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Our weekly roundup of news from East Asia curates the industry’s most important developments.

Bitmain allegedly fired staff after salary complaints

Bitcoin application-specific integrated circuit (ASIC) mining manufacturer Bitmain has allegedly fired three of its employees for speaking to the media regarding the withholding of salary payments by their employer. 

According to local news reports on Oct. 17, citing an alleged internal Bitmain memo, the company accused three staff members of breaching various clauses in their employment contracts for sharing their remuneration on social media platforms. The note reads: 

“The EMT [Executive Management Team] has decided: (1) Employee Li of product operations and circuit development, is to be fired immediately and blacklisted. (2) Employee Xie of product operations and circuit development, is to be fired immediately and blacklisted. (3) Employee Ding, administrative intern at strategic development PMT, is to be fired immediately and blacklisted. The intern’s post-secondary institution shall also be informed of the incident.”

“In addition, the company reserves the right to pursue legal action against the individuals above,” Bitmain allegedly wrote. “Without authorization by the company, nothing can be said, nothing can be given [to outsiders!]”

Bitmain’s alleged layoff notice (BlockBeats)

On Oct. 9, Cointelegraph reported that Bitmain allegedly paused September salary payments for its staff members as the company “has yet to achieve a net positive cash flow, especially in the orders of [new] ASICs.” In addition, employees allegedly face a 50% cut to their base salary, with all bonuses and incentives being removed. 

Founded in Beijing, China in 2013, Bitmain is one of the world’s largest Bitcoin mining ASIC manufacturers, with an estimated 70% market share during the previous bull market that ended in 2021. The firm’s Antminer ASIC series currently leads the industry in terms of hash rate computations for mining Bitcoin. Over the past year, several Bitcoin mining operators have gone bankrupt as the price of Bitcoin plunged while electricity costs surged. 



Hong Kong investors spooked by JPEX scandal 

Despite efforts to regulate the sector, it appears that some Hong Kong residents have lost their confidence in crypto after the largest Ponzi scheme in the city’s history, the $175 million JPEX crypto exchange scandal, unfolded last month. 

According to a new study published by the HKUST Business School Central on Oct. 17, 41% of Hong Kong residents are no longer interested in holding crypto assets, a sharp rise of 12% compared to before the JPEX incident. The survey featured 7,900 respondents and was conducted between April and October. 

JPEX booth advertisement posted the day before the exchange was raided by police. (Facebook)
JPEX booth advertisement posted the day before the exchange was raided by police. (Facebook)

The study also revealed that 84% of Hong Kongers have heard of crypto, with 27% of respondents claiming they either hold digital assets now or were previously crypto investors. For those investing in crypto, over 80% said they would not invest over 50,000 Hong Kong dollars ($6,390) into the sector. Interestingly, 57% of respondents said they understood that crypto exchanges must obtain a license before operating in Hong Kong, an increase of 15% compared to before the JPEX scandal unraveled. 

Wu Huang, a professor at HKUST Business School Central, commented: 

“We hope that the results of this survey can provide industry stakeholders with more perspectives to help build a sound virtual asset industry. As virtual assets play an increasingly important role in the digital economy, there is a need to strengthen education efforts to make the public better Understand the risks and potential of this emerging field.”

Last month, JPEX staff fled their corporate booth at Singapore’s Token2049 event after the Hong Kong Securities and Futures Commission issued a warning regarding the exchange’s unregulated activities. Subsequently, Hong Kong police arrested more than 10 corporate executives and influencers connected to the exchange on charges of fraud. The JPEX scandal has since grown to over 2,300 victims, with losses estimated at $175 million. The exchange was unlicensed at the time of the incident. 

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“Factually inaccurate” news report wipes out $54 million in market cap

When it comes to reporting, Cointelegraph has seen some blunders over the years. That said, fake news is a problem across the industry. 

On Oct. 16, Bloomberg reported that BC Technology Group, owner of licensed Hong Kong crypto exchange OSL, is contemplating the sale of the latter for 1 billion Hong Kong dollars ($128 million).

On Oct. 17, BC Technology Group issued a clarification stating: “The Board wishes to clarify that the contents and statements in the [Bloomberg] Article are factually inaccurate and highly misleading” and that it was not contemplating a sale of OSL. 

Unfortunately, investors who bought BC Technology stock based on the divestiture euphoria were not so happy. After publishing the clarification statement, shares of BC Technology tanked 22% during the trading day, wiping off $54 million in market capitalization. “Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company,” management wrote. 

Bitget’s new crypto credit card

Joining the likes of its peers, cryptocurrency exchange Bitget is launching its own crypto-fiat credit card. According to an Oct. 16 announcement during the Future Blockchain Summit in Dubai, the Bitget Card, issued by Visa and backed by digital assets in users’ accounts and wallets, will be denominated in U.S. dollars and will be accepted in over 180 countries. 

Although many exchanges have rolled out their own crypto debit or credit cards, some have seen pushback from payment processors. On Aug. 25, Mastercard said it would end its cryptocurrency card partnership with Binance in Latin America. Although the firm did not cite a specific reason, experts have pointed to Binance’s recent regulatory scrutiny as the underlying cause. 

Zhiyuan Sun

Zhiyuan Sun is a journalist at Cointelegraph focusing on technology-related news. He has several years of experience writing for major financial media outlets such as The Motley Fool, Nasdaq.com and Seeking Alpha.

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Graham Linehan arrest: Met Police chief says officers ‘in impossible position and should not be policing culture war debates’

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Graham Linehan arrest: Met Police chief says officers 'in impossible position and should not be policing culture war debates'

Met Police Commissioner Sir Mark Rowley has said his officers should not be “policing toxic culture wars debates” as he responded to his force’s arrest of Father Ted writer Graham Linehan over anti-trans posts.

The UK’s top police officer said his officers are in an “impossible position”, adding that he has offered to provide suggestions to the Home Office about clarifying the law and policy.

“Greater clarity and common sense would enable us to limit the resources we dedicate to tackling online statements to those cases creating real threats in the real world,” he said.

Mr Rowley added that the Metropolitan police will be more selective about what social media posts it should investigate in future.

“We will be putting in place a more stringent triaging process to make sure only the most serious cases are taken forward in future – where there is a clear risk of harm or disorder.”

Sir Mark Rowley (left) has waded into the controversy surrounding online posts by Graham Linehan (right). File pic: PA
Image:
Sir Mark Rowley (left) has waded into the controversy surrounding online posts by Graham Linehan (right). File pic: PA

It comes hours after health secretary Wes Streeting told Sky News the government needs to look at whether police are “getting the balance right”.

Linehan, who also created the Black Books and The IT Crowd comedies, said on Tuesday he was arrested at Heathrow Airport over posts on X sharing his views on trans rights.

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The health secretary told Sky News Breakfast with Wilfred Frost that he can’t comment on the specifics of the case, as operational police decisions are “rightly independent of politicians”.

However, Mr Streeting said more generally that the government would rather see “police on the streets rather than policing tweets”.

The cabinet member added: “It’s the easiest thing in the world for people to criticise the police, but they are enforcing laws that parliament has passed and asked them to enforce.

“So if we haven’t got the balance right, as Parliament over successive governments, that is something that we need to look at because the Home Secretary is very clear about what her priorities are”.

He said that those priorities are neighbourhood policing and keeping borders safe.

Writing on Substack, Lineham said that after flying into the UK from Arizona, he was detained by five armed officers at Heathrow Airport and put in a cell before being questioned over posts published on X in April.

He added that officials became concerned for his health after taking his blood pressure, and he was taken to hospital.

The arrest has drawn criticism from opposition politicians.

Shadow justice secretary Robert Jenrick said the incident was “ridiculous and a complete waste of police time”.

Reform UK leader Nigel Farage said he would raise the case when he gives evidence to the House Judiciary Committee in Washington on free speech in the UK during a hearing on Wednesday, The Sun reported.

Nigel Farage will raise the case in Washington. Pic: PA
Image:
Nigel Farage will raise the case in Washington. Pic: PA

Read more from Sky News:
Cardi B cleared of assaulting security guard
The drug network exposed by Matthew Perry’s death

Harry Potter author JK Rowling, who has regularly shared her views on women’s rights in relation to transgender rights on social media, also waded into the row, posting on X: “What the f*** has the UK become? This is totalitarianism. Utterly deplorable.”

Sir Keir Starmer’s official spokesman said it was an operational matter for the police when asked about the arrest yesterday.

He added: “The prime minister and the home secretary have been clear about where their priorities for crime and policing are, and that’s tackling anti-social behaviour, shoplifting, street crime, as well as reducing serious violent crimes like knife crime and violence against women”.

Asked whether the government agreed with the Harry Potter author’s claim that the UK was now a “totalitarian” state, the spokesman said: “No.”

A Met Police spokeswoman confirmed an arrest was made at Heathrow Airport on Monday, but did not identify Linehan.

In a statement, the force said: “On Monday, 1 September at 1pm officers arrested a man at Heathrow Airport after he arrived on an inbound American Airlines flight.

“The man in his 50s was arrested on suspicion of inciting violence. This is in relation to posts on X.

“After being taken to police custody, officers became concerned for his health and he was taken to hospital. His condition is neither life-threatening nor life-changing.

“He has now been bailed pending further investigation.”

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OKX fined $2.6M in Netherlands for unlicensed operations ahead of MiCA rollout

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OKX fined .6M in Netherlands for unlicensed operations ahead of MiCA rollout

OKX fined .6M in Netherlands for unlicensed operations ahead of MiCA rollout

The Dutch National Bank fined OKX $2.6 million for operating in the Netherlands without registration before the EU’s MiCA rules took effect.

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Angela Rayner admits she should have paid more stamp duty on flat purchase – and considered resigning

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Angela Rayner admits she should have paid more stamp duty on flat purchase - and considered resigning

Angela Rayner has admitted she did not pay the right amount of stamp duty on the purchase of her second home and has referred herself to the independent adviser on ministerial standards. 

Speaking to Sky News’ political editor Beth Rigby on the Electoral Dysfunction podcast, the deputy prime minister became tearful as she claimed she received incorrect tax advice and spoke to her family about “packing it all in”.

Ms Rayner, who is also the housing secretary, has been under scrutiny after a report in The Daily Telegraph claimed she avoided £40,000 in stamp duty on a flat in Hove by removing her name from the deeds of another property in Greater Manchester.

In a lengthy statement released today, she said it was a “complex living arrangement” as her first home was sold to a trust following her divorce to provide stability for her teenage son, who has lifelong disabilities and is the sole beneficiary of the trust.

She said initial legal advice was that the standard rate of stamp duty applied but following media reports she sought expert counsel who said more tax is due.

She added that these matters were confidential but she applied to a court yesterday to get this lifted in the interests of public transparency.

In a subsequent interview with Beth Rigby, a visibly upset Ms Rayner said: “I’ve been in shock, really, because I thought I’d done everything properly, and I relied on the advice that I received and I’m devastated because I’ve always upheld the rules and always have felt proud to do that.

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“That it is devastating for me and the fact that the reason why those confidential clauses were in place was to protect my son, who, through no fault of his own, he’s vulnerable, he’s got this life changing, lifelong conditions and I don’t want him or anything to do with his day-to-day life, to be subjected to that level of scrutiny.”

Asked if she thought about quitting rather than disclose the details about her son, the cabinet minister added: “I spoke to my family about it. I spoke to my ex-husband, who has been an incredibly supportive person because he knows that all I’ve done is try and support my family and help them.”

PM backs Rayner

The statement dropped shortly before the first PMQs following the summer recess. Tory leader Kemi Badenoch said Sir Keir Starmer should fire his deputy.

“If he had backbone, he would sack her,” she said.

However Sir Keir defended Ms Rayner, saying he is “very proud to sit alongside” her.

“She has explained her personal circumstances in detail. She’s gone over and above in setting out the details, including yesterday afternoon asking a court to lift a confidentiality order in relation to her own son.”

He added: “I am very proud to sit alongside a deputy prime minister who is building 1.5m homes, who is bringing the biggest upgrade to workers rights in a generation, and has come from a working class background to become deputy prime minister of this country.”

Watch and listen to the full Electoral Dysfunction interview on Wednesday afternoon – www.podfollow.com/electoraldysfunction

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