Circle CEO Sees Role for Yuan-Backed Stablecoins in Hong Kong

Civic Group Files Embezzlement Complaint Against Former Kakao Chairman Over KLAY TokensA South Korean civic group, known as Economic Democracy 21, filed on Wednesday a prosecution complaint against Kim Beom-soo, the former chairman of the internet giant Kakao, and several executives from Kakao’s affiliated companies. The allegations at hand pertain to embezzlement, specifically revolving around the virtual asset known as KLAY.Photo by Tingey Injury Law Firm on UnsplashKlaytn’s native tokenKLAY represents the native token of the Klaytn blockchain, which was developed by GroundX, a blockchain subsidiary of Kakao.Legal breach claimsThe complaint, formally submitted to the joint crypto-crime investigation division of the Seoul Southern District Prosecutors’ Office, asserts that Kakao executives have breached the Act on the Aggravated Punishment of Specific Economic Crimes and the Capital Markets Act.Clandestine pre-salesWithin the detailed complaint, Economic Democracy 21 alleges that following the issuance of KLAY, Kakao’s executives conducted private pre-sales of KLAY tokens before their official listing. These pre-sales activities reportedly raised between KRW 150 billion and 300 billion ($113 million and $226 million). The accusation is that these funds were not channeled into business endeavors, but rather diverted for personal use.The complaint also contends that Kim and other executives withdrew KLAY tokens from the company under the guise of investments, compensation, and service fees related to “overseas investment business” since 2022. The civic group further asserted that these corporate leaders employed a program to manipulate transaction records, presumably with the intent of preventing third parties from discovering the nature of these transactions.

Blockchain Tech Enhances Korean Meat Industry’s Trading SystemThe Korean meat industry is leveraging blockchain technology to optimize its meat trading system.©Pexels/mali maederOn Tuesday, the MOOxMOO Foundation, a Korean blockchain-driven supply chain management provider, announced its strategic partnership with meat processing company PMD, according to the Maeil Business Newspaper.Inefficient distributionThe partnership aims to enhance the transparency of the meat trading system and address issues of inefficient intermediary distribution, particularly regarding payments, settlements, and deliveries. This goal will be achieved through the foundation’s meat trading platform MOOxDEAL, which will utilize soulbound tokens (SBTs) to verify identities of supply chain participants.Rising meat demandThe OECD-FAO Agricultural Outlook 2022–2031 stated that in 2021, world meat imports are estimated to have reached 40 million metric tons (Mt), with poultry imports leading the way. Brazil, the European Union and the United States were among the top meat exporting countries, meeting a significant portion of the increased import demand.Meat consumption is projected to grow by 15% by 2031, driven by an expected 11% increase in the global population. Global meat supply is projected to reach 377 Mt by 2031, though growth will not be as rapid as the previous decade.The amount of protein available from poultry, pork, and beef is expected to increase globally by 16%, 17%, and 8%, respectively, by 2031, with poultry being the main contributor to overall meat production growth. The majority of meat production growth is set to occur in developing regions.Costs onto consumersDespite increasing global meat production, the unsuitable distribution structure in Korea may shift costs onto consumers.Through the partnership, the MOOxMOO Foundation looks forward to addressing the inefficiencies of intermediary distribution and benefiting consumers. The foundation also envisions its platform contributing to the Korean meat industry by optimizing both business to business (B2B) and business to consumer (B2C) trading.

South Korea’s National Police Agency will assign all 41 narcotics investigators recruited during the second half of the year to cryptocurrency-related duties, according to News1. The move follows the creation of a dedicated “Virtual Asset Analysis and Investigation Team” aimed at tackling drug offenses that use digital assets. To bolster skills, the agency plans specialist training for investigators from Sept. 29 to Oct. 2. Of the 41 recruits, 11 will staff an analysis unit and 30 will join field investigations. The analysis team, based at the Seoul Metropolitan Police Agency, will handle crypto-related drug cases nationwide, generate intelligence, and support phishing probes involving digital assets. The investigation group will be deployed to five regional headquarters (Seoul, Busan, Incheon, southern Gyeonggi, and southern Gyeongsang) to target illicit crypto payment processors and the money launderers behind them.Photo by Scott Rodgerson on UnsplashLatest crypto seizure in UK drug caseThe push mirrors trends overseas. In the U.K., Devon and Cornwall Police said detectives seized £1.3 million (about $1.76 million) in cryptocurrency from Ryan Coleman, 36, who received a 15-year sentence after admitting to supplying cocaine, ecstasy, cannabis, and ketamine via the dark web. Police indicated the seized assets are expected to fund proactive operations and community initiatives, with half allocated to HM Treasury. Cartels turn to crypto in North AmericaNorth American authorities report similar challenges. In a January 2025 post, blockchain intelligence platform TRM Labs pointed to the growing use of cryptocurrencies by Mexican drug cartels and other transnational groups. It noted that an executive order signed by President Trump earlier this year allows U.S. law enforcement to freeze crypto wallets linked to these organizations. The post also outlined laundering pipelines that rely on Chinese money brokers, who convert U.S. cash into crypto for global transfers or for buying precursor chemicals. The scale of these flows is underscored by TRM’s September 2024 research, which estimated that Chinese drug-precursor manufacturers took in over $26 million in crypto in 2023, a 600% jump from the year before. In the first four months of 2024, receipts nearly doubled year-over-year. Roughly 60% of these payments were made in Bitcoin, 30% in TRON, and 6% in Ethereum. The analysis also noted that U.S. cryptocurrency ATMs transferred more than $170,000 directly to Chinese precursor vendors in 2023, modest in scale but valuable for investigators. Freezing stablecoins and tracing Chinese linksWhile targeted sanctions and blockchain tracing have disrupted parts of the network, traffickers remain agile, TRM noted. It underscored the need for continued vigilance, technological adaptation, and cross-border coordination. Suggested steps include freezing cartel-linked stablecoins, tightening U.S. cash-to-bank laundering controls, and using legal tools like the Patriot Act to trace Chinese firms and accounts involved in laundering. South Korea’s redeployment of personnel reflects this push to align national enforcement with evolving enforcement dynamics.