Tether sued over frozen ‘pig butcher’ coins, 6,600 students get crypto loans: Asia Express

Two Thai businessmen who don’t dispute involvement with a pig butchering scam sue Tether over frozen funds, thousands of Asia students access crypto loans. Asia Express.

• Thai businessmen are suing Tether for freezing $42.4 million in USDT, alleging illegal seizure related to a 'pig butchering' scam.
• Thailand is implementing stricter AML regulations, including the Travel Rule for crypto transfers and considering retail access to overseas crypto derivatives.
• Pencil Finance has facilitated a $1 million on-chain student loan cycle for 6,600 underserved students in Southeast Asia, marking a significant step in blockchain-based lending.

Topics: Jurisdictions, Legal regulatory, Integration with defi, Cross jurisdictional policy, Securities law classification, Rwa collateral lending

Tags: #tether #usdt #pigbutcheringscam #cryptoloans #thailand #aml #travelrule #pencilfinance #southeastasia #tokenization

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What Are Crypto Loans And How Do They Work?

The crypto lending market surged to $73.6B after the 2022 collapse, but liquidation risk and platform failures still threaten borrowers.

• Crypto loans allow users to borrow stablecoins or fiat against their digital assets without selling, offering tax advantages and continued exposure to potential price gains.
• The market is divided between centralized (CeFi) and decentralized (DeFi) platforms, with DeFi now dominating lending activity, though both face risks like liquidation and platform failures.
• Key risks include liquidation due to price volatility, counterparty risk in CeFi, smart contract vulnerabilities in DeFi, and the absence of government insurance, emphasizing the borrower's responsibility for risk management.

Topics: Institutional adoption, Integration with defi, Asset types, Asset manager initiatives, Rwa collateral lending, Stablecoins digital cash, Financial instruments

Tags: #cryptoloans #defi #cefi #collateral #liquidationrisk #stablecoins #aave #nexo #taxefficiency #overcollateralization

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