Blockchain Firm NEOPLY Rebrands as Neowiz Partners to Focus on Investment

Singapore-regulated Telcoin, a developer of financial applications for mobile users, has successfully restored user balances following an exploit that saw approximately $1.2 million worth of funds transferred from affected accounts.Photo by Martin Sanchez on UnsplashUnauthorized withdrawal of assetsThe incident, which occurred in late December, was attributed to an error in the interaction between Telcoin's digital wallet and a proxy contract on Polygon. In a blog post which was published on Wednesday, the company shared a full post-mortem analysis report which it commissioned Hong Kong-based blockchain security firm BlockSec to carry out, relative to the exploit. The fault in the proxy contract's implementation caused a technical conflict that allowed for the unauthorized withdrawal of assets. Fortunately, no admin keys were compromised, ensuring that the broader Telcoin ecosystem remained unaffected. In response to the security breach, Telcoin took action by immediately freezing the use of its application as a precautionary measure. The team initiated an investigation and committed to releasing updates promptly to address the issue and restore normalcy. The identified address associated with the exploit was 0x35d2775e5f95596509951b140d68fc5b9185ff98. TEL token freefallDespite the initial market turbulence, with the price of the Telcoin (TEL) token plummeting, the cryptocurrency has demonstrated resilience. On Dec. 25, TEL fell from a peak price of $0.00235146 to $0.00122535, representing a 48% decrease. At the time of writing, the price has slightly rebounded, trading at $0.001335. Nevertheless, it's still down 40% over the course of the past month's trading. In a social media direct message to CoinDesk recently, Telcoin's founder and CEO, Paul Neuner, expressed pride in how his team responded to the issue, stating: “Making the decision to preemptively restore affected user wallets from our company treasury was a no-brainer, and I’m proud of the team for making that happen in record time.” Regulatory standingTelcoin's regulatory standing played a crucial role in instilling confidence during this challenging time. Although headquartered in Tokyo, the company is regulated in Singapore as a Major Payment Institution (MPI) by the Monetary Authority of Singapore (MAS). The firm is also registered and regulated in other global markets, including Canada and Australia. Telcoin maintains offices in Singapore, Tokyo, Dubai and Los Angeles. The company had been active in trying to shape regulation in the United States in 2023, with company executives having made repeated visits to Washington D.C. to meet with Financial Services Committee members and staffers on Capitol Hill. In April of last year, the company extended its service offering to the European market, starting out initially in Lithuania.It appears that the restoration of Telcoin's application services led to a significant boost in user confidence. The company reported a 400% increase in deposits compared to the previous month. Users responded favorably to Telcoin's swift resolution of the security breach, with a ratio of $3.60 being deposited for every $1 withdrawn in the first day since the service restoration. Telcoin's measures, collaboration with security experts and the surge in user deposits appear to have resulted in a resilient recovery. The saga highlights the importance of prompt and transparent responses in maintaining trust in the face of crypto security issues.  

Thailand has taken steps to tighten controls on digital asset mule accounts and overseas crypto peer-to-peer (P2P) platforms in an effort to combat cybercrime.Photo by Growtika on UnsplashLegislative amendmentsOn April 8, the Securities and Exchange Commission (SEC), a local regulator, published a statement explaining that the Thai cabinet has passed a resolution approving a number of amendments to the Southeast Asian nation’s digital asset business law and its cybercrime law. The regulator asserted that the amendments are designed to “strengthen measures against cybercrime and mule accounts, enhancing the security of public financial transactions and improving the effectiveness of combating online scams.” The amendments won’t become effective until such time as they are published in the Government Gazette of Thailand, an official public journal that acts as a primary source for Thai law. Mule accountsOne aspect that has been addressed is the enhancement of measures taken in an effort to block digital asset mule accounts. Criminals utilize mule accounts in an effort to launder the proceeds of crime.  While this happens with conventional bank accounts, it is also now happening with digital asset exchange accounts and digital asset wallets. Accounts may have been established for legitimate purposes but later fall under the influence of criminals who utilize them for money laundering. According to a report by the Bangkok Post last month, the Thai SEC had been collaborating with the Thai Digital Asset Operators Trade Association (TDO) and digital asset businesses in order to formulate these new measures.  The standard was also established following consultation with the Bank of Thailand, the Cyber Crime Investigation Bureau, Central Investigation Bureau, the Anti-Money Laundering Office and the Thai Bankers' Association. It is hoped that these enhanced mechanisms will lead to earlier detection of unusual customer behavior, enabling the authorities to intervene at an earlier stage to block mule accounts.Going forward, the regulator will collaborate with the TDO in monitoring and evaluating implementation of the new measures. Individuals who allow their digital asset accounts to be used by criminals will face up to three years' imprisonment and a fine of up to 300,000 Thai baht ($8,765). Blocking P2P platformsAnother change is being implemented in respect of offshore crypto P2P platforms. The objective of that particular measure is to deter and prevent the use of such platforms by investors within Thailand.  It’s envisaged that the Ministry of Digital Economy and Society will now be enabled to move more swiftly in blocking website and application access to these foreign P2P platforms. Such offshore platforms will be deemed to be attempting to solicit local investors if they offer payment options in Thai baht, provide online services or applications using the Thai language or if they accept payments through Thai bank accounts. Earlier this month, Thai law enforcement raided five unlicensed crypto firms. The raid led to the arrest of 11 individuals, charged with illegally operating e-money services related to enterprises responsible for a combined $29 million turnover. 

CryptoQuant and SKT Partner to Launch Blockchain-Powered T Wallet ServiceTeam Blackbird, the operator of blockchain data analysis platform CryptoQuant, revealed on October 16 (local time) a new collaboration with SK Telecom (SKT), the telecommunications arm of South Korean conglomerate SK Group.Photo by Mariia Shalabaieva on UnsplashMerging expertiseThe primary objective of this partnership is to leverage CryptoQuant’s expertise in on-chain data analysis and combine it with SK Telecom’s mobile technology capabilities to launch SKT’s T wallet service. This blockchain-powered mobile wallet application aims to provide a secure and efficient platform for users.CryptoQuant serves over 1 million traders globally and provides on-chain data to well-known institutional clients like the Chicago Mercantile Exchange (CME) Group and Moody’s Analytics.Additionally, CryptoQuant also supplies some of its on-chain data to South Korean fintech company Koscom Corp for its investment analysis information terminal service, CHECK Expert+.Expanding data accessibilityJu Ki-young, CEO of CryptoQuant, said their latest collaborative effort aligns with CryptoQuant’s mission to create a digital asset market culture that lowers entry barriers, especially regarding blockchain technology and on-chain data. Ju highlighted that this endeavor will empower retail investors with data-driven insights that have traditionally been more accessible to institutional investors. Furthermore, he noted the company’s dedication to expanding access to on-chain data through the T wallet, reaching a broader user base.Kim Jong-seung, Director at SKT, shared his enthusiasm for CryptoQuant’s on-chain data analytics. Such data-driven information, he noted, will aid everyone from digital asset novices to decentralized app (dApp) enthusiasts and advanced users in making informed decisions. He believes these developments will pave the way for a healthy digital asset market and broader adoption of Web3.