Mayer Brown

November 11, 2022


The past week’s digital assets news was dominated by the sudden collapse of FTX and the waves it sent across digital assets markets. While our crystal ball can’t predict where the pieces will finally land—because it’s a snow globe and that would be crazy—some of the latest updates in this story (as of our publication time) are in our News Node below.

Beyond that, this Digital Assets Download contains lots of other developments from the digital assets worldbecause the breadth and potential of blockchain extends far beyond a single company or use case. Among other things, check out our Lead Block below for our animated compendium of digital assets terminology, potholes to avoid in metaverse real estate and virtual assets developments in Asia. We wrap things up with a very timely Learn the Lingo term.

For the Uninitiated: Digital Assets Download is a curated mix of insights and headlines that provide a Layer 3 Legal Perspective™ on the digital assets multiversecreated by Mayer Brown’s global Digital Assets, Blockchain & Cryptocurrency group. Check out all of our previous editions of the Digital Assets Download here.

Upcoming Production Schedule: After today’s release, our remaining 2022 issues will be published on December 2 and December 16. And our global team will continue to provide legal commentary and insights on events as they occur.

Use these links to share this edition of the Digital Assets Download via LinkedIn and Twitter.



Original Mayer Brown content, perspectives and insights from across our global platform that touch on digital assets, decentralized finance, cryptocurrencies and related fields.


Writings on the Wall, Translating ‘Crypto’ Terms with Mayer Brown

From Airdrop to Wrapped Token, our illustrated glossary, “Writings on the Wall, Translating Securities with Mayer Brown” has been updated with additional digital assets and cryptocurrency terms. Check out our “featured” list for the crypto terms and the full list of terms here.

Retail Investors in Hong Kong May Trade Virtual Asset Futures ETFs

On October 31, 2022, the Hong Kong Securities and Futures Commission (SFC) published a circular (SFC Circular) on virtual asset (VA) futures exchange traded funds (ETFs). The SFC Circular sets out certain additional requirements which the SFC would consider in connection with authorizing ETFs that provide exposure to VAs primarily through futures contracts eligible for public offering to retail investors in Hong Kong under sections 104 and 105 of the Securities and Futures Ordinance.

Brick by Brick: Understanding IP Rights – and Avoiding Potholes – in Metaverse Properties

Building a virtual world often involves just that—buildings. But developers of metaverse properties may not know which legal rights are at issue. Can a virtual world incorporate a rendition of a real-life building without infringing on the rights of real-life property owners? Does the architect, owner, or user of a brick-and-mortar building have any rights to assert against a twin building in the metaverse? How does the developer of a virtual building take the building from one virtual world to another? This Legal Update explores the answers, which depends on—and may vary based on—who is asserting the rights, whether copyrights or trademarks are at issue, and whether any of these rights have been assigned to another party.

Updates to Regulatory Approach to Digital Assets in Hong Kong and Singapore

Digital assets were the focus of various announcements issued during Hong Kong's and Singapore's respective Fintech Week events held in early November 2022. This Legal Update provides an overview of the key developments in the evolution of the current approach to the regulation of digital assets in both jurisdictions, in particular the definition of digital assets, evolution of the current regulatory framework in Hong Kong, evolution of the current regulatory framework in Singapore, and upcoming legislation and consultations in both jurisdictions.




A curated selection of headlines and news from around this multiverse—including deals, developments and other disruptions in DeFi.

Ongoing FTX Developments – A Brief History

Nov 2: Leaked FTX Balance Sheet Triggering Event

  • Divisions in Sam Bankman-Fried’s Crypto Empire Blur on His Trading Titan Alameda’s Balance Sheet. Read More >>

Nov 6: Binance Liquidates Its Holdings of FTX’s Native FTT Token

  • Binance CEO Tweets Announcement of FTT Liquidation. Read More >>

Nov 8: FTX and Binance (Briefly) Contemplate Acquisition of FTX

  • FTX Agrees to Sell Itself to Rival Binance Amid Liquidity Scare at Crypto Exchange. Read More >>

Nov 9: Twenty-Four Hours Later, the Deal Is Off

  • Crypto Chaos Continues as Binance Drops Bid to Buy Rival FTX. Read More >>
  • Binance Is Strongly Leaning Toward Scrapping FTX Rescue Takeover After First Glance at Books: Source. Read More >>

Nov 11: FTX files for Chapter 11 bankruptcy protection in the US; Sam Bankman-Fried resigns as CEO. Read More >>

The Fallout

  • Crypto Crash Intensifies Amid Downfall of Industry's 'White Knight' Bankman-Fried. Read More >>
  • Fall of a Crypto Titan Puts an Industry on Edge. Read More >>
  • FTX Downfall Draws Washington Scrutiny, Threatens Crypto Lobbying Campaign. Read More >>
  • FTX Faces US Justice Department Probe: Report. Read More>>

More (Non-FTX) Headlines From the Digital Assets and Blockchain World

Mass Arbitration Claim Shows Potential for Blockchain.

Zimbabwe Learns Lesson From Nigeria’s eNaira for Its CBDC Plans. Read More >>

Crypto Could Save the Lebanese People From Economic Collapse – Here’s Why. Read More >>

Japan’s Digital Agency Delves into DAOs, Seeks to Explore Their ‘Functions and Roles.’ Read More >>

JPMorgan Executes Its First DeFi Trade Using Public Blockchain. Read More >>

US Securities Regulators Win Case Against Crypto Company LBRY. Read More >>

Institutional Adoption Increases Despite Crypto Winter.

US Changes Sanction Reasons on Virtual Currency Service Tornado Cash. Read More >>

Countries to Face ‘Grey List’ in Anti-Terror Crackdown on Crypto. Read More >>

US CFPB Publishes New Bulletin Analyzing Rise in Crypto-Asset Complaints. Read More >>



Selected events for deeper dives into different parts of the digital assets and DeFi world.

Mayer Brown Tax partner Mark Leeds spoke on “Crypto, Blockchain and Fintech – Can Tax Keep Pace with Technology?” during the International Bar Association (IBA) Annual Conference on November 3, 2022 in Miami, Florida. To download the panel materials, please visit here.



For those new to the digital assets and DeFi world, each edition of the Digital Assets Download will highlight a different term to help you be a part of the conversation.

Proof of Reserves (PoR): A Proof of Reserves (PoR) is an independent audit and a public-facing attestation of a custodian’s reserves, matched up with a proof of user balances (liabilities).

A PoR audit is conducted by a third party that seeks to verify that a crypto custodian holds the assets it claims to on behalf of its clients.

In performing a PoR, the auditor takes an anonymized snapshot of all balances held and analyzes it using a Merkle tree, a cryptographically secured (i.e., tamper-proof) method of verification of assets on reserve that is designed to maintain privacy.

In the wake of the collapse of FTX, there have been increasing calls for crypto exchanges to implement PoR’s.



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