GM. Welcome to Degen Lawyer's Newsletter, where we bring you your weekly dose of legal insights, and regulatory updates in the emerging tech and law space. Our expert lawyers serve up curated analysis, hot takes, and expert commentary, sprinkled with a healthy dose of the wacky and meme-worthy. Enjoy!

In this week’s edition:

1. 3AC co-founder Su Zhu gets arrested:

   Su Zhu the co-founder of 3 Arrows Capital (3AC) was arrested in Singapore. According to authorities, this was during an attempt to flee. 3AC last year managed about $10 Billion in assets, making it one of the most prominent crypto hedge funds in the world. The two co-founders have been on run since the exposé of their poor risk management and debt default. This was a major contributor to the Crypto Contagion. Su Zhu will be the latest to don the orange jumpsuit, joining the ranks of other disgraced founders like SBF, Do Kwon and Alex Mashinsky. Crypto is finally cleaning house.

2. Does ‘Meta’ finally has something to get excited about?

   Meta and Mark in particular have gotten a lot of slack over their massive bet on the Metaverse. It is rumoured Mark has spend $40 Billion on its Metaverse project. With some inventors calling it the most expensive project in the HISTORY of tech. Honestly, they’ve had little to show for it, till now! Check out this podcast with Lex Friedman. Considering this is just a Version 1.0, the possibilities are honestly mind-blowing. Maybe this one time I’m actually rooting for Mark, maybe.

   

   IYKYK

3. Argentina goes Digital with its Identity

   The local government of Buenos Aires has launched a Digital ID service for storing marriage and death certificates. he service will be available to residents of Buenos Aires from this month and the local government is working on legislation to give digital credentials the same legal status as physical documents. This will ensure access to government services, no-tampering of certificates and reliable proof of identity. Way to go Argentina!!

   Article of the week - Google’s Dominance Challenged by Indian Startups?

   Indian start-ups have had to cough up between 15-30% as a commission fee for any purchases made in-app on the Play Store. For some context, India is Google’s largest market, by users, with an estimated 600 Million users. Large Indian Startups like Paytm, Shaadi and Unacademy have been rallying for years for Google to change their Google Play Billing System (GPBS) policy and lower the prohibitively high costs, but, to no avail.

   This led to several challenges before the courts and the Competition Regulator of the country (CCI). In October of last year, the CCI fined Google INR 900 Crores for abusing the dominant position of its Google Play Store by insisting that app developers use Google’s own billing payment system for all purchases.

   Other courts have ruled against Google in specific cases. Now the companies have gone a step further, in an unprecedented industry move, they have collaborated to form a 40-member task force aimed at addressing concerns with Google, focusing specifically on the GPBS. Interestingly the task force intends to hear submissions from Google as well, before deciding on its next steps. The Supreme Court is set to hear a slew of cases referred from the CCI and various other High Courts.

   

   However, it doesn’t stop here! Phonepe has decided to go ahead and build a rival Play Store, yup you read that right, they want to punch the giant where it hurts. Indus App Store is going to have 0% fee and comes with the ‘Made in India’ tag. It instead will charge a ‘nominal’ annual subscription fee.

   The world is looking on as India is taking on Go(liath)ogle. Only time will tell if David will come out on top.

   Weekly Explainer

   We are going to do something a little different this week, instead of explaining the ongoing confusion surrounding ‘security’ in the US in light of the Howey Test. There is no better place to start than through the amazing roast of Gary Gensler (Courtesy of the Congress).

   https://www.youtube.com/watch?v=xgLzS_zoQSE 

   The question of a ‘contract’ being part of the definition of ‘investment contract’ and the Pokemon analogy where just so on point. Coudnt have asked for more. Particularly in an economy with markets as mature as America, it is vital that the SEC gets this right. The ecosystem as a whole is affected by the actions of Gary Gensler and the folks at the SEC.

   To learn more about such concepts, visit our resource page linked below:

To learn more about such concepts, visit our resource page linked below:

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