Dtcpay Looks to Extend Crypto Payment Services to Hong Kong

Forkast Labs streamlines operations following mergerForkast Labs, a crypto media and data intelligence firm, has streamlined and consolidated its operations in the wake of a merger which was carried out earlier this year.CryptoSlam mergerIn January, Forkast News, a Web3 media publication which had been founded in Hong Kong, merged with United States-based blockchain analytics firm CryptoSlam. The merger led to the formation of a newly branded entity known as Forkast Labs — a “Web3-focused data intelligence and media platform.”Forkast Labs’ merger with CryptoSlam brought together their respective strengths, with CryptoSlam specializing in non-fungible token (NFT) data tracking since its establishment in 2018. In January 2022, CryptoSlam secured $9 million in funding, led by Animoca Brands. It is worth noting that Forkast.News is also a portfolio company of Animoca, with Yat Siu, the founder and executive chairman of Animoca, overseeing the merger process.Photo by Possessed Photography on UnsplashStrategic pivotThe tie-up aimed to create a synergy between data intelligence and media in the cryptocurrency space. According to a report by The Block on Friday, recent developments suggest a potential pivot away from traditional editorial operations. Citing a Forkast Labs internal memo that the publication claimed had been shared with it, the memo stated:“There will be an increased focus on the data side going forward, and the collective team will be focused on launching new data products.”With that change of direction, it’s understood that some editorial staff have been laid off. The internal company memo went on to state that “the majority of editorial operations have been incorporated into Forkast Labs as a result of the merger between Forkast and CryptoSlam earlier this year.”The original crypto news site Forkast.News was co-founded by former Bloomberg anchor Angie Lau and former McKinsey consultant Sarah Chang in Hong Kong in 2018. The company raised $1.7 million in a seed funding round in 2021. In the wake of the January merger, the company had expanded its offerings in subsequent months with the release of indices, including the Forkast 500 NFT Index. Additionally, a partnership with The Sandbox in June aimed to “index the metaverse.”Consolidation trendThe changes effected by Forkast News and subsequently Forkast Labs are very much in line with a recent trend evidenced relative to crypto media. The Block carried out a reorganization in March that saw the firm layoff 27 staff, accounting for around one-third of its workforce. Last month, the media outlet was sold to Singapore-based venture capital group, Foresight Ventures, with a valuation of $70 million.Another prominent crypto media platform, CoinDesk, carried out an editorial staff reduction in August. It was subsequently acquired last month by cryptocurrency exchange platform Bullish in an all-cash deal led by former New York Stock Exchange President Tom Farley. Bullish is also one of three bidders in the running to buy out failed crypto exchange FTX.The evolving dynamics in the crypto media sector underscore the industry’s adaptability and pursuit of new avenues. In this instance, it demonstrates the pursuit of a data-focused business proposition amid changing market demands.

The Korea Customs Service (KCS) is preparing to establish a dedicated task force to combat the surge in cryptocurrency-related crimes. According to a report by local media outlet Joseilbo, this initiative was deliberated in a meeting chaired by KCS Commissioner Ko Kwang-hyo, specifically convened to discuss strategies against foreign exchange violations. The KCS reported that last year, it uncovered a total of 198 criminal incidents related to foreign exchange activities, with the combined value reaching approximately KRW 1.9 trillion ($1.4 billion).Photo by Mathew Schwartz on UnsplashCrypto involved in 88% of forex violations Of the total amount mentioned, violations of the Foreign Exchange Transaction Act comprised KRW 1.654 trillion, with 88% of these incidents involving virtual assets. This represents a dramatic surge in the involvement of virtual assets in financial crimes, especially when compared to 2020, where crypto-related offenses constituted 3% of the total value linked to forex violations. This trend underscores the rapidly growing role of virtual assets in such illicit activities. To address these issues, the KCS is set to broaden its crackdown on illicit cryptocurrency activities. This crackdown targets practices such as transferring foreign currency overseas to acquire virtual assets for arbitrage trading and using virtual assets to conceal trade payments, thereby attempting to bypass customs duties.Task force’s international collaborationAs part of this initiative, the country's customs agency aims to build a task force focused on tackling crypto crimes. This specialized group will be responsible for gathering and analyzing data, conducting investigations and recommending regulatory enhancements. The task force will collaborate with financial regulators to obtain crypto transaction records from domestic cryptocurrency exchanges. Moreover, it will work with customs authorities of other countries, including Hong Kong, to collect details on crypto transactions conducted abroad. 

Police Crack Down on JPEX Continues with Millions RecoveredHong Kong authorities are intensifying their efforts to deliver justice to victims of the JPEX cryptocurrency exchange fraud, a scandal that has left thousands of investors in distress.According to recent reports in the South China Morning Post (SCMP) on Wednesday and Friday, more arrests have been made, with the recovery of more assets. The pursuit of those responsible for orchestrating this massive scam is in full swing.Photo by RJ Joquico on UnsplashLargest digital asset fraud in Hong Kong historyThe Dubai-headquartered JPEX crypto exchange, an unauthorized platform, stands accused of defrauding more than 2,400 individuals of nearly $200 million, marking it as the largest digital asset fraud case in Hong Kong’s history. During a recent press conference, the Secretary for Security of Hong Kong, Chris Tang Ping-keung, expressed his commitment to ensuring justice prevails for the victims.Tang revealed that among the assets seized by the police were more than HK$8 million ($1 million) in cash and assets valued at HK$77 million ($9.8 million), including real estate and digital currency. These significant seizures mark a pivotal step in the ongoing investigation. Furthermore, the police have apprehended 12 individuals connected to the JPEX scheme, including three employees of JPEX Technical Support Company and two YouTubers.The first signs of trouble emerged when JPEX users faced difficulties in withdrawing their funds on September 15. In response to mounting complaints and regulatory warnings, JPEX infamously raised its withdrawal fees to 999 Tether in a desperate attempt to discourage users from withdrawing funds. This maneuver raised suspicion and intensified the scrutiny on the exchange.Ongoing investigationLocal authorities in Hong Kong have been inundated with 2,369 complaints from victims who lost their investments in the unregulated exchange. The estimated total monetary loss is HK$1.4 billion ($178 million). While the police continue towards bringing those responsible to justice, they are also collaborating closely with regulators to implement measures aimed at preventing the emergence of such fraudulent schemes in the future.Recent developments have seen the net tighten around the individuals connected to JPEX. Additional arrests have been made in Hong Kong and Macao. Hong Kong police apprehended two individuals who were caught attempting to destroy documents with paper shredders and bleach. In addition, they seized almost HK$9 million ($1.15 million) in cash and gold from three apartments.Meanwhile, Macao authorities apprehended two more individuals and confiscated over HK$14 million ($1.8 million) in cash and valuables. The suspects had made multiple visits to Macau this month, which may be linked to their illicit activities.Hong Kong’s Securities and Futures Commission (SFC) had issued a prior warning, stating that JPEX operated without the necessary licenses and had maliciously frozen users’ funds. Last week, the SFC took a step further, blocking access to web and mobile versions of the platform with JPEX responding by encouraging users to sidestep the measure through the use of VPN.