Japan’s HashPort Group Raises $8.5M in Funding Round

A United Nations (UN) report published on Monday pointed fingers at USDT for its alleged role in money laundering and scams in Southeast Asia, prompting the stablecoin’s issuer, Tether, to respond.Photo by DrawKit Illustrations on UnsplashFighting backThe stablecoin issuer finds itself under the spotlight once again, facing intense scrutiny over its association with illicit activities, according to the UN report. Responding by way of a blog post, Tether expressed disappointment and pushed back against the accusations. The firm asserted that the report disproportionately focuses on USDT's alleged connection to illicit activities, neglecting to acknowledge the positive impact it has had on developing economies in emerging markets. Collaborating with law enforcementTether defended its position by highlighting its collaborative efforts with global law enforcement agencies, such as the Department of Justice (DOJ), the Federal Bureau of Investigation (FBI) and the recently onboarded United States Secret Service (USSS). The company expressed disappointment with the UN's assessment and stressed that its monitoring measures surpass those of traditional banking systems, historically implicated in money laundering cases. Having frozen over $300 million in recent months to combat the criminal use of crypto assets, Tether emphasized the traceability of its tokens and its established track record of collaboration with law enforcement. In its blog post, Tether urged the UN to shift the conversation from concentrating solely on risks to discussing how centralized stablecoins like USDT could contribute to the fight against financial crimes. The UN Office for Drugs and Crime (UNODC) division responsible for Southeast Asia and the Pacific released the report, specifically highlighting USDT as a significant instrument for money laundering in the region, notably on the Tron blockchain. Tether's response came soon after the release of the UNODC report, where the company emphasized the need for a broader discussion with the UN on addressing financial crimes within blockchain platforms. Tether acknowledged that there are still numerous opportunities to combat financial crimes on blockchain platforms and encouraged the UN to engage with the industry to comprehend and implement contemporary strategies. The company expressed a willingness to collaborate on initiatives aimed at enhancing the understanding of blockchain technology and its potential in fighting financial crime. A perennial controversyTether has been the subject of a perennial controversy inside and outside the crypto space over the years. Its critics have long accused the company of not having the asset backing to reflect the U.S. dollar stablecoins it issues. The issue has been compounded by Tether’s inability to produce fully fledged audits as opposed to attestation reports to verify its holdings. Speaking on the edges of the World Economic Forum’s annual meeting in Davos, Switzerland, on Tuesday, Howard Lutnick, CEO of leading global financial services firm Cantor Fitzgerald spoke positively about Tether. He said that his firm has held and managed large quantities of Tether’s assets. Lutnick confirmed that “they have the money they say they have.” Off the back of Lutnick’s comments, Nic Carter, partner at venture capital and private equity firm Castle Island Ventures, outlined that Tether’s critics have been proven wrong. Carter wrote: “Tether truthers spent 6 years trying to convince everyone tether would collapse and drag down the industry. it didn't. . . . Not sure anyone has ever been more wrong about anything.”

Raon Whitehat Launches Cloud-Based NFT Wallet for OmniOne MarketplaceSouth Korean tech security firm RaonSecure announced Thursday that its subsidiary Raon Whitehat has launched a cloud-based NFT wallet service on the OmniOne NFT marketplace, specializing in utility NFTs that are backed by tangible assets like gold.Photo by C Dustin on UnsplashMore secure and convenientUsers can easily create an account for the OmniOne NFT cloud wallet by entering a username and password. This cloud-based solution offers advantages over mobile app-based NFT wallets, which can present occasional inconveniences. In scenarios involving app deletion, device change, or device loss, one faces the cumbersome task of reinstalling the application and going through the authorization process again. In contrast, the cloud wallet provides a more seamless experience. NFTs are securely stored in the cloud and can be accessed from any device, requiring only the recollection of a username and password.Transferring NFTsIndividuals who have NFTs stored within their current app-based NFT wallet can create a new cloud wallet account and proceed to transfer their NFTs from the existing app-based account to the new cloud account by utilizing the “Send as Gift” feature.RaonSecure CEO Lee Soon-hyung announced that users are now able to store their gold-backed NFTs, purchased from the OmniOne NFT marketplace, in the cloud wallet. He explained that this development addresses the issue of potential NFT asset loss due to app deletion or device loss.Furthermore, Lee emphasized that Raon Whitehat is dedicated to introducing more innovative services in the future. These services will prioritize user convenience and security, specifically in the storage of diverse digital assets like NFTs and certification badges.

Further JPEX Controversy Due to DAO PlanDubai-headquartered crypto exchange JPEX, which has recently found itself at the center of controversy in Hong Kong, has moved forward with a plan to transition the platform into a decentralized autonomous organization (DAO).Photo by Clint Adair on UnsplashDisputed voting outcomeThe firm’s management envisages converting user assets into dividend shares, with an incentive to lock them up for two years. While the exchange claims that the majority of its users voted in favor of the plan, some users are alleging that their assets have been converted without their knowledge or consent.The company announced the outcome of its DAO Shareholder Dividend Scheme referendum on its website on Wednesday. According to JPEX, voting on the program concluded on September 28. The company alleges that 68% of users voted to support the proposed scheme.Asset conversionUnder this plan, users can convert their currently frozen assets into DAO Stakeholder dividends at a 1:1 ratio. JPEX also offers a repurchase option at 30% of the conversion price after one year and a 100% repurchase option after two years.In a prior announcement, JPEX stated that users who agreed to the scheme would receive dividends from the exchange through a new token listing, trading fees, and a distribution of JPEX Coin (JPC), the platform’s native token, in proportion to their shareholder dividends.The scheme seems to encourage users to keep their funds on the exchange, which has been grappling with liquidity issues. Previously, the exchange had taken to putting in place unreasonably high withdrawal fees to discourage users from attempting to withdraw their funds from the platform.Ongoing falloutThere has been ongoing fallout from the exchange businesses' difficulties over recent weeks. At first, a number of influencers who had promoted the exchange were arrested. Later, Hong Kong regulators suggested they were giving further scrutiny to crypto trading regulations in light of the scandal.Further arrests were made in connection with the exchange’s activities. Regulators have suggested that they would create a public listing of platforms that are actually regulated within the Chinese autonomous territory and the licensing status of those businesses. On Thursday the South China Morning Post (SCMP) reported that a further six people have been arrested in relation to the scandal, including the company’s CEO.In another report on Wednesday the SCMP had cited one platform user who maintained that her assets had already been converted to JPC tokens without her consent or prior knowledge. She and other users discovered that they could no longer withdraw their assets following JPEX’s announcement to proceed with the plan.“All of my [Tether] USDT and other cryptocurrencies are gone, all transferred to JPC,” she lamented, noting that her assets had been converted to JPC, a token with low liquidity and limited use cases. She expressed concern about the unknown price of JPC and the inability to withdraw, suggesting their assets had become worthless.On Wednesday, Hong Kong’s police and securities regulator jointly launched a crypto-focused task force aimed at combating illicit activities by cryptocurrency exchanges in the region.