Bullish Emerges as a Bidder for Bankrupt FTX Exchange

South Korean Firms Combine Strengths to Draw Hobbyists into the MetaverseCom2Verse, the metaverse subsidiary of South Korean game developer Com2uS, has formed a partnership with Somssidang, a leading hobby sharing platform, and Hana Bank, a prominent financial institution, to attract hobbyists to the metaverse.That’s according to a report by local news agency Newsis. This collaboration aims to create an infrastructure within Com2Verse’s metaverse that offers hobby classes and extends financial support to class providers.Photo by Steve Johnson on UnsplashSeminars and classes in metaverseThrough the combined expertise of the partnering companies, they strive to deliver engaging seminars and interactive classes in the metaverse, while actively promoting and expanding its ecosystem.Com2Verse plans to enable its metaverse users to partake in virtual as well as face-to-face courses offered by Somssidang. This will establish an environment conducive to the growth of hobby-related businesses, effectively bridging the gap between the physical and virtual realms. Somssidang, on its part, aims to expand its operations by providing high-quality content materials, such as classes by distinguished experts, to Com2Verse.Somssidang, boasting a user base of 1.2 million, stands as Korea’s largest hobby platform. The platform is currently offering a wide range of hobby classes, both online and in-person, across the nation. In addition to organizing lectures, Somssidang sells a wide range of do-it-yourself kits, as well as tickets for concerts, exhibitions, and tours. Furthermore, Somssidang provides specialized hobby workshops that are specifically tailored to meet the needs and preferences of business customers.Financial groundworkHana Bank, in collaboration with Com2Verse, will lay the financial groundwork necessary to support the metaverse. This partnership includes extending financial assistance to small business participants within the metaverse and promoting recreational activities for socially marginalized groups.CEO statementsCom2Verse CEO Lee Kyoung-Il expressed his conviction that the company’s metaverse will go beyond the traditional realm of online classes, offering educational courses that exceed expectations. He also emphasized the metaverse’s capacity to provide a diverse range of services, enabling users not only to enjoy their hobbies but also to achieve personal fulfillment. Somssidang CEO Jeong Myeong-won affirmed the platform’s commitment to developing content and services tailored specifically to the metaverse.Kim So-jung, Deputy President of Hana Bank, said this opportunity would converge cultural and financial sectors to realize our daily lives onto the metaverse. Kim added that Hana Bank is committed to ongoing strategic cooperation with the other two partners to deliver innovative financial services and fulfill its social responsibilities.

Taiwan's cryptocurrency scene has been rattled by the arrest of David Pan, the founder of ACE Exchange, a prominent cryptocurrency platform.Photo by Timo Volz on PexelsAccording to local media outlet Liberty Times, this development is part of a broader operation targeting fraudulent activities involving 13 additional suspects. Law enforcement authorities, as of now, have confiscated assets totaling around NT$200 million ($6.4 million), dealing a significant blow to the alleged fraudulent operations. A sophisticated fraud schemeThe arrest of Pan, alongside company executive Lin Nan, stems from accusations of a sophisticated fraud scheme orchestrated by the duo, along with their team. The modus operandi involved deceptive tactics, including the use of fake advertisements on popular social media platforms like Instagram and Facebook. Over the past three years, more than 100 investors have reportedly fallen victim to the scheme, losing over one billion yuan ($140 million). Lin Nan, leveraging social media, enticed potential investors with promises of quick wealth through the listing of virtual currencies on well-known exchanges. Simultaneously, David Pan lent credibility to ACE Exchange, fostering trust in the virtual currencies listed on the platform. However, investors soon discovered that the virtual currencies touted as having realizable value were, in reality, "junk coins" with plummeting values or no circulation options. Ace Exchange office raidLegal charges filed against the suspects include fraud under the Criminal Code, the Money Laundering Prevention Act and the Banking Act. Law enforcement agencies in Taiwan conducted multiple raids, including at ACE Exchange offices. Lin Nan's residence yielded NT$111.52 million ($3.6 million) in cash, with additional cryptocurrency seizures bringing the total to over NT$200 million ($6.4 million). In response to the scandal, ACE Exchange has distanced itself, asserting that the arrested individuals are not current employees. The company clarified that Pan had ceased active involvement in daily operations as of 2022. ACE Exchange is actively cooperating with the investigation and has positioned itself as a witness in the case. MOCT delistingDespite the ongoing investigation, ACE Exchange, founded in 2018 and a dominant player in Taiwan's crypto market, continues to operate, upholding regulatory obligations and prioritizing user interests. However, the incident has prompted the platform to announce the delisting of the MOCT-TWD trading pair, effective Jan. 8, in alignment with its commitment to regularly evaluate and delist tokens not meeting stringent criteria. This development occurs amid heightened scrutiny of cryptocurrency exchanges globally. CoinDCX, a major crypto investment firm, recently faced allegations of bank and crypto fraud on its mobile application. Similarly, Lee Jeong-hoon, former chairman of Bithumb, South Korea's major crypto exchange, received an eight-year prison sentence over alleged fraud, awaiting an impending appeal verdict. Taiwan, like Hong Kong, had also been dealing with the fallout from the fraudulent activity of Dubai-headquartered crypto exchange JPEX. David Pan is also the founder of the Dubai-based ZORIXchange cryptocurrency platform. Prior to crypto ventures, Pan worked for KPMG in Taiwan as its COO for startups and innovation. These cases underscore the critical need for comprehensive regulation of the crypto ecosystem. As digital assets gain popularity, the risks of fraudulent activities rise, necessitating collaboration between governments and regulatory bodies to establish and enforce stringent regulations that protect investors and uphold the integrity of virtual crypto exchanges. 

The South Korean government and the Democratic Party of Korea (DPK) plan to finalize legislation governing Korean won–pegged stablecoins by March. According to local media outlet DataNews, the two sides will hold a closed-door meeting on Jan. 20 to discuss agenda items related to the proposed Digital Asset Basic Act, widely referred to as the second phase of South Korea’s cryptocurrency legislation. A key sticking point is who should be allowed to issue stablecoins. Financial regulators favor, at least initially, limiting issuance to consortia in which banks hold a majority stake (50% plus one share), citing concerns about financial-market stability. The Democratic Party, however, opposes granting banks majority control. Separately, the draft would require issuers to meet capital-adequacy standards and maintain reserves equal to at least 100% of outstanding stablecoins.Photo by Greg Willson on UnsplashCBDC pilots to streamline public fundsBeyond private stablecoins, the government is also exploring potential public-sector uses for central bank digital currencies (CBDCs), including pilot programs that would deploy CBDC-based deposit tokens. As part of a broader digital transformation push, officials aim to use CBDC rails for a significant portion of public funds administration. By June, CBDC-based deposit tokens are set to be used in an electric vehicle charging infrastructure project: buyers of approved chargers would receive tokens to help ensure subsidies go only to eligible purchases and to shorten settlement times. Regulators are also considering steps to expand institutional access to cryptocurrencies. Under one proposal, publicly listed companies would be allowed to invest up to 5% of their equity in digital assets annually. Eligible investments would be limited to the top 20 tokens traded on the country’s five largest exchanges, with the list reviewed every six months. It remains undecided whether stablecoins, including USDT, would be included. Another planned change would permit the trading of exchange-traded funds (ETFs) that track spot crypto prices. While current law does not recognize digital assets as eligible underlying assets for such products, that is expected to change under the forthcoming legislative revision. Exchanges say caps threaten growthAt the same time, proposed governance changes that could cap controlling stakes at around 15% to 20% have drawn pushback from industry groups. The draft Digital Asset Basic Act would reshape control structures at South Korea’s largest cryptocurrency exchanges—Upbit, Bithumb, Coinone, and Korbit—which together serve roughly 11 million users. Regulators at the Financial Services Commission (FSC) say the measures are intended to curb concentrated influence by founders and major shareholders, and are considering a framework modeled on rules for alternative trading systems (ATS) under the Capital Markets Act. Yonhap News reported that the Digital Asset eXchange Alliance (DAXA)—which includes the four exchanges above as well as Gopax—has warned the proposed governance restrictions could slow the growth of South Korea’s crypto industry. The group argued the changes would dilute the accountability of a clear controlling shareholder, particularly regarding custody and management of customers’ digital assets. DAXA urged regulators to adopt a framework aligned with global standards, warning that stricter caps could increase uncertainty for startups and discourage entrepreneurship and investment. Investors pour $2.4B into overseas crypto ETFsThe lack of domestically available spot crypto ETFs has also driven Korean investors to seek exposure overseas. According to the Korea Securities Depository, as cited by Edaily, Korean investors bought a net $2.37 billion of foreign crypto ETFs between Jan. 13, 2025, and Jan. 12, 2026, placing these products among the top 50 overseas securities by net purchases over the period. Those purchases included a mix of spot-linked products, crypto futures–based instruments, and funds tracking companies that hold digital assets on their balance sheets. Several of the most heavily purchased products involved leverage or options-based strategies, including the T-REX 2x Long BMNR Daily Target ETF ($573.1 million) and the YieldMax MSTR Option Income ETF ($493.9 million). Leverage-heavy demand has been a recurring feature of Korean retail trading. In an October report, Bloomberg noted that prospective homebuyers have increasingly turned to crypto in hopes of building capital, fueling appetite for higher-risk altcoins. Such tokens account for more than 80% of trading volume on local exchanges.