Korean Financial Regulator to Inspect Non-Fiat Crypto Trading Platform

The Korea Security Token Offering (KSTO), a South Korea-based association dedicated to providing compliance guidelines for STO projects, announced on Monday that it signed a memorandum of understanding (MOU) with blockchain company Metalab for STO mainnet development. The news was reported by local media outlet Ajunews. Through the MOU, the two institutions plan to create a blockchain platform for local blockchain companies, catering to their needs for STO issuance.Photo by Kaitlyn Baker on UnsplashThe KSTO is an association aiming to provide consultation services on STO design and development and assist blockchain projects in complying with laws and regulations, contributing to building a healthy blockchain ecosystem. Meanwhile, a member of the KSTO, Metalab is a blockchain firm with expertise in developing crypto tokens and decentralized applications, or DApps. The company is reportedly participating in an STO mainnet development project led by the KSTO.  STO infrastructure catering to Korean firms and investors Mainnet refers to the primary blockchain network where actual crypto transactions take place, such as the Ethereum or Solana platform. Mainnets, which operate on their own based on their independent infrastructures, are highly valued in the crypto markets due to the complexity of developing such networks.  This blockchain mainnet project involving Metalab will offer basic infrastructures that enable large-scale STO transactions, with plans to release features for STO issuance and management in connection with crypto wallets.  An KSTO official stated that the institution aims to support companies willing to issue STOs, from both technological and legal perspectives. The person highlighted the institution’s commitment to creating an STO ecosystem tailored for Korean companies, saying that the project will create a regulation-compliant, user-friendly platform and develop it to a level where it can rival the industry’s leading players like Polymesh, a prominent security token platform.  

Circle CEO to Deliver Keynote Address at Korea Blockchain Week in SeptKorea Blockchain Week (KBW) 2023, an annual blockchain conference co-hosted by FactBlock and Hashed, will be held in South Korea in September. At the highly anticipated event, Jeremy Allaire, Co-founder and CEO of stablecoin issuer Circle, will deliver a keynote address during the conference’s main event, IMPACT, as per reported by local news outlet News1.Photo by Shubham Dhage on UnsplashKeynote addressAllaire will discuss the role of stablecoins, likening them to HTTP for money and emphasizing their ability to facilitate efficient transactions in the digital economy. According to CoinMarketCap, Circle’s stablecoin USDC is currently the world’s sixth-largest cryptocurrency, with a market value of $27.3 billion.The conference will also feature a session on the combination of artificial intelligence (AI) and blockchains, with insights provided by Illia Polosukhin, Co-founder of Near Protocol. Polosukhin is known for his contribution to the groundbreaking 2017 paper “Attention is All You Need,” which revolutionized generative AI.Other notable attendees include Sébastien Borget, Co-founder of The Sandbox; Hilmar Veigar Petursson, CEO of CCP Games; Dan Held, Marketing Advisor at Trust Machines; Ed Felten, Co-founder of Offchain Labs; and Caroline D. Pham, Commissioner of the Commodity Futures Trading Commission (CFTC).110 blockchain leadersKBW 2023 will be held at various venues in the Seoul metropolitan area from September 4 to 10. The flagship event, IMPACT, will take place at the luxury hotel Shilla Seoul on September 5 and 6. This two-day gathering will bring together some 110 distinguished global blockchain leaders.Jeon Seon-ik, CEO of blockchain community builder FactBlock, described IMPACT as a high-end Web3 conference focused on discussing the latest trends in the sector. Jeon expects attendees to benefit from the insightful content provided by project leaders.Kim Seo-joon, CEO of early-stage venture investor Hashed, stated that the conference aims to provide blockchain enthusiasts with a comprehensive overview of the rapidly-evolving blockchain industry. Kim hopes that participants will gain valuable information from global Web3 leaders and discover new business opportunities.

HTX Hacker Returns FundsThe hacker responsible for the nearly 5,000 ETH exploit on the Seychelles-headquartered cryptocurrency exchange HTX (formerly known as Huobi) last month has decided to return the stolen funds.Towards the end of last month, the exchange fell victim to a hack, resulting in a loss estimated at around $8 million. According to on-chain data, the hacker has repatriated the pilfered cryptocurrency, marking a significant development in the aftermath of the cyberattack.Photo by Shubham Dhage on UnsplashHacker rewardedThe returned funds were sent back in two separate transactions, one consisting of approximately 4,000 ETH and the other totaling around 1,000 ETH. HTX advisor and Tron Founder, Justin Sun, took to X (formerly Twitter) to officially confirm the recovery. In his statement, Sun revealed that HTX had not only received all the stolen funds as promised by the hacker but had also extended a gesture of goodwill. HTX rewarded the responsible party with a “white hat bonus” amounting to 250 ETH, equivalent to a substantial $400,000.Sun expressed his satisfaction with the hacker’s decision, stating:“We have confirmed that the hacker has fully returned all funds, as promised, and we have also paid the hacker a white hat bonus of 250 ETH. The hacker made the right choice. We would like to express our gratitude to everyone in the industry for their help.”Hacker advisory messageDuring the return of the funds, the hacker conveyed a message on-chain, shedding light on the reason behind this act of restitution. The message read:“Received your message. White hat bonus to0x1Fc8674A51D6b97C968BE384337519CE7003152B. Your system hot wallet private key leak, you should change system hot wallet address and reduce the system hot wallet rate.”HTX, in response to the hacker’s decision to return the funds and in accordance with its commitment, promptly sent the white hat bonus to the specified address. The exchange also requested the hacker to provide a detailed security vulnerability analysis report to the email address htxsafe@htx-inc.com.This request aims to prevent similar incidents in the future, with assurances that the hacker’s privacy will be safeguarded.Justin Sun had confirmed the original hack in September, at the time reassuring the community that HTX had covered all losses arising from the attack and resolved associated issues satisfactorily.While acknowledging the severity of the hack, Sun pointed out that the stolen amount represented a relatively small fraction of the $3 billion in assets held by HTX’s users. To incentivize the return of the funds, HTX had even offered a reward of 5%, which equated to $400,000.However, Sun also emphasized that if the funds had not been returned within a seven-day window, the company would have been compelled to involve law enforcement authorities.Thankfully, it did not come to that, and the cryptocurrency exchange can now move forward with the confidence that its users’ assets are secure. This incident highlights the importance of cooperation and ethical choices within the crypto community, as well as the potential for resolution even in the face of cyberattacks.