Issue #9 : Wars & Implosions
Welcome to OIA's final edition for 2022!
Christmas & 2023 is just around the corner. Can you believe it?! 🤩
But before that, lets get to the last set of 🌶 legal headlines for 2022:
China: China filed a WTO suit to challenge new US restrictions on semiconductors & other hi-tech exports to Chinese companies (details below)
South Korea: The Seoul Central District Court dismissed an injunction filed by a local blockchain game company to stop 4 local digital asset exchanges from delisting its native WEMIX cryptocurrency (details below)
See you on 9 January 2023!
Ling Yah
P/S: We've started covering some interesting law seminars in OIA, e.g. on insurance disputes & international arbitration. If you know of any interesting seminars happening in 2023, do drop us a note at editor@overheard.asia. We'd love to feature them on our page.
The Danger of Tokens
Ah, tokens.
It kickstarted the whole SBF debacle thanks to CZ's selling of FTT tokens. Whereas in South Korea, it's stirring up a different kind of trouble.
Background
Digital Asset eXchange Alliance (DAXA) is a trade group that represents Korea's 5 crypto exchanges: Upbit, Bithumb, Coinone, Korbit and Gopax.
Wemade Co is a South Korean blockchain game maker with a native cryptocurrency known as Wemix.
When DAXA decided to stop listing Wemix, Wemade filed injunctions against the exchanges.
The injunctions were dismissed by a Seoul court on 7 December.
On 8 December, DAXA stopped trading Wemix coins. But owners can still withdraw their money a month after trading ends.
What's Next?
Wemade has filed an immediate appeal against the Court's 7 December decision.
(Under South Korean law, an immediate appeal allows a complaint to be filed to a lower court within a week from a court decision.)
That Said...
With the removal of Wemix tokens:
Wemade's shares and cryptocurrency values have plunged;
Wemix is now listed on GDAC, another local crypto exchange that only services token-to-token transactions;
Wemade will buyback & burn USD 10 million worth of WEMIX to try and salvage the token's value.
Goliath v Goliath
Shots have been fired.
The technology war everyone saw coming is here, pushing the WTO to the forefront.
ICYMI
In October, the US passed regulations aimed at kneecapping China's semiconductor industry. Over 1000 Chinese companies were listed in American export controls and sanctions.
Now
China has filed a WTO suit to challenge said US restrictions on semiconductors & other hi-tech exports to Chinese companies.
China accuses the US of "trade protectionism" in trying to curb the export of chip products on national security grounds.
And let's face it - who knows what "national security" really means & how far it covers?
What's next?
The US has 60 days to enter consultations.
Should consultations fail, Beijing can ask for a WTO panel to be established - 45 days for appointments and 6 months for the panel to conclude.
Fall From Grace
Sour relationships can get very ugly, especially where money is involved.
In this case, we’re talking about BharatPe’s, a Delhi-based fintech unicorn, current tiff with its co-founder and former MD, Ashneer Grover.
Grover and his family allegedly created fake bills, overcharged for recruitment and enlisted fake vendors to provide services to the company.
In February 2022, Grover failed in a SIAC arbitration suit to shut down BharatPe’s probe, with the emergency arbitrator stating that there was no grounds to stop governance review at the fintech platform.
Days after the ruling, Grover was sacked from all posts at BharatPe.
⚔️ 3-Pronged Attack
BharatPe is now going after Grover from 3 angles.
A civil case in the Delhi High Court to claw back Rs 88.6 crore (~USD 11 million)
A criminal complaint filed with the Economic Offences Wing
A SIAC arbitration to restrict Grover’s 1.4% unvested stock and strip away his founder title.
Quite the fall for someone who once spearheaded a fintech unicorn. 😳
Spotlight - Ruth Stackpool-Moore
(Investment Manager, Omni Bridgeway)
⚒️ What do you do?
I am an Investment Manager with global third party funder Omni Bridgeway, based in Singapore. I assess funding opportunities & manage funded cases in both litigation and arbitration (commercial and investor-state) throughout APAC.
I'm currently working on a number of SIAC arbitrations, an ICSID case and the first funded high court litigation in Singapore.
As far as funded cases are concerned, my role typically involves working with our client to keep an eye on budgetary & procedural efficiencies and provide high level strategic insight to the lawyers instructed on the case.
🏆 What is your proudest professional achievement?
Having been involved in third party funding in Asia for over 7 years, I am proud to have been at the forefront of the development of third party funding as an industry in Asia and helping to facilitate its acceptance as a financing tool for disputes in this region.
In terms of individual cases, my proudest moment so far has been helping a long standing and very deserving client attain justice against a better funded and more aggressive opponent, whose only answer to the meritorious claim against them was to try and bankrupt our client.
A true David and Goliath story.
Having fought extremely hard under its own steam for 8 years and having exhausted practically all its available resources, it has been extremely satisfying to be able to step in and help secure first instance victory for our client, in what is hopefully the first step in making it whole for the damages it has suffered. 💪🏻
⌛ There are now 25 hours in a day! How do you spend your extra hour?
I really want to learn to surf 🌊, and given how bad I’ve been on previous attempts, it may well take an extra hour a day for a very long time for me to ever be able to do that.
The lack of beaches with waves in Singapore probably won’t help my cause!
🚀 If you weren't a lawyer, what would you do?
I’d be a sailor.
When I moved out to Asia ten years or so ago now with my husband, we definitely took the road less travelled.
After a wonderful 18 months sailing together, I can definitely say we had seen the best of what non-working life has to offer. A return to the ocean features very highly in our retirement plans. ⛵️
😋 Your favourite food haunt (bonus points if it's off the beaten track!)
I recently went to East Bistro, run by Lei Garden’s former head Chef Tony Wong. The food was delicious, in particular the 螃蟹脆米泡饭/米粉 (crab with crispy rice and soup).
Noted: This interview has been edited for clarity & length.
Food Feature
Today we've got one of the best apple strudels you'll find... from Klang!
Klang is most known for its bak kut teh, but far less known is that it's home to one of the best apple strudels you'll find in Peninsula Malaysia. They sell by the loaf and are available only for takeaways.
You can get it in Kuala Lumpur itself too - provided you submit your preorders online first!
Details: Website, Google Maps
Are you a student or young lawyer?
Want to get involved in helping to run Overheard? Meet senior practitioners? Do legal research with real world impact?
We're always looking for bright, young talent like yourself so if you're interested, give us a holler at editor@overheard.asia!
Special thanks to Overheard in Asia's sponsor:
David Grief was described as "the Law's Middleman" (Business Times, 2021). You can reach out to him at dg@davidgrief.com if you need help identifying the right lawyer, arbitrator or expert for your matters, or even if you just want to grab a drink 🍵🍺 with someone who has managed and mentored lawyers for almost 5️⃣0️⃣ years!