This move by Ant Group comes immediately after the Chinese government has strengthened the management of cryptocurrencies and the cryptocurrency industry is also in economic downturn.
Ant Group would like to divest from the cryptocurrency section. Photo: Bloomberg
Second BloombergAnt Group, a fintech giant belonging to the Alibaba Group founded by billionaire Jack Ma, is arranging to withdraw from the $one hundred million A&T cryptocurrency investment fund to exit the cryptocurrency area.
NEW: China’s Ant Group is arranging to withdraw its investment from a $one hundred million fund as it retreats from cryptocurrencies https://t.co/oVKft4SnTJ pic.twitter.com/zLkjzgbTzR
— Bloomberg Crypto (@crypto) September 18, 2023
This move comes just a number of months immediately after Mr. Yu Jun, A&T’s founding spouse, resigned, just as the firm launched an investigation into his “sexual harassment” conduct, which sparked a wave of criticism at the time. public view.
— A&T Capital (@AT_Capital2021) March 26, 2023
Mr Yu Jun is the former CEO of Ant Group, which aided the Jack Ma-backed fintech group set up A&T Capital to invest in cryptocurrency tasks overseas.
A&T Capital was founded in April 2021. This fund invested in a variety of notable cryptocurrency startups for the duration of the “2021 bull market,” together with digital asset loan provider Matrixport and Ethereum infrastructure programming company Consensys ( the drive behind the MetaMask wallet). Ant Group is a important investor in A&T.
PitchBook information demonstrates that investment capital flows into the cryptocurrency sector from venture capital money have fallen to the lowest degree given that the 1st quarter of 2020. The drop comes immediately after the 2022 cryptocurrency industry crash and amid the developing curiosity in artificial intelligence (AI) technologies.
Cryptocurrency capital funding from venture capital money from Q1 2020 to Q2 2023. Source: PitchBook
Ant Group’s withdrawal of capital from A&T Capital is 1 of the indicators that Chinese organizations are starting to be additional cautious about cryptocurrencies. This accurately displays the present scenario of cryptocurrencies in the “land of billions” in 2023, the most notable ones involve:
– June 2023: Chinese police have busted a skilled drug trafficking ring paid in Bitcoin. Vworkstation The SEC’s lawsuit towards Binance and CEO Changpeng Zhao was also reported by Chinese station CCTV.
– July 2023: Grampa Zhaojun, The CEO of the Multichain venture was contaminated Chinese police confiscated personal computers, phones, hardware wallets and keys. Multichain’s executive workforce was then forced to completely discontinue the venture.
– August 2023: Some senior members of the Chinese cryptocurrency exchange Huobi (now Cooperative) fell into the sights of the Chinese police. The motive is for the reason that the government of a nation of billions of men and women is actively wiping out platforms deemed to be working with out registration, “money laundering,” and illegally transferring income abroad, quickly immediately after major to a series of FUDs surrounding Huobi.
In contrast, the Chinese government seems to have offered the “green light” for the Hong Kong Special Economic Zone to situation a regulatory framework for managing cryptocurrencies and authorize quite a few global crypto organizations to do company and deliver solutions to men and women. .
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