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first_img Monument Bank delays retail tokenized deposits due to regulatory issues in the UK

According to CoinDesk, London challenger bank Monument Bank has postponed its £250 million (approximately $330 million) project to tokenize UK retail bank deposits for several months, as the bank has been unable to find a local crypto custodian that meets the Financial Conduct Authority (FCA) standards and can handle zero-knowledge privacy proofs.Mintoo Bhandari, founder of Monument Bank, stated that the bank originally planned to tokenize customer deposits on the privacy public chain Midnight, hoping to launch the world's first tokenized deposits two months ago, but it is now expected to take another two months, with a retail customer launch in November. To meet regulatory requirements, the bank expanded its search for custodial partners to overseas, ultimately finding a Canadian custodian approved by the FCA.Midnight is a privacy-first Layer 1 blockchain project funded by Charles Hoskinson, which keeps customer information within the Monument system through zero-knowledge proofs while allowing the bank to prove compliance on-chain and provide audit records to regulators. Monument Bank announced the project in March this year, planning to offer tokenized private equity, structured products, and automated Lombard loans to "mass affluent" customers with investable assets ranging from £50,000 to £5 million.Bhandari stated that customer deposits will continue to earn interest, fully backed by Monument, and can be exchanged at a 1:1 ratio for pounds, protected by the Financial Services Compensation Scheme (FSCS), with a limit of £120,000 per person or company.

first_img Bitcoin Bancorp acquired the bankrupt Bitcoin Depot for $620,000, including 2,547 ATMs

According to CoinDesk, after the bankruptcy of Bitcoin ATM operator Bitcoin Depot, about a quarter of its more than 9,200 self-service terminals have been sold. The publicly traded digital asset infrastructure company Bitcoin Bancorp (BCBC) won 2,547 of these ATMs for $620,750 and additionally paid $110,500 to acquire related site agreements, intellectual property, trademarks, patents, and the BitcoinDepot.com domain name.Bitcoin Depot filed for Chapter 11 bankruptcy protection in May of this year, after its first-quarter revenue fell 49% year-over-year, with profits turning from a $12.2 million gain to a $9.5 million loss. In its last complete financial report before bankruptcy (fourth quarter of 2025), the company valued all properties and equipment (of which 98% were self-service terminals) at over $26 million.Bitcoin Bancorp, headquartered in Las Vegas and formerly known as Bullet Blockchain, trades at $0.04 on the OTC Markets, with a market capitalization of about $18.5 million, far below Bitcoin Depot's peak of about $400 million when it was listed on Nasdaq. The company stated that the remaining deliveries are expected to be completed in the next quarter. Data shows that losses from crypto ATM scams reached $389 million in 2025, a year-on-year increase of 58%. The UK's FCA has announced that crypto ATMs are illegal, and regulators in countries such as Australia and Canada have also intensified their crackdowns.

Former Deputy Governor of the Bank of England Jon Cunliffe has joined blockchain payment company Fnality and serves as the Chairman of the UK entity

According to Bloomberg, Jon Cunliffe, the former Deputy Governor for Financial Stability of the Bank of England, has joined the blockchain payment company Fnality and will serve as the Chairman of its UK entity. Jochen Metzger, the former Director General for Payment and Settlement Systems of the German central bank, has been appointed as a member of the Supervisory Board of Fnality Europe and is expected to serve as its Chairman; Ron Berndsen, the former Head of Supervision and Head of Market Infrastructure Policy at the Dutch central bank, will also join the Supervisory Board.Fnality operates a wholesale payment system that allows banks to settle debts using central bank currency balances. Its pound sterling system, regulated by the Bank of England, went live in 2023 and is currently seeking regulatory approval to launch versions in US dollars and euros. Fnality states that the system is designed to support the tokenized trading of traditional assets such as stocks and bonds, enabling the synchronized flow of securities and payment funds across interconnected digital networks, thereby shortening settlement times and supporting round-the-clock trading. Fnality was established in 2019, with investors including major financial institutions such as Goldman Sachs, UBS Group, Santander Bank, Bank of America, and Citigroup.

The U.S. Department of Justice cracks down on the Xinbi scam service market, seizing $52 million in cryptocurrency assets

According to a notice from the U.S. Department of Justice, the Department's Fraud Center Strike Force, in coordination with the Department of the Treasury, took coordinated law enforcement action against Xinbi Guarantee, seizing and restricting the disposal of over 52 million dollars in cryptocurrency in a single day, bringing the total assets restricted by the task force to approximately 938 million dollars. Tether provided proactive assistance in this investigation.The Department of Justice alleges that Xinbi is an illegal scam service market primarily operating through Telegram, providing customized investment scam websites, money laundering services, and recruiting victims of human trafficking to work in scam parks in Southeast Asia. Law enforcement has seized its Telegram channel and two cryptocurrency wallets holding approximately 12 million dollars, and restricted the disposal of an additional 47 related wallets.At the same time, the U.S. Department of the Treasury's Office of Foreign Assets Control designated Xinbi as a significant transnational criminal organization and sanctioned two additional entities that support it. The task force also assisted Madagascar in shutting down 13 scam parks operated by Chinese criminal groups, processing over 3,200 electronic devices, and local authorities arrested nearly 400 people.
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