Korea Investment and Securities Completes the Construction of Security Token Infrastructure

Crypto Exchange HTX Reports $8 Million Hack Over WeekendCrypto exchange HTX confirmed on Monday that it fell victim to a hack over the weekend, resulting in losses amounting to 5,000 ETH ($8 million).HTX stakeholder Justin Sun, Founder of layer one blockchain TRON, disclosed the breach via an X post. In a series of subsequent X posts, Sun assured users and stakeholders that the exchange had promptly covered the losses, and current user deposits remained secure. He also emphasized that the platform was operating normally despite the security incident.Photo by GuerrillaBuzz on UnsplashHacker incentiveThe TRON Founder also extended an offer to the hacker responsible for the breach. He proposed a 5% reward for the return of the remaining funds, a figure notably lower than the 10% often offered to hackers in similar situations. Additionally, Sun dangled the possibility of a job at the exchange. That’s an unusual response to a cryptocurrency hack and one that had one commentator speculating upon the notion that the hacker belonged to the notorious North Korean Lazarus hacking group, pondering the prudence of such a move.Data from DeFi data aggregator DeFiLlama revealed that Seychelles-based HTX, formerly known as Huobi, witnessed nearly $10 million in outflows, with a remaining $2.73 million in customer deposits as of the latest data.Hacker’s identity may be knownThe hacker, who received a series of messages from an address identified as an HTX hot wallet by Nansen, was presented with a stark choice. The messages, written in both English and simplified Chinese, claimed to have uncovered the hacker’s true identity and urged the return of the stolen funds to the address 0x18709E89BD403F470088aBDAcEbE86CC60dda12e. In return, HTX offered a 5% “white hat bonus” valid until October 2, 2023. If the funds were not returned by that date, law enforcement would be involved, the message warned.The hack came shortly after Justin Sun shared a promotional video in which he depicted himself defeating a hooded figure symbolizing a hacker “shorting crypto” with a single punch while on a spaceship journey to what appeared to be Mars.Insolvency fearsOn Tuesday, Sun outlined that the exchange had established a “SAFU” (Safe Asset Fund for Users) fund for platform users. However, taking to X on Monday, Adam Cochran, Managing Partner at Cinneamhain Ventures, claimed that there was a likelihood that the HTX business is insolvent. Cochran maintains that available data suggests a shortfall in crypto holdings relative to HTX users' assets.Travis Kling, Founder and Chief Information Officer of Ikigai Asset Management, went one further on X, stating:”Not “probably”. Huobi is insolvent.”Kling, a long-time critic of Binance, went on to suggest that if Huobi were to collapse, that event would likely lead to Binance unraveling also.HTX originated in China and nowadays maintains offices in Singapore, Japan, South Korea, Hong Kong, and the UK. It has long been speculated that Justin Sun has a controlling stake in the HTX business. Sun has denied that assertion, instead suggesting that he is a member of HTX’s “Global Advisory Board.”

Kiwoom Securities and Koscom Partner to Pilot Security Token Platform Amid Regulatory ChangesKiwoom Securities, a securities firm based in South Korea, has recently taken a step forward by announcing its collaboration through a memorandum of understanding (MOU) with fintech company Koscom. This partnership aims to carry out a pilot program for a security token platform.Photo by Shubham’s Web3 on UnsplashPreparing for regulatory shiftIn light of the expected enactment of a revised bill that will establish a legal framework for security tokens, the two companies have joined forces to work towards creating standardized practices for security tokens. Once this regulatory act comes into effect, fractional investment companies — the entities responsible for issuing security tokens — will have the opportunity to kick-start their operations promptly. This will be possible by utilizing the systems developed by securities firms, also known as account management institutions. The primary objective of this MOU is to define the essential industry standards that will facilitate this process.Combining strengthsWhile Kiwoom Securities benefits from a substantial retail customer base, Koscom brings technological expertise to the table thanks to its four-decade-long track record of constructing the data infrastructure for capital markets. Together, they will work to verify the seamless integration of distributed ledger technology into the operational system of the securities firm.Kiwoom Securities has been making strides in this direction through its partnerships with diverse companies, including music copyright trading platform Musicow and fine arts fractional investment platform Tessa. These collaborations have provided Kiwoom Securities with practical experience and technological insights relevant to security tokens.Hwang Hyun-soon, CEO of Kiwoom Securities, expressed Kiwoom’s commitment to collaborating to ensure that the security token platform developed by both companies evolves into a benchmark platform for the future security token market.Hong Woo-sun, CEO of Koscom, remarked that they expect the agreement to play a role in advancing their security token businesses and developing the Korean security token market.

On Thursday, South Korea’s Personal Information Protection Committee (PIPC) launched an investigation into Worldcoin’s personal data collection, processing and potential overseas transfer of sensitive personal data, the PIPC announced today via its official website. This comes after a number of complaints were filed against Worldcoin for its data collection practices.  Sam Altman’s crypto project Worldcoin gathers people’s personal data who signed up to have their irises scanned by “orbs” devices, which are currently installed in about 10 locations in Korea, including Yeouido, Pangyo and Apgujeong. The project started with the aim of distributing universal basic income to people whose jobs will be potentially replaced by artificial general intelligence (AGI) in the future. Photo by Colin Lloyd on UnsplashThe PIPC said the regulators will examine if any local privacy law has been violated by Worldcoin, and take further action in line with the Personal Information Protection Act. Following the launch of the investigation on Feb. 29, Worldcoin has withdrawn six orbs devices in Korea and stopped accepting new members. It has also suspended the distribution of the Worldcoin token (WLD) to members who have already signed up, media outlet Chosun Biz reported.  Free crypto tokens in exchange for personal data For individuals who have their irises scanned, Worldcoin rewards three WLD tokens every two weeks, which are worth approximately $22.5 (KRW 30,000) at the time of writing. The price of WLD has soared by nearly ten-fold from about KRW 1,300 last year to over KRW 13,000 today, according to the data from the local crypto exchange Bithumb. This price surge followed OpenAI’s launch of a text-to-video AI tool, Sora. The current circulating supply of WLD stands at around 100 million tokens. According to Worldcoin’s white paper, the WLD’s total supply cap will remain fixed at 10 billion tokens during the first 15 years following its launch.  The data collected from the eyeball scanning is shared on the Worldcoin blockchain, which is protected by the zero-knowledge proof technology that prevents the data from being tracked or shared with other applications. The personal data remaining in the orbs devices is deleted.  Ongoing overseas investigation on Worldcoin South Korea is not the only country that is examining Worldcoin’s personal data collection practices. The project’s processing of information has raised concerns in other jurisdictions as well, including the U.K., France, Argentina and Kenya. In the U.S., the issuance of WLD tokens has been banned by the country’s authority.