4,645.

During the search, police also seized an illegal firearm, leading to additional charges for unlawful entry and possession of a weapon.

Cross-border enforcement and extradition

The FINTOCH investigation has highlighted the growing complexity of prosecuting cryptocurrency crimes that transcend national borders.

Thai police worked closely with Chinese authorities to trace Liang’s movements after he fled mainland China, frequently shifting locations to avoid capture.

Discussions are underway to extradite him to China, where he will face fraud charges.

The case has also renewed attention on regulatory gaps surrounding decentralised finance platforms.

Unlike traditional financial institutions, DeFi projects often operate across multiple jurisdictions without clear oversight.

This enables bad actors to exploit legal loopholes and evade accountability.

Authorities in other countries are also cracking down on similar scams.

In October 2025, US officials announced they were seeking to seize 127,271 BTC — valued at over $14.2 billion — from Chen Zhi, founder of Cambodia-based Prince Holding Group.

The case involved “pig butchering” scams, where victims were coerced into fraudulent crypto investments under threat or manipulation.

The FINTOCH case underscores both the potential and the limitations of blockchain transparency.

While transaction records helped investigators track stolen assets, the speed of execution and lack of immediate regulation continue to make recovery difficult.

The nearly two-year gap between the May 2023 scam and Liang’s October 2025 arrest illustrates how international cooperation and forensic blockchain analysis are becoming essential in tackling DeFi-related crimes.

The post How a Bangkok arrest cracked open the $31 million FINTOCH crypto fraud appeared first on CoinJournal.

• Chairman Kelvin Wong warns of inflated DAT share prices.
• Boyaa Interactive and Ourgame International among affected firms.
• India and Australia also move to curb crypto-heavy listings.

Hong Kong’s Securities and Futures Commission (SFC) has intensified its scrutiny of listed firms with digital asset treasuries (DATs) after findings suggested retail investors may have lost billions trading these stocks.

The regulator is concerned that share prices of some companies may be trading well above the value of their crypto holdings, raising questions about investor protection and market transparency.

The move comes amid growing global unease over corporate exposure to digital assets, with regulators in Hong Kong, India, and Australia tightening oversight of firms integrating crypto into their balance sheets.

SFC flags risk of inflated share valuations

SFC chairman Kelvin Wong Tin-yau said the regulator is closely monitoring how listed firms manage their crypto assets, as some share prices may not reflect the true value of their holdings.

Wong pointed to examples from the United States where companies with digital asset exposure saw valuations soar to more than double the cost of their crypto portfolios.

Findings from Singapore-based 10X Research earlier this month indicated that retail investors may have collectively lost around $17 billion trading digital asset treasury firms.

Many of these losses stemmed from investors purchasing shares at a premium far above the company’s net asset value.

Some of Hong Kong’s most active DAT firms, including Boyaa Interactive and Ourgame International, have seen their stock performance weaken amid the crypto market’s volatility.

The SFC’s growing concern reflects a broader effort to assess whether such firms pose risks to financial stability, particularly when share prices are driven more by speculative demand than by operational performance.

Regulators move against rebranding attempts

Authorities in Hong Kong have already taken measures against companies attempting to rebrand themselves as crypto-holding entities without substantial business operations.

The SFC cited listing rules that limit firms from maintaining excessive liquid assets, including cryptocurrencies, on their balance sheets without demonstrating a clear operational rationale.

Wong stated that investors should “fully understand the underlying risks of DAT,” adding that the commission plans to expand its public education campaigns to help retail traders understand how digital asset treasuries function and the market volatility they may face.

Once its review is complete, the SFC will determine whether specific guidelines are required for DATs, as Hong Kong currently lacks a framework governing listed companies investing directly in cryptocurrencies.

Global caution spreads across markets

Regulatory caution is not limited to Hong Kong. Earlier this month, similar developments emerged in India and Australia, where exchanges raised concerns about listed firms shifting large portions of their capital into crypto holdings.

In Australia, the Australian Securities Exchange (ASX) restricts listed firms from holding more than 50% of their assets in cash or cash-like instruments, a rule that complicates attempts to build crypto-heavy balance sheets.

In India, the Bombay Stock Exchange recently rejected a listing proposal from Jetking Infotrain due to its plans to allocate funds toward digital assets.

Across jurisdictions, regulators are increasingly aligning on the need for clearer oversight of corporate crypto exposure.

Industry concerns over unsustainable models

Experts within the crypto industry have expressed concern that many DAT companies operate without robust governance structures or defined risk controls.

Without clear strategies for managing asset volatility or liquidity shocks, retail investors could face sharp losses during market downturns.

While digital asset treasuries offer firms a new way to diversify holdings, regulators argue that such moves must be backed by sound business fundamentals rather than speculative enthusiasm.

The SFC’s review marks an important step in defining how listed companies can responsibly integrate crypto into their financial strategies without endangering shareholders.

The post Hong Kong’s SFC reviews digital asset treasuries as investor losses mount appeared first on CoinJournal.

• Crypto firms offering financial products must obtain an AFSL by 30 June.
• Bitcoin and NFTs are said to be excluded from the financial product category.
• The Treasury has finished consultations on new crypto legislation.

Australia has tightened its regulatory framework for digital assets, introducing updated guidelines that define how crypto service providers will be classified and licensed.

The Australian Securities and Investments Commission (ASIC) announced revisions to its Information Sheet 225.

Firms offering services tied to financial products will now need to apply for an Australian Financial Services License (AFSL) and join the Australian Financial Complaints Authority by June 30.

The updated document aims to streamline compliance requirements, strengthen investor protection, and bring digital asset providers under the same regulatory standards as traditional financial institutions.

This marks a significant shift in Australia’s approach to overseeing crypto-related businesses and ensuring greater market transparency.

The move aims to bring greater oversight to the rapidly evolving crypto industry while maintaining flexibility for tokens like Bitcoin, which will not be treated as financial products under the new guidance.

Bitcoin excluded, but stablecoins under scrutiny

Under the revised guidelines, ASIC clarified that cryptocurrencies such as Bitcoin, gaming non-fungible tokens (NFTs), and tokenised event tickets do not fall under the financial product category.

However, stablecoins, wrapped tokens, tokenised securities, and yield-bearing products like staking services and tokenised real estate will require licensing.

ASIC also confirmed in-principle regulatory relief for stablecoin and wrapped token distributors to help transition into compliance ahead of broader legislative reforms.

The updated framework outlines that services offering financial returns or lock-up periods will be classified as financial products, ensuring investors in yield-based assets are protected under existing finance laws.

Industry welcomes clarity but warns of implementation challenges

The update has been broadly welcomed across the blockchain sector for providing long-awaited clarity.

Industry groups and legal experts said the move provides visibility on ASIC’s approach to regulating the digital asset ecosystem.

However, they warned that the transition could create logistical hurdles due to limited local expertise, banking restrictions, and insurance access.

Blockchain APAC’s CEO noted that ASIC’s approach of implementing policy ahead of final legislation brings short-term certainty but also leaves room for interpretation.

These “structural bottlenecks,” including resource and compliance constraints, could shift risks from legal to operational levels if not addressed promptly.

Transition underway as crypto firms prepare for licensing

Industry players are now restructuring their operations to align with the new rules.

The Digital Economy Council of Australia called the update a significant step toward mainstream regulation but expressed concern about ASIC’s capacity to process a large volume of licensing applications in time.

The move follows the Albanese government’s proposal in March for a unified framework that places crypto exchanges under existing financial services laws.

The Treasury concluded consultations last week on draft legislation that would formalise this transition, further aligning Australia’s crypto oversight with global regulatory trends.

The update marks a turning point for Australia’s digital asset market, setting a roadmap for compliance while signalling the government’s intention to balance innovation with investor protection.

The post Australia tightens crypto rules: check out all the details appeared first on CoinJournal.

• Mt. Gox extends Bitcoin repayment deadline to Oct 2026 amid ongoing administrative hurdles.
• Once the top Bitcoin exchange, Mt. Gox’s collapse in 2014 led to the loss of 850,000 BTC.
• Arkham data shows holdings now down 75% to 34,690 BTC.

Mt. Gox, once the world’s largest Bitcoin exchange, has delayed repayments to its creditors until October 2026 — extending a saga that began more than a decade ago.

The announcement, made just days before its previous deadline of October 31, 2025, reflects ongoing administrative and technical challenges in finalising payments.

While many creditors who submitted paperwork have received partial repayments, a significant number are still waiting for their funds.

The Tokyo District Court approved the extension after the trustee cited the need for additional time to process remaining claims and complete settlements efficiently.

Delayed Bitcoin repayments extended to 2026

According to the latest notice, the Mt. Gox rehabilitation trustee confirmed that most base, early lump-sum, and intermediate repayments have been processed for creditors who completed the required steps.

However, repayments for others remain pending.

The trustee explained that it was “desirable to make the repayments to such rehabilitation creditors to the extent reasonably practicable,” leading the court to approve a new deadline of October 31, 2026.

This marks another chapter in one of the cryptocurrency industry’s longest-running recovery efforts.

Mt. Gox, which once handled over 70% of the world’s Bitcoin trading volume, collapsed in 2014 after a massive hack led to the loss of approximately 850,000 BTC.

The company subsequently filed for bankruptcy in Japan.

How the Mt. Gox collapse reshaped Bitcoin history

When Mt. Gox failed, the exchange’s bankruptcy shook investor confidence in digital assets and exposed vulnerabilities in early crypto infrastructure.

About 200,000 BTC were later recovered, but 650,000 BTC remain missing.

The recovery process transitioned into a court-supervised civil rehabilitation in Japan, during which a trustee began redistributing recovered Bitcoin and Bitcoin Cash (BCH) in 2024.

At the time of its collapse, Mt. Gox’s influence was unmatched.

The incident not only caused a sharp decline in Bitcoin prices but also prompted tighter regulatory oversight in key markets.

In the years since, it has become a landmark case in crypto regulation, bankruptcy law, and investor protection — shaping how global exchanges handle custody and insurance.

Market impact and sell-off concerns

With repayments scheduled to continue into 2026, traders and analysts have debated whether the eventual release of thousands of Bitcoin could trigger selling pressure.

Historically, such fears have surfaced each time Mt. Gox announced repayment progress.

However, recent on-chain data suggests that these effects may be limited.

According to Arkham Intelligence, Mt. Gox currently holds 34,690 BTC worth nearly $4 billion, down from about 142,000 BTC in mid-2024 — a decline of more than 75%.

Analysts tracking these wallets have noted that even large movements from the exchange have had only short-term effects on Bitcoin’s market price, indicating that most creditors are choosing to hold rather than sell immediately.

What’s next for creditors and the crypto market

The trustee’s revised timeline means that full repayments could now take another year, extending the wait for thousands of claimants worldwide.

For many early Bitcoin investors, the repayments represent not only financial recovery but also closure on one of crypto’s most notorious events.

Still, the Mt. Gox story continues to serve as a cautionary tale for digital asset investors.

It underscores the importance of secure custody, transparent operations, and regulatory compliance — principles that have since become standard practice across global crypto exchanges.

The post Mt. Gox delays Bitcoin repayments again as creditors await full settlement appeared first on CoinJournal.