OKX Enters Final Stages of Securing VASP License in Hong Kong

Hashed CEO Emphasizes South Korea’s Potential to Lead Mass Adoption of Web3 in AsiaSimon Kim, CEO of Asian blockchain investment firm Hashed, highlighted South Korea’s potential to pioneer the mass adoption of Web3 during his keynote speech on Tuesday at Impact, the main conference of Korea Blockchain Week 2023 held at the Shilla Hotel in Seoul.“Korea possesses the strength to lead despite its small size,” he said. “The country will serve as the turning point for Web3.”Photo by Daniel Bernard on UnsplashTech trailblazerKim elaborated on the unique characteristics of Korea’s Web3 ecosystem, citing the so-called “kimchi premium” phenomenon, where cryptocurrencies in Korea are valued higher than other global exchanges, as well as the country’s role in leading altcoin price fluctuations and bull markets.Furthermore, Korea also has one of the world’s fastest and most widespread high-speed Internet networks, with nearly 100% coverage and a smartphone penetration rate exceeding 97%.According to Kim, digital natives are the driving force behind many inventions that have marked the country as a longstanding hub of innovation and digitization. Among these inventions is the world’s first online game, The Kingdom of the Winds, and the world’s first avatar-based social platform Freechal, as well as the pioneering e-sports league StarCraft League and game item trading platform itemBay.In particular, Freechal can be deemed as a forerunner to the current trend of using non-fungible tokens (NFTs) as profile pictures on social media. itemBay also serves as the precursor to both virtual asset and NFT exchanges. These types of early ventures are inextricably linked to the rise of cryptocurrency exchanges.Kim went on to underscore Korea’s prowess in the gaming industry, mentioning popular games like Dungeon Fighter Online, MapleStory, and PlayerUnknown’s Battlegrounds (PUBG). He noted that many local game developers have already established Web3 studios and are actively preparing to transition to the world of Web3 gaming. The K-pop industry has also been incorporating Web3 technology in various projects.Merging hemispheresHashed has been actively investing in projects since 2016, with over 150 projects in its extensive portfolio. Of these projects, approximately 71% of those based in Western countries are related to infrastructure, while 67% of those based in Eastern countries are related to digital content and apps. The company ultimately aims to serve as a bridge connecting the East and West by acting as a network builder to facilitate this exchange, Kim said.

Beosin Report: Crypto Rug Pulls Surpass DeFi Exploits in MayAccording to a recent report by blockchain security firm Beosin, losses from “rug pulls” or “exit scams” in the cryptocurrency space exceeded the amount stolen from decentralized finance (DeFi) projects during the month of May.The report, published on June 1 by Beosin Blockchain Security, revealed that rug pulls and scams resulted in losses of over $45 million across six incidents during the month. Beosin is headquartered in Chengdu, in China’s Sichuan province. The firm uses formal verification methods to secure smart contracts.In general there were 22 security incidents in the digital assets space over the course of the month. That overall figure accounts for losses totaling $20 million, and represents a vast improvement on the previous month.Three of the incidents were accounted for by security issues related to hardware wallets such as the Trezor and imKey wallets. Six were rug pulls/crypto scams, two were crypto crime incidents while another implicated a critical vulnerability relative to zero-knowledge proof technology.Photo by Tara Winstead on PexelsDeFi protocol attacksIn contrast, there were 10 attacks on DeFi protocols, amounting to $19.7 million in stolen funds. This figure represents a significant decrease of nearly 80% compared to April, and the losses from these types of exploits had been declining for two consecutive months, as per Beosin’s findings.The largest rug pull incident in May involved the alleged disappearance of $32 million associated with the crypto project Fintoch on May 24. Meanwhile, the largest attack on a DeFi platform was a $7.5 million breach targeting Jimbos protocol, according to Beosin’s report.Shifting hacker strategyBeosin noted a shift in the targeting strategy of hackers and scammers, who are now increasingly focusing their attacks on ordinary users rather than various project parties. To mitigate risks, the report recommended that crypto users enhance their anti-fraud awareness, conduct thorough due diligence before investing in projects, and learn how to improve the security of their digital assets.The report also issued a warning against using shared or public charging devices for mobile phones. Beosin highlighted the potential risks associated with these devices, as they could be manipulated to inject malicious programs that compromise private keys. This caution aligns with a similar advisory issued by the United States Federal Bureau of Investigation (FBI) in April.The FBI’s Denver office cautioned against using public USB ports, including those found at airports, due to the potential introduction of malware and monitoring software onto devices. Instead, they suggested carrying a personal charger and USB cord for use with electrical outlets.As the cryptocurrency landscape continues to evolve, it is crucial for users to remain vigilant and proactive in safeguarding their investments. With the rise of rug pulls and the ongoing threats in the DeFi space, staying informed, exercising caution, and adopting robust security measures are essential for protecting one’s digital assets in this rapidly changing industry.

Chinese Official Gets Life Sentence on Crypto Mining-Related Corruption ChargesA former Chinese government official, Xiao Yi, has been handed a life sentence for engaging in illicit business activities connected to a $329 million Bitcoin mining venture, together with other unrelated acts of corruption, according to Cointelegraph.The Intermediate People’s Court of Hangzhou City declared the verdict on Tuesday, finding Xiao Yi guilty of corruption and abuse of power.Yi, previously associated with the Jiangxi Provincial Political Consultative Conference Party Group and holding the position of Vice Chairman, faced charges stemming from a range of offenses. The corruption allegations dated back to 2008 and extended till 2021, involving instances of bribery.Photo by Tingey Injury Law Firm on UnsplashAdditional abuse of power chargesSimultaneously, the abuse of power accusations spanned from 2017 to 2021 and centered around providing financial and electricity incentives to Jiumu Group Genesis Technology, a company headquartered in Fuzhou that once managed over 160,000 Bitcoin mining machines.Prosecutors contended that Yi took deliberate steps to conceal the extent of the mining operation. He was said to have directed relevant departments to falsify statistical reports and manipulate electricity consumption classifications. During the period between 2017 and 2020, the energy consumption attributed to Jiumu amounted to 10% of Fuzhou’s overall electricity usage.Moreover, Xiao Yi’s involvement in facilitating crypto mining activities as a Party Secretary of Fuzhou city between 2017 and 2021 led to significant losses to public property, national interests, and people’s interests. This underscores the broader consequences associated with his actions and their impact on the community.The court ruling disclosed: “Yi pleaded guilty and repented, actively returned the stolen funds, and all the bribes and their profits have been seized.”Crypto mining and trading prohibitionIn the context of China’s current cryptocurrency regulatory stance, all forms of cryptocurrency transactions, exchange operations, and fiat-to-crypto onboarding, together with crypto mining, are prohibited. However, direct ownership of cryptocurrencies is not explicitly banned. In a recent development on August 3, a Chinese court declared a $10 million Bitcoin lending contract null and void based on the nation’s Bitcoin restrictions, without the possibility of legal debt recovery.Another incident on August 14 led to the sentencing of a Chinese national to nine months in prison for facilitating the acquisition of Tether (USDT) by an acquaintance, earning a profit from the transaction.Xiao Yi’s case reflects the Chinese government’s ongoing efforts to enforce its stringent stance on cryptocurrency-related activities, including Bitcoin mining, which has garnered increasing attention due to its energy consumption and potential economic implications.Bitcoin mining was outlawed in China in 2021. Many of its miners left the country, establishing operations in places like Kazakhstan and in North America. However, it’s understood that there is still a significant level of mining activity ongoing in China despite the ban.The life sentence serves as a stark warning against illegal Bitcoin mining and financial misconduct, aligning with the Chinese government’s intention to maintain control over its financial sector and prevent unauthorized financial activities. The detailed revelations about Yi’s role in facilitating crypto mining activities highlight the broader implications of his actions on the public and national interests.