Korean crypto firms relocating for cheaper rent amid prolonged crypto winter

Korean Blockchain Game Publisher Joins UNGC to Bolster ESG ManagementWemade, a Korean blockchain game publisher, joined the United Nations Global Compact (UNGC) to bolster its environmental, social, and governance (ESG) management. The company announced its membership through a press release issued on Wednesday.Photo by Noah Buscher on UnsplashUNGC membershipSince its establishment in 2000, the UNGC has evolved into the largest corporate sustainability initiative worldwide. With a membership base of over 20,000 companies spanning across 162 countries, it serves as a platform for organizations to align their operations with ten principles encompassing human rights, labor, environment, and anti-corruption.Annual reportsUnder the guidelines of the UNGC, Wemade will fulfill its commitment by submitting an annual report called the Communication on Progress (COP). The company’s objective is not only to meet sustainable development goals but also to enhance its ESG management. Along with these endeavors, the company will strive to improve its corporate citizenship.ESG managementIn expressing his thoughts on the matter, Wemade CEO Chang Hyun-guk emphasized that the company’s inclusion in the UNGC would serve as a catalyst for driving sustainable growth through ESG management. He underscored its commitment to fulfilling corporate social responsibility and meeting global standards by practicing ESG management, given its position as a leading entity in the blockchain market.Wemade’s three main objectivesMeanwhile, Wemade is practicing ESG management centered on three main objectives: responsible environmental management, inclusive growth for future generations, and transparent governance.

Bankruptcy Judge Permits Terraform Labs to Subpoena FTXIn a significant development in the bankruptcy case of defunct crypto exchange FTX, a judge has granted Singapore-based Terraform Labs the authority to subpoena information related to its ongoing case brought by the United States Securities and Exchange Commission (SEC).Photo by Bermix Studio on UnsplashHack allegationsTerraform Labs, the blockchain company that developed the Terra blockchain and failed US dollar stablecoin UST, claims that the failures of its algorithmic stablecoin and governance token were the result of an attack from short-sellers, possibly involving Alameda Research (FTX’s sister company).The order, issued by Judge John Dorsey on Monday, allows Terraform Labs to serve subpoenas to FTX Trading and FTX US, aimed at collecting evidence to support its defense against the SEC’s allegations of fraud. According to court filings, lawyers representing the FTX Debtor have not formally objected to the court order.Terraform Labs’ request for subpoena power stems from its belief that short-sellers connected to FTX entities played a role in the failure of the algorithmic stablecoin and governance token, leading to the collapse of the crypto firm. The ability to obtain information from FTX through the subpoenas could be crucial in bolstering Terraform Labs’ defense against the SEC’s fraud charges.UST collapse falloutThe collapse of the UST stablecoin in 2022 contributed to a major market crash, resulting in a significant drop in the prices of many tokens. As a result, the company filed for bankruptcy in November 2022. The Co-Founder of Terra, Do Kwon, is currently serving a four-month sentence in a Montenegrin prison for using false travel documents. He may also face extradition to the United States or South Korea on fraud charges related to Terraform Labs.Motion to dismiss deniedIn a separate high-stakes ruling, US District Judge Jed Rakoff denied Terraform Labs’ motion to dismiss the securities fraud lawsuit filed by the SEC. The judge’s decision allows the SEC’s case against Terraform Labs and Do Kwon to proceed, rejecting defense arguments that the agency lacked jurisdiction and that Terraform’s TerraUSD stablecoin did not qualify as an unregistered security.Judge Rakoff’s ruling is a significant victory for the SEC as it intensifies its enforcement actions against crypto companies involved in allegedly unlawful token sales. He found the collapse of TerraUSD, which lost its dollar peg and incurred a $40 billion loss last year, plausible as a reason to consider the token as a security that should have been registered.Moreover, Rakoff dismissed Terraform’s claim that the SEC lacked the authority to regulate stablecoins without explicit Congressional authorization, asserting that the crypto industry was significant enough to warrant application of the “Major Questions Doctrine.” This doctrine limits agency overreach into major political issues but does not apply to the crypto asset markets.The judge also rebuffed Terraform Labs’ attempts to draw parallels between the Ripple case and its own. In the Ripple case, a different judge ruled that Ripple’s XRP token sales to retail investors did not violate securities laws due to the manner of purchase on secondary markets. Rakoff firmly stated that such distinctions did not apply under the legal Howey test governing whether crypto assets qualify as securities.

WazirX Founder’s Blockchain Startup Raises $5.4MShardeum, a highly-scalable layer-1 blockchain utilizing dynamic state sharding, has successfully closed a strategic raise of $5.4 million.The project was co-founded by Nischal Shetty, who also founded leading Indian cryptocurrency exchange WazirX.Photo by Shubham Dhage on UnsplashWorking towards mainnet launchThe funding round saw participation from prominent investors including Galxe, J17 Capital, JSquare, and TRGC, among others. Singapore’s Amber Group, a digital assets trading, products, and infrastructure firm, also participated. The additional capital will be used to facilitate the expansion of Shardeum’s ecosystem, leading up to the highly anticipated mainnet launch later this year. As part of that launch, it will also introduce $SHM, its native token. 5% of $SHM tokens are being allocated to ecosystem development and to community airdrops.What is Shardeum?Shardeum is a highly-scalable EVM-based layer-1 blockchain that utilizes dynamic state sharding. By employing dynamic state sharding, Shardeum ensures low gas fees and high transactions per second as the network expands. The platform achieves consensus at the transaction level, reducing the computational power required for validator nodes. This composition means that it’s engineered for linear scalability.This consensus mechanism enables broad accessibility and increased decentralization by allowing anyone to run a node. Through the power of dynamic state sharding, Shardeum offers a scalable and secure solution that addresses the blockchain trilemma while ensuring decentralization for all participants.Dynamic state shardingSince its establishment in 2022, Shardeum has been focused on delivering a highly-scalable EVM-based layer-1 blockchain with dynamic state sharding capabilities. As of Friday, the Shardeum testnet has already witnessed over 7.4 million transactions, with over 820,000 accounts and more than 230,000 contracts deployed.Kelsey McGuire, the Chief Growth Officer at Shardeum, expressed enthusiasm about the completion of the strategic raise, emphasizing the company’s commitment to cultivating a global and diverse community. McGuire highlighted Shardeum’s consensus design and the accessibility of validator participation, regardless of users’ computing resources. The additional funding will further support Shardeum’s dedication to decentralization by fostering worldwide community growth through educational initiatives and other key programs.Initial $18.2M seed roundIn addition to the aforementioned investors, the strategic raise attracted notable participants such as Bware Labs, Tané Labs, Hyperithm Group, and Luganodes, among others. This round follows Shardeum’s successful seed round in October 2022, which raised $18.2 million and involved backers such as Jane Street, Big Brain Holdings, Struck Crypto, The Spartan Group, Ghaf Capital, DFG, CoinGecko Ventures, and Foresight Ventures. Funding from that initial seed round went towards hiring more employees, expanding the Shardeum network, and growing its community.A Shardeum project team member told The Block that the raise now places a valuation on the overall company of around $248 million. Shetty recently told Forbes that he believes Shardeum can be a direct competitor to Ethereum. The WazirX Founder outlined that the blockchain was envisioned on the basis of low fees and scalability regardless of the extent of the network growth that transpires.