Seoul Labs’ Web3 launchpad SLUSH attracts investors

Hong Kong’s GSBN Takes Lead in Blockchain LogisticsIn recent years, the logistics industry has seen an increase in the use of blockchain technology to streamline supply chains and provide greater transparency to customers. While some major players, like Danish firm Maersk, have terminated their blockchain-based platforms, others are bullish on the long-term potential of the technology.©Pexels/Ben CheungA blockchain-based shipping platformOne such player is the Hong Kong-based Global Shipping Business Network (GSBN), a nonprofit consortium focused on blockchain trade applications. According to a report by the South China Morning Post, GSBN operates one of the world’s largest platforms as an alternative to Maersk’s TradeLens tool. Since launching its blockchain-based shipping platform in 2021, GSBN has partnered with major shipping companies and terminal operators such as Cosco, Orient Overseas Container Line, Hapag-Lloyd, Hutchison Ports, SPG Qingdao Port, PSA International, Shanghai International Port Group, and Cosco Shipping Ports.The platform, based on a permissioned blockchain with strong data governance, allows only authorized parties to contribute and consume shipping-related data. The organization believes that blockchain is a crucial logistics tool in the long term, and its adoption may take another decade.Blockchain inevitable amid continued digitizationGSBN CEO Bertrand Chen is confident in the potential of blockchain technology, saying that global trade will not continue to rely on “pen and paper” by 2032. He believes that blockchain has the potential to help the industry transform in response to supply issues triggered by events such as COVID-19.“Because of COVID-19, because you have to change the process, I think this is one of the regular use cases of blockchain” . . . “Probably that’s better than NFTs of digital art. NFTs of documents for global trade — this will be the real killer use case.”While Chen acknowledges that China has taken the lead in blockchain logistics due to its significant investment in the industry, he believes that GSBN has global ambitions and is working to attract more European shipping lines. The nonprofit even hopes to onboard Maersk one day, but Chen admits that such a scenario “may be slightly challenging.”Emerging Web3 hubHong Kong has also emerged as a major hub for Web3 and cryptocurrency, with the local government taking action to adopt clear industry regulations. Despite a blanket ban on crypto in China, some Chinese government-related firms have reportedly been growing interested in crypto investment, with state-owned firms like insurer CPIC launching crypto-related funds in early April.Blockchain technology has the potential to revolutionize global trade and supply chain management, providing greater transparency and efficiency. However, widespread adoption may still be years away, and companies will need to navigate regulatory and technical challenges to fully leverage the benefits of blockchain.While some logistics firms may have terminated their blockchain-based projects, others like GSBN remain optimistic about the potential of blockchain technology in global trade. With major shipping partners and terminal operators already onboard, GSBN has a solid foundation to build on as it continues to attract more players to its platform. As the world becomes increasingly digitized, blockchain may be a crucial tool for the logistics industry to transform and adapt to new challenges.

Recent reports from local media outlets indicate that Indonesian authorities have conducted raids on crypto mining sites, accusing them of illicitly siphoning electricity from the utility poles of the state-owned electricity company. The government’s intervention comes as part of a broader effort to address energy theft and regulate the cryptocurrency mining industry in the country.Photo by Fré Sonneveld on UnsplashTen mining sites raidedOfficials from the state-owned electricity company PLN highlighted the importance of coordinated efforts in exposing the unauthorized mining operations that were tapping into the national grid without approval. According to the reports, the ten illegal bitcoin mining sites which were raided incurred a financial loss of approximately 1.4 billion Indonesian rupees, equivalent to $100,000 for the state. The impact of energy theft extended beyond financial concerns, raising environmental and community-related concerns. Local students, alarmed by the potential consequences, urged PLN and regional police to investigate the mining operations. Subsequent action revealed that the theft was indeed taking place, prompting PLN officers from the Bukit Barisan Customer Service Implementation Unit (UP3) to conduct a raid. However, the officers faced threats and resistance, leading to a close coordination between PLN and the North Sumatra Regional Police. The raid uncovered a total of 1,300 bitcoin mining machines engaged in illegal operations, with each machine consuming a substantial 1,800 watts of electricity. Inspector General Agung Effendi, the North Sumatra Police Chief, disclosed that the illicit activities had been ongoing for an estimated six months, resulting in the arrest of 26 individuals across the ten locations.PLN reassured stakeholders of continued collaboration with the police to prevent further electricity theft and safeguard the national grid from such unauthorized activities. Worldwide concernThe incident in Indonesia reflects a global concern over the energy consumption of cryptocurrency mining operations generally, but also with regard to illegal activity. In recent years, the environmental impact of these operations has become a focal point in public policy debates, with climate activists emphasizing the harm caused. Government officials, on the other hand, express concerns about the potential disruption to the total distribution network if not properly regulated. In September, neighboring Malaysia identified illegal crypto mining activities in the state of Sarawak as the reason for recurrent power disruption. Meanwhile, in Singapore in August, authorities uncovered a crypto mining scam that cheated investors out of $1.3 million dollars. Indonesia joins other countries that have conducted raids on crypto mining operations accused of running large-scale, unregistered facilities. Malaysia has witnessed multiple arrests related to digital asset mines, while in Venezuela, authorities seized bitcoin machines and weapons from a recaptured prison controlled by a criminal gang. Legitimate mining potentialNotably, this marks the first such incident in Indonesia, and energy theft charges in the country are punishable by up to five years in prison or 200% of the stolen energy’s value. Despite these problems, Indonesia also understands the opportunity that exists where legal bitcoin mining is carried out. In May, Ridwan Kamil, Governor of the province of West Java, participated in a fireside chat titled “The Indonesia Bitcoin Mining Campaign.” During that event, Governor Kamil recognized the potential that bitcoin mining offers Indonesia. He stated: “[Indonesia has] the second most geothermal potential in the world — more than 800 rivers with hydropower. As bitcoin allows the transformation of energy into money, bitcoin could be transformative for Indonesia.” The global trend of addressing energy consumption in crypto mining is evident in Kazakhstan, where regulators seek to limit miners’ access to the national grid unless they operate solar-powered mines. Indonesia, with its pro-crypto population, is also moving towards increased regulation, mandating all crypto exchanges to register with the Commodity Futures Exchange (CFX) to continue operations beyond August 2024.  

Backpack Exchange, a crypto exchange that joined the Japan Virtual Currency Exchange Association (JVCEA) last December, has recently acquired FTX EU, the European arm of the failed crypto exchange business FTX. According to a press release, the business comes with a European MiFID II license, with the acquisition having been approved by the Cypriot regulator, the Cyprus Securities and Exchange Commission (CySEC). Furthermore, a Delaware bankruptcy court in the United States, which is dealing with the FTX bankruptcy, has also rubber-stamped the acquisition. Backpack Exchange was co-founded by CEO Armani Ferrante, alongside other former FTX executives. According to the firm’s LinkedIn page, it has established its headquarters in Japan. The company also has links to Dubai, having acquired a Virtual Asset Service Provider (VASP) license for its Backpack Wallet product from  Dubai’s Virtual Assets Regulatory Authority (VARA) in 2023.Photo by Christian Lue on UnsplashRebuilding trust As a consequence of having acquired FTX’s European arm, Backpack Exchange will now assume responsibility for the distribution of court-approved FTX bankruptcy claims to FTX EU users. In the company’s press release, Ferrante spoke of the importance of the distribution process in rebuilding trust. He stated: "Customer restitution is a crucial step to rebuild trust and confidence in the industry, and Backpack is committed to returning FTX EU customers’ funds as fast and as safely as possible." In response to a query from FTX creditor activist Sunil Kavuri on X, Ferrante outlined that FTX EU users “will only be able to claim their euro claims funds directly from Backpack EU.” Ferrante clarified that FTX EU customers who had pending crypto withdrawals at the time of the bankruptcy will have their crypto claims dealt with via the FTX bankruptcy estate. In a Series A financing round early last year, Backpack was valued at $120 million. Through FTX EU, it now acquires a MiFID II license, further facilitating the global expansion of the company. With FTX EU now forming Backpack’s EU arm, the company will offer crypto-derivative products, including perpetual futures. This product offering is scheduled to go live in Q1 2025. Bankruptcy process controversy The bankruptcy of FTX EU has been controversial, starting off with the European entity being illegally filed into a U.S. bankruptcy process. In early 2024, the FTX Debtors suggested that the entity was worthless. It later wanted to buy out the entity itself, outbidding a third-party bidder. A short time afterwards, the FTX Debtors reached a settlement with the former FTX EU team. It’s understood that Backpack has acquired FTX EU for $32 million.  The FTX Debtors’ attempt to buy the business itself has cast a cloud over the bankruptcy process. When it first emerged that the business had been sold, there was some speculation as to if this would mean a rebooted FTX within the European market, but Backpack’s acquisition confirms that this was not to be the outcome.  Japan could have offered another opportunity to reboot the business, but instead, FTX Japan was acquired by bitFlyer and absorbed into its existing business. With regard to the main FTX business entity, the FTX Debtors told the bankruptcy court that there was no interest in the business from buyers.