Sony Network Communications and Startale Labs to Launch Joint Blockchain Venture

It's been nearly ten years since the infamous collapse of the Japanese bitcoin exchange Mt. Gox, with some creditors of the defunct business now claiming to have finally received their long-awaited repayments.Photo by Su San Lee on UnsplashSubreddit payment confirmationsTestimonies shared on the Mt.Gox creditor subreddit and a dedicated Telegram channel reveal that certain payments, in the form of Japanese yen, have been distributed to creditors who opted for PayPal as their preferred mode of receipt. Excitement marked the early stages of this repayment process. Users on Reddit joyfully shared their experiences, with one exclaiming:"I got money!! I just got my initial payment via Paypal!!"This development comes after Mt.Gox rehabilitation trustee, Nobuaki Kobayashi, had previously extended the repayment deadline from Oct. 31, 2023, to Oct. 31, 2024. However, last month, Kobayashi informed creditors that certain cash repayments would be initiated before the year's end. Despite efforts to expedite the process, the sheer volume of creditors and the complexities involved mean that repayments will continue into 2024. The collapse of Mt.Gox in early 2014 triggered global regulatory responses and initiated a nearly decade-long bankruptcy and corporate rehabilitation process. The exchange fell victim to a series of hacks between 2011 and 2014, leaving a lasting impact on the cryptocurrency landscape. The commencement of repayments has been hanging over the crypto market for many years, with many fearing that the process may have a dampening effect on the bitcoin unit price, given that funds are being distributed in Japanese yen and bitcoin. Earlier this year, the U.S. government indicted two Russian nationals for laundering funds stolen from Mt.Gox, shedding light on the enduring legal ramifications stemming from the exchange's demise. Double payment glitchHowever, it appears the process encountered some glitches, as other Reddit posts indicated that a few creditors received double payments via PayPal, adding a new layer of complexity to the already intricate Mt. Gox saga. Reddit users, such as u/rlycreativename, have shared emails they claim to have received from the Mt.Gox Rehabilitation Trustee. The emails acknowledge a system issue leading to inadvertent double transfers and legally obligate recipients to return the surplus amount. While some users have complied with the request and returned the duplicated funds, others have expressed hesitancy, citing the historical challenges creditors faced in obtaining their money. The situation has evoked discussions on Reddit, with users debating whether the Trust deserves a swift return, considering the prolonged struggle creditors endured to reclaim their funds. While it may be tempting for some creditors to hold on to the duplicate payment, such a decision may only serve to heap more misery on long-suffering Mt.Gox creditors. The recent case of Jatinder Singh and Thevamanogari Manivel would be very relevant for creditors to consider. Singh was a customer of well-known digital assets platform Crypto.com. In 2021 the firm inadvertently transferred $10 million to his account. Singh conspired with Manivel to withdraw and keep the funds. A community corrections order of 18 months has been imposed on Manivel in Australia while Singh will be sentenced in February.  

As the cryptocurrency market’s sluggish performance stretches into another year, South Korean investors have largely engaged in a wait-and-see approach. According to local media outlet Dailian, users are now checking prices only occasionally rather than trading actively, a shift evidenced by sharp declines in engagement metrics at the country’s two dominant exchanges, Upbit and Bithumb.Photo by NordWood Themes on UnsplashHigh retention, low activityData from Mobile Index reveals a stark contrast between user retention and actual activity. Throughout 2025, monthly active user (MAU) levels remained relatively stable—Upbit recorded as many as 4.7 million MAUs, while Bithumb reached approximately 2.7 million at its peak. This suggests that while the market downturn has dampened enthusiasm, it has not driven users to exit the ecosystem entirely. However, the time users spent on these platforms plummeted as liquidity dried up. In January 2025, ample market liquidity drove aggressive trading behavior; Upbit users spent an average of 7 hours and 30 minutes on the app during the month. By December, that figure had crashed to just 2 hours and 30 minutes—a 66.4% decline. Bithumb experienced a similar contraction, with average monthly usage falling from 233 minutes in January to 120 minutes in December. Aggregate usage followed the same downward trajectory. On Upbit, total monthly time spent across the user base fell from 35.66 million hours in January to 10.54 million hours in December. Bithumb saw total hours drop from 10.63 million to 4.65 million over the same period. The altcoin freezeThis reduction in screen time correlated directly with collapsing trading volumes. Upbit’s daily trading volume shrank from approximately 270 trillion won ($187 billion) in January to 52 trillion won ($36 billion) in December. Bithumb saw a proportional decline, dropping from 85 trillion won ($59 billion) to 24 trillion won ($17 billion). Analysts attribute this trend to a capital concentration in major assets like Bitcoin, which hit a new all-time high in October. Conversely, altcoins—which typically account for a disproportionately large share of trading volume in South Korea—failed to spark a rebound. Despite aggressive listing strategies—Upbit listed 73 new tokens and Bithumb added 156 last year—the influx of new assets failed to prompt a broader rally. One industry expert noted that none of the newly listed tokens managed to stand out, adding that the decline in Bitcoin prices later in the year further soured sentiment toward altcoins. The expert also highlighted that stronger performance in traditional asset classes, including U.S. and South Korean equities and gold, drew capital away from the crypto sector. However, another analyst offered a less pessimistic interpretation, suggesting that 2025 was not a year of investor exodus but rather one of dormancy. Investors chose to stay on the sidelines due to a lack of clear profit opportunities, implying that a resurgence in altcoin momentum could restore trading activity. Institutional giants push forwardDespite the retail lull, traditional financial institutions are actively exploring the sector, positioning themselves for future utility. Last month, BC Card signed a memorandum of understanding with U.S.-based exchange Coinbase to test USDC payments at South Korean merchants. The pilot program aims to integrate Coinbase’s Base blockchain wallets with BC Card’s QR payment infrastructure. Simultaneously, the broader card industry is preparing for the second phase of crypto legislation, which is expected to focus on stablecoin regulation. Nine credit card companies—including Samsung Card, Shinhan Card, and KB Kookmin Card—plan to form a task force this month under the Credit Finance Association (CREFIA). This initiative will focus on building an end-to-end system for stablecoin-based card payments and merchant settlements, including pilot tests for stablecoin-linked debit cards usable at standard payment terminals. Investment interest also remains alive in the corporate sector. Mirae Asset Financial Group is reportedly considering acquiring Korbit, the country’s fourth-largest exchange, through its subsidiary Mirae Asset Consulting. Market observers estimate the potential deal could be valued at up to 140 billion won ($97 million). 

OpenAI CEO Sam Altman's Worldcoin project aims to bolster ties with Malaysian officials amid concerns over data privacy. Sam Altman and Alex Blania, key figures behind the Worldcoin project, recently engaged in discussions with Malaysian leaders, including the nation's Prime Minister, to enhance government relations. The move comes as Worldcoin faces scrutiny and seeks to address concerns surrounding data protection.Photo by Esmonde Yong on UnsplashAddressing privacy concernsThe "proof-of-personhood" crypto project has been under scrutiny for its data collection practices. Last month, temporary bans were imposed by Spain and Portugal, halting Worldcoin's data collection activities. The project offers WLD tokens to users in exchange for iris scans to create their personal World ID, prompting privacy advocates' concerns. Government attention and oversightWorldcoin's high-profile nature, coupled with Sam Altman's involvement, has drawn significant government attention. Countries like Germany, France, Argentina, Kenya and South Korea have initiated investigations into the project's data collection practices. Despite challenges, senior government officials continue to engage with Worldcoin amidst growing concerns about artificial intelligence threats like deepfakes. Strengthening government relationsTo address regulatory concerns, Worldcoin's parent company, Tools for Humanity, appointed Trevor Traina, former U.S. ambassador to Austria, as Head of Global Affairs. Traina emphasized the importance of meeting policymakers' expectations regarding data privacy and security. New privacy measuresIn response to regulatory pressures, Worldcoin introduced "Personal Custody," discontinuing the storage of biometric data for new signups. Additionally, users can now request the deletion of their iris codes, and stricter age verification measures have been implemented to prevent minors from signing up. These measures were developed in consultation with privacy experts and data protection authorities. Despite challenges, Worldcoin has assigned over five million World IDs, according to project data.