AMO Labs and Webility team up to expand Korea’s blockchain-based mobility industry

USDT, the leading U.S. dollar stablecoin issued by Tether, has been highlighted as a major conduit for money laundering and scams in Southeast Asia, according to a United Nations report released on Monday.Photo by Mathias Reding on UnsplashIllicit stablecoin useThe report has been titled “Casinos, Money Laundering, Underground Banking, and Transnational Organized Crime in East and Southeast Asia: A Hidden and Accelerating Threat.” It points out that online gambling platforms, particularly those operating illicitly, are among the favored channels for cryptocurrency-based money launderers, with a notable emphasis on the use of Tether or USDT. In a foreword to the report, Jeremy Douglas, the UN’s Regional Representative for Southeast Asia and the Pacific, noted that technology had aided crime networks in Asia, and in particular, the Mekong Delta region. Developing upon that idea, he added:”This has necessitated a revolution in the regional underground banking architecture, resulting in the development of systems and infrastructure capable of moving and laundering massive volumes of state-backed fiat and cryptocurrencies.”The report itself asserts that illegal and under-regulated crypto exchanges have become “foundational pieces of the banking architecture used by organized crime.” The document highlights law enforcement efforts in disrupting multiple money laundering networks linked to the illicit transfer of Tether funds. Last August, Singaporean authorities dismantled a network through an operation, recovering approximately $735 million in both cash and cryptocurrency. ‘Pig butchering’The UN report further suggests that USDT has been extensively employed in various underground fraud activities, including so-called "pig butchering" romantic scams. Last November, Tether froze $225 million in stolen USDT following investigations by Tether in collaboration with crypto exchange OKX and the U.S. Department of Justice. The money had been held in self-custodied wallets associated with an international human trafficking group in Southeast Asia orchestrating a pig-butchering scam. In December, Tether CEO Paolo Ardoino informed U.S. legislators in a shared letter that the company has enlisted the U.S. Secret Service and Federal Bureau of Investigation onto its platform. Later that month, the Chinese authorities uncovered a massive underground banking operation that was designed to evade the country’s foreign exchange controls. There was more related activity in December when it emerged that USDT has been integrated into the shadow economy in Cambodia, against a backdrop of the currency being prohibited for the purpose of trade within the Southeast Asian country. TRM Labs reportIn July of last year, a report by blockchain analytics firm TRM Labs, found that pro-ISIS terrorist groups in Central and Southeast Asia and the Middle East are increasingly using cryptocurrency, with a particular preference for USDT transacted over the Tron blockchain network. The UN report cites the popularity of USDT among those engaged in cyber-fraud and online casino operations, located in Myanmar, along the border with Thailand. Throughout 2023, Tether witnessed a notable expansion in its share of the global stablecoin supply, growing from 50% to 71%. At the time of writing, USDT has a market cap of $95 billion with stablecoins having an overall market capitalization of $134 billion. The UN's findings raise concerns about the stablecoin's role in facilitating illicit activities and underscore the need for enhanced regulatory scrutiny within the rapidly evolving crypto landscape.

A recent survey by Turkish crypto exchange Paribu reveals that 99% of Turkish investors are now familiar with digital assets, a significant rise from just 16% in 2020. Digital assets have emerged as the third most popular investment choice in Turkey, overtaking traditional options like real estate. Investors are now nearly twice as likely to consider digital assets over stocks or mutual funds, a trend seen across other Asian nations, where younger investors are favoring crypto over more conventional investments. In Indonesia, for example, digital asset investors reached 20 million this year, far surpassing the 12 million who trade on the country’s stock exchange. In the U.S., a recent Bank of America survey reported a similar trend, with younger investors increasingly gravitating toward digital assets.Photo by Burak Karaduman on PexelsHigh returns and future potential drive interest in digital assetsThe survey shows that Turkish investors are primarily attracted to digital assets for their high return potential, while some view them as the future of finance. Other motivations include fast transaction capabilities, as well as benefits like censorship resistance. According to Paribu’s spokesperson, Nergis Nurcan Karababa, crypto assets may experience higher adoption rates than traditional financial products, as more individuals anticipate mainstream usage of digital assets in the near future. Security a top priority for Turkish investorsSecurity remains a paramount concern for Turkish investors, particularly given the history of hacks and fraud targeting local exchanges. Paribu’s survey, which polled over 2,000 residents and 541 active traders, found that most Turkish investors demand a strong security system from their trading platforms. In recent years, Turkish exchanges have been targeted by hackers, with high-profile breaches impacting investor confidence. In June, an attack on BtcTurk, the country’s largest exchange, reportedly led to a $55 million loss from multiple hot wallets. An earlier collapse of the Thodex exchange in 2021 saw the disappearance of investor funds valued by Chainalysis at $2.6 billion, although local prosecutors cited a lower figure. Thodex’s founder was sentenced to over 11,000 years in prison, underscoring the severity of crypto-related financial crimes in Turkey. Rise in preference for local exchangesDespite security incidents, Turkish investors increasingly favor local exchanges, with 78% indicating a preference for Turkey-based platforms in 2024, up from 63% last year. This trend aligns with a global shift towards domestic exchanges as investors seek platforms regulated by local authorities, providing easier avenues for legal recourse. The collapse of international platforms like FTX has accelerated this trend, and countries such as Nigeria, India and Indonesia have issued new licenses exclusively for local exchanges, restricting foreign entities from operating within their borders. Turkey’s leading position in the MENA crypto marketTurkey ranks as the largest digital asset market in the Middle East and North Africa (MENA) region and is 11th globally in terms of adoption, according to Chainalysis. Between June 2023 and June 2024, Turkey received $137 billion in digital assets, placing it seventh worldwide for total transaction volume. This growing market highlights Turkey’s role as a key player in the global crypto landscape, as well as the increasing integration of digital assets into mainstream financial activities among Turkish investors. 

FTX Opts Out of Plan to Sell off FTX JapanThe FTX Debtor that was brought in to manage the bankrupt estate of the failed FTX cryptocurrency exchange has decided to not follow through with a plan to sell off the Japanese business.That’s according to a report by Nikkei on Thursday. In November 2022 a new management team was brought in to restructure the FTX business immediately following the business having filed for Chapter 11 bankruptcy in the courts in Delaware in the United States.Photo by Jezael Melgoza on UnsplashOptimizing value for creditorsThe original plan was to look to sell off subsidiary companies within the group such as FTX Japan, FTX Turkey, and FTX Europe. Those plans have now at the very least been delayed. Nikkei cited an FTX executive who claimed that it’s not so much that plans have been delayed but rather that the FTX Debtor has identified another approach that will likely optimize value for creditors.“They hope to increase the price by selling the entire group, rather than selling subsidiaries in various regions,” Nikkei’s FTX source stated.Rebooting the exchangeThe response from creditors to this news has been largely positive. While the notion of a rebooted FTX business has proven to be controversial within the crypto space, most creditors recognize that the business can provide much greater value for them if it is restarted internationally.Global investment banking firm Perella Weinberg Partners (PWP) was brought in by the FTX Debtor in November 2022 to carry out a strategic review of the assets held by the FTX group. In a recent bankruptcy court hearing in Delaware, one of its partners stated that they are currently in the process of inviting bids from interested parties.At that time, PWP indicated that the Debtor was looking to revive the international FTX business. That would likely mean an entity headquartered outside the United States. It remains to be seen what will happen in the case of the FTX US business. Due to an unwelcoming regulatory approach in the US right now, setting up a crypto business there is seen as having additional risk factors.Asian interestA number of weeks ago, the Debtor filed a list of interested parties. The list included a number of high-profile Asian companies, although it’s not clear if their interest lies in the business in its entirety or specific FTX assets.Among them was Japanese telecoms firm Docomo. Tokyo-headquartered global financial services company Nomura also featured. Japan’s largest Ecommerce company, Rakuten, also signed a letter of intent in expressing its interest. FTX Japan had attracted 41 bidders. It’s being speculated that some of these Japanese entities will now bid on the entire business or join consortiums who will do so.FTX Japan solventCreditors of FTX Japan have fared much better than their international counterparts. In the wake of the collapse of the Mt.Gox cryptocurrency exchange in 2014, the Japanese authorities set to work on providing greater protections for customers. As a consequence, FTX Japan was required to ring-fence customer funds. For that reason, Japanese customers have already been given access to their funds.In a recent exchange on Twitter, well-known American investor Mark Cuban pointed out that Japanese regulators had been successful in protecting FTX investors in Japan. Cuban made the point to former US Securities and Exchange Commission (SEC) regulator John Reed Stark, underscoring the failure of US regulators in doing so.