KISA Seeks Partners for Regional Blockchain Innovation Support Center Project

South Korea’s largest crypto exchange, Upbit, suffered a security breach on Nov. 27 that resulted in the theft of 44.5 billion won ($30.4 million) in digital assets, all taken from the exchange’s hot wallets. The stolen tokens were all Solana-based, and Upbit CEO Oh Kyoung-suk said in a statement that no users will incur losses, as the company will cover the full amount with its own reserves.Photo by FlyD on UnsplashHot-wallet breach hits 24 tokensThe exchange said in a statement that the compromised tokens were transferred to an unknown external wallet at around 7:42 p.m. UTC on Nov. 26. In total, 24 cryptocurrencies were affected, all within the Solana ecosystem. The stolen assets ranged from infrastructure tokens such as Solana (SOL) to staking-related assets like Jito (JTO), along with the stablecoin USD Coin (USDC) and memecoins including Bonk (BONK), Moodeng (MOODENG), and Official Trump (TRUMP). According to Oh, the breach was followed by an emergency security review of the affected networks and wallets. He added that all remaining assets were moved to cold storage to prevent further unauthorized transfers. Oh also said the exchange is working to trace the stolen assets and block on-chain movements wherever possible, noting that Solayer (LAYER) tokens worth 2.3 billion won ($1.6 million) have already been frozen. Upbit is also reaching out to relevant projects and institutions for assistance. This marks Upbit’s second theft case. The first took place on Nov. 27, 2019, exactly six years ago to the day, according to News1. Authorities focus on Lazarus’ involvementFinancial authorities are investigating the incident, and North Korea’s Lazarus Group is being treated as the leading suspect, the Maeil Business Newspaper reported. Lazarus is also believed to have been behind the 58 billion won ($40 million) worth of Ethereum (ETH) stolen from Upbit in 2019. A government official told the paper that the latest breach did not appear to stem from a server intrusion but may have involved a stolen administrator account, allowing the attackers to impersonate internal staff and move assets—similar to the method used in the 2019 case. Security analysts echoed that assessment. One investigator said the stolen funds moved through exchange wallets before being mixed, a pattern often linked to Lazarus. He added that mixers, which are prohibited in Financial Action Task Force (FATF)-member jurisdictions, make tracing difficult and that attackers typically route assets through countries outside that framework, further pointing to North Korea. Following the incident, Upbit suspended deposits and withdrawals for all assets and said services will resume once security is fully verified. The halt has also affected trading dynamics on the exchange, with CryptoQuant CEO Ki Young Ju noting that retail investors are fueling altcoin spikes as arbitrage bots remain offline. Dunamu, Naver set $6.8B growth planThe security crisis struck at a particularly sensitive moment for Upbit’s operator, Dunamu, overshadowing what was intended to be a celebratory corporate milestone. On that same day, Dunamu, Naver, and Naver Financial held a joint press conference to outline their global expansion strategy. Dunamu brings its blockchain and crypto infrastructure, Naver contributes its position as Korea’s dominant search engine, and Naver Financial adds its payment platform serving 34 million users. The event came after reports that Naver Financial and Dunamu had approved a merger plan through a comprehensive share swap, with the ratio set at 2.54 to 1. The three companies said they will combine their respective strengths to invest 10 trillion won ($6.8 billion) over the next five years in building an ecosystem centered on Web3 and artificial intelligence (AI).During the press conference, Naver CEO Choi Soo-yeon said no decisions have been made on a Nasdaq listing for the newly combined Naver Financial–Dunamu entity or on whether it might eventually merge with Naver, according to TechM. She said dual listings remain a matter requiring national consensus. Choi also noted that while Naver Financial is a Naver subsidiary, Dunamu is the larger partner, and a later merger between the combined entity and Naver is unlikely.

Klip Wallet’s WalletConnect Integration Includes Access to OpenSea NFTsGroundX, a blockchain subsidiary of the South Korean messaging app behemoth Kakao, has announced that its digital asset wallet, Klip, now supports WalletConnect, a protocol that enables seamless connections between mobile cryptocurrency wallets and decentralized applications (dApps).Photo by Mariia Shalabaieva on UnsplashAccess to OpenSea and beyondThis integration brings new benefits to Klip users, as they can now easily access various platforms, including the popular non-fungible token (NFT) marketplace, OpenSea. With WalletConnect, users can efficiently manage a wider range of digital assets, making their experience more comprehensive and convenient.PC and mobile compatibilityAnother advantage of Klip’s adoption of WalletConnect is that both PC and mobile users can now access Klip and other blockchain services through this protocol. This ensures a smooth user experience across different devices, allowing for greater accessibility and flexibility.GroundX’s expansion effortsGroundX has been working on improving Klip’s functionality and services. Recently, it forged a partnership with the 1inch Network, a decentralized finance (DeFi) aggregator that offers competitive token swap rates on various decentralized exchanges, enhancing Klip’s token exchange capabilities. Thanks to this collaboration, Klip users can not only exchange Klaytn-based tokens but also tokens based on the Ethereum and Polygon blockchains. This expanded compatibility adds further value to the Klip wallet, empowering users with more options and opportunities for managing their digital assets efficiently.A spokesperson from GroundX emphasized that these recent enhancements in the Klip wallet will enhance its usability and convenience for users. The spokesperson added that the inclusion of various NFTs and DeFi assets within Klip through WalletConnect will lead to the expansion of the Klip wallet’s ecosystem.

Huobi Aims for Hong Kong License Within 6–12 MonthsAccording to Justin Sun, the founder of layer one blockchain Tron and advisor to Huobi, the cryptocurrency exchange could have obtained a crypto trading license in Hong Kong by the end of the year.Photo by Pixabay on PexelsApplication submissionIn an interview with CoinDesk TV on Friday, Sun revealed that Huobi recently submitted an application to become a virtual asset service provider (VASP) in Hong Kong. While the approval process typically takes up to 18 months, Sun expressed optimism that a decision could be reached within the next six to twelve months.A legacy Chinese cryptocurrency exchange was driven out of the country a few years ago following the implementation of a crypto trading ban, and is now a Seychelles-headquartered company which currently has offices in Singapore, Japan, South Korea, and the United Kingdom.It had been previously understood that at least 10 companies with Chinese founders, including OKX, Bybit, and Huobi, had either announced or were known to be planning to announce their bid for licenses in Hong Kong. Sun’s comments today add clarity to the matter.Sun highlighted that during this grace period, which spans the next 18 months, the specific details of regulations will be developed. This includes guidelines on compliance with customer withdrawals and anti-money laundering requirements. He further explained that with the approval, Huobi Hong Kong will be able to operate, onboard customers, establish banking relationships, and serve its user base effectively.In a strategic move, Huobi relocated its headquarters from Singapore to Hong Kong, driven by the city’s aspirations to become a leading virtual asset hub as early as this summer. The exchange’s decision to establish a presence in Hong Kong positions it favorably to leverage the emerging opportunities in the region.Expectations of more applicantsWhile it’s not entirely clear who else has applied, Sun speculated that five to six other major players could follow suit. Among the potential contenders mentioned were OKX, Gate.io, Bitget, and ByBit. This suggests a potential wave of interest in Hong Kong as a regulatory-friendly jurisdiction for virtual asset trading.When asked about Huobi’s plans to enter the Canadian market and compete with established players like Coinbase and Kraken, Sun made it clear that Huobi has no immediate intentions to operate in Canada. He emphasized the importance of prioritizing friendly jurisdictions, with a specific focus on regions like the Caribbean, Hong Kong, and Japan.Hong Kong’s regulatory approach towards cryptocurrencies and virtual asset service providers has gained attention in recent months. The city’s commitment to establishing a robust framework for digital asset trading and ensuring compliance with international standards has drawn interest from industry players seeking regulatory clarity and stability.As Huobi progresses through the application process and awaits a decision on its VASP license, the outcome will have significant implications not only for the exchange itself but also for the broader crypto ecosystem in Hong Kong. The successful acquisition of a license by Huobi could set a positive precedent, attracting more exchanges to establish a presence in the region and further solidifying Hong Kong’s position as a leading virtual asset hub in Asia.The developments in Hong Kong’s regulatory landscape will be closely monitored by industry participants as they shape the future of virtual asset trading in the city.