Survey Reveals 45.9% of Korean Crypto Investors Reporting Losses

Terraform Labs fails to halt class action lawsuitThe High Court in Singapore has dismissed an appeal filed by Terraform Labs and its co-founders, marking a significant step forward for the plaintiffs behind a class action initiated against the company.That’s according to a report published by Singaporean publication, the Business Times, on Thursday. The legal development follows the collapse of TerraUSD (UST) tokens in May of 2022, resulting in the loss of billions of dollars in market value. The collapse, in turn, has led to several lawsuits against Terraform, its founders and affiliated entities, with those court actions playing out in courtrooms in Singapore, South Korea, Montenegro and the United States.Photo by Wesley Tingey on UnsplashFraudulent misrepresentation allegedThe class-action suit, initiated in September 2022 by Julian Moreno Beltran and Douglas Gan on behalf of 375 others, alleges fraudulent misrepresentation by Terraform, Co-Founders Do Kwon and Nikolaos Alexandros Platias and the Luna Foundation Guard (LFG). The claimants argue that these misrepresentations induced them to purchase UST, stake the tokens and retain them as their value plummeted.UST had been designed to be pegged to the U.S. dollar with a 1:1 ratio. However, flaws in the tokenomics behind that digital asset meant that it faced a loss of confidence in May 2022, trading at around $0.05 when the court’s decision was released. The claimants collectively suffered losses of nearly $57 million.Terms of use cited in attempt to dismissTerraform attempted to have the lawsuit dismissed by invoking an arbitration clause in its website’s terms of use, asserting that users had waived their rights to a jury trial or participation in a class action. However, the Assistant Registrar (AR) rejected this application, stating that the defendants failed to establish an arbitration agreement.The AR highlighted that the terms of use were inconspicuous on the website, and there was insufficient effort to draw users’ attention to those clauses. Terraform, Kwon and associated entities appealed this decision, which was heard by Justice Hri Kumar Nair on Sept. 25.Despite establishing a prima facie case for an arbitration agreement, the court ruled that Terraform’s participation in the legal proceedings, including filing a defense and counterclaim, meant it could no longer seek a stay in favor of arbitration.Multiple actionsIt’s a busy time for all stakeholders relative to the Terraform collapse. Playing out within the same timeframe is a lawsuit in the United States taken by the Securities and Exchange Commission (SEC) against Terraform and Do Kwon, where the SEC claims that crypto asset securities fraud has been carried out.The latest installments in that saga in recent weeks have seen both parties file to seek summary judgment. Last week, a court in New York approved the confidential treatment of specific documentation which had been produced by Jump Crypto, a division of proprietary trading firm Jump Trading.There are also criminal actions underway. In a South Korean court in October, Terraform Labs Co-Founder Daniel Shin denied wrongdoing in the Terra/Luna collapse. Meanwhile, a court in Montenegro has approved the extradition of Do Kwon, with a final decision to be made shortly as regards whether he should be extradited to the United States or South Korea.

PantherTrade applies for Hong Kong trading licensePantherTrade (Hong Kong) Limited, a subsidiary of Futu Holdings, had been reported last month as being in the process of preparing a licensing application to trade in Hong Kong. According to recent reports in local media, it appears that the company has now submitted such an application to the Hong Kong authorities.Photo by Simon Zhu on UnsplashKey appointmentsThis move aligns with the broader trend, as a total of six companies have submitted applications to the Securities and Futures Commission (SFC) of Hong Kong. It’s understood that PantherTrade submitted its application on Nov. 15. The move follows a similar application made by Hong Kong-based Meex Holdings on Oct. 12.Key strategic appointments within PantherTrade underscore the company’s vision for its virtual asset trading venture. Chen Zhihu, former Investment Director at Huobi Asset Management (Hong Kong), has joined as a director. The corporate establishment of PantherTrade in March also saw the addition of Hong Yimin, while the initial director, Fang Xingzhi, has a background with Jingdong Securities Co., Ltd.Interest from mainland ChinaRegulatory attention has intensified on PantherTrade and another applicant, Yax, affiliated with Tiger Brokers employees, according to reports from Nikkei Asia. Yax is another platform with mainland China ties, which was reported in October as intending to apply for a license to trade within Hong Kong.It’s understood that the local entity of Chinese enterprise blockchain firm OK Group, OKX Hong Kong FinTech Company Limited, submitted its own trading license application on Nov. 16.Licensing uptakeHong Kong’s regulatory environment has undergone a significant shift, with the city granting the first licenses to cryptocurrency companies under a new framework in August of the current year. The regulatory changes, effective in 2023, allow retail investors to trade crypto on exchanges licensed by the SFC. Importantly, the city has removed the restriction on crypto trading, no longer confining it to professionals with a minimum of $1 million in bankable assets.This regulatory evolution is part of Hong Kong’s broader strategy to position itself as an international hub for cryptocurrencies. The city aims to attract fresh capital and talent, especially in the aftermath of the pandemic. The licensing race among virtual asset trading platforms signifies a pivotal phase in Hong Kong’s vision to lead the digital asset industry in Asia.There had been some short-lived concern that momentum was moving against Hong Kong’s efforts to further the Web3 sector when it emerged recently that crypto derivatives platform Bitget was exiting the Hong Kong market and abandoning efforts to secure a trading license. That concern dissipated when Bitget’s motivations became clearer, following BGX, a related Bitget entity, making an investment into BC Technology Group, the owner of the already Hong Kong-licensed OSL exchange.PantherTrade’s application for a virtual asset exchange license in Hong Kong adds momentum to the city’s evolving crypto landscape. The strategic hires and the broader industry trend highlight the growing significance of Hong Kong in the global digital asset arena. As the regulatory framework becomes more conducive, the city aims to foster innovation and become a key player in the international crypto space.

The Busan Port Authority (BPA) recently announced its plan to deploy a blockchain-based transshipment monitoring system known as Port-i at the port of Busan, located in the southern part of South Korea, according to local news outlet Financial News. The Port-i system is designed to streamline the management of transshipment cargo for shipping companies at Busan Port, which handles about 12.4 million twenty-foot equivalent units (TEUs) annually. The system is set for a pilot phase in January 2025, with plans to expand it to all shipping companies using the port by the second half of 2025.Photo by Christopher Lee on UnsplashEnhancing efficiency and profitability in shippingWith Port-i, shipping companies will be able to track ships and cargo through the Chain Portal, Busan Port’s integrated logistics platform. Port-i will provide a unified view of berth schedules across all terminals at the port, addressing the current issue where companies have to separately check ship and cargo statuses and independently identify berth schedules at different terminals. The BPA expects that the Port-i service will allow shipping companies to manage transshipment cargo more efficiently, improve ship loading rates and potentially increase profits. Blockchain for coffee quality controlIn addition to the Port-i initiative, Busan is also exploring other uses of blockchain technology for industrial development. The city recently set up the Busan Coffee R&D Lab, backed by the Ministry of Science and ICT, as reported by Metro.  This facility aims to use blockchain to create a platform that enhances the logistics of coffee sourcing and production, including a system that assigns unique identification to coffee products. It will provide reliable data required to control taste and quality. By integrating blockchain with artificial intelligence and advanced logistics techniques, Busan is positioning itself at the forefront of the coffee industry with innovative business models.