Crypto.com moves to further global reach with Hong Kong license application

Hot Wallet Exploit Results in $23M Bitrue LossBitrue, a Singapore-based crypto exchange, has fallen prey to a $23 million hack due to a hot wallet exploit. The exchange has been forced to suspend all withdrawals until April 18, to provide an opportunity to conduct a thorough security review.©Pexels/Karolina GrabowskaHot wallet vulnerabilityHot wallets are used by exchanges to store small amounts of cryptocurrencies for easy access. These wallets are connected to the internet and are therefore more vulnerable to attacks compared to cold wallets, which are stored offline. In the case of Bitrue, hackers were able to exploit the hot wallet and steal cryptocurrencies worth $23 million.In a series of Twitter posts, the exchange outlined that the exploit occurred at 07:18 (UTC) on Friday. “We were able to address the matter quickly and prevented the further exploit of funds”, it went on to state.The stolen digital assets include ETH, QNT, GALA, SHIB, HOT and MATIC. Bitrue outlined that the hot wallet funds account for only 5% of overall funds and that the rest of its wallets remain secure and have not been compromised.Blockchain security firm PeckShield outlined how the funds were swapped and drained. A wallet it has labeled as “Bitrue drainer” swapped 173,000 QNT, 22.55 billion SHIB tokens, 46.4 million GALA and 310,000 MATIC for 8,540 ETH. The ether is now being held within the following address:0x1819EDe3B8411EbC613F3603813Bf42aE09bA5A5Reimbursing usersIn response to the hack, Bitrue has promised to reimburse all affected users. However, the process could take some time.The incident underscores the importance of taking precautions when storing cryptocurrencies on exchanges. Users should only keep a minimal amount of cryptocurrencies on an exchange and should not store more than they can afford to lose. Ongoing exploits, hacks and frauds exemplify the need for users to only use reputable platforms with a proven track record of security.Doubling down on securityBitrue has promised to improve its security measures to prevent similar incidents from occurring in the future. The exchange’s response to the hack has been lauded by many in the cryptocurrency community, who have praised the company’s transparency and commitment to reimbursing affected users.The cryptocurrency community has been vocal in its criticism of exchanges that fail to prioritize security. The Bitrue hack is just the latest in a series of incidents that have highlighted the importance of maintaining security in the world of cryptocurrency.It’s not the first security breach that the exchange has encountered. In 2019 Bitrue suffered a $4.7 million loss, with quantities of both XRP and Cardano (ADA) having been stolen. On that occasion, the exchange released tracking details relative to the stolen funds. Thanks to collaboration with Huobi, Bittrex and ChangeNOW, the funds and associated accounts were frozen.According to data from CoinGecko, Bitrue trades an average of $1 billion in digital assets daily, with bitcoin and ether trading pairs accounting for a large proportion of that trading volume. The Bitrue hack has been a wake-up call for the cryptocurrency community and serves as a reminder of the ongoing risks associated with storing cryptocurrencies on exchanges.

South Korea’s retail-heavy crypto market is losing momentum ahead of broader institutional access to trading. Data from the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), cited by Financial News, shows that in the first half of 2025, Korean-won balances held at the country’s five licensed fiat-to-crypto exchanges sank 42% to 6.2 trillion won ($4.4 billion), signaling less dry powder waiting on the sidelines for trading. Only five platforms are permitted to support won-denominated trading, and the drop in parked cash underscores a broader cooling. By the end of June, the Korean crypto market cap stood at 95.1 trillion won ($67.5 billion), down 14% from six months earlier. The global market also contracted, but the decline was more modest at about 7% over the same period.Photo by Y K on UnsplashTrading slows but retail base expandsTrading activity eased as well. Average daily volumes across 25 domestic virtual asset service providers (VASPs) fell 12% to 6.4 trillion won ($4.5 billion) in the first half. Paradoxically, the number of market participants climbed 11% to 107.7 million across those platforms. Nearly all were individuals, as only 220 were institutions, reflecting long-standing restrictions on institutional won trading. That retail skew has consequences. Data submitted by the FSS to a lawmaker, cited by Digital Asset, reveals that the top 10% of users by trading volume accounted for roughly 90% of activity at the five fiat on-ramps. By exchange, the figures were Upbit (89.36%), Bithumb (97.97%), Coinone (97.54%), Korbit (97.52%), and Gopax (97.95%).  Market lawyers warn that this concentration heightens manipulation risk. Lee Seung-min of SEUM Law Firm said volatility may be more pronounced in tokens listed only on Korean venues, but added that deeper institutional participation could help reduce such volatility and support longer market cycles.  Regulators are inching in that direction. Earlier this year, authorities allowed universities and nonprofits to sell their crypto holdings. By year-end, the FSC plans to let about 3,500 publicly traded companies and professional investors, excluding financial institutions, open accounts at the licensed platforms for trading. Exchanges pour cash into promotionsWhile regulators are preparing to bring more institutional players into the fold, exchanges continue their long-running effort to draw in retail users. Another Digital Asset report noted that from 2023 through July 2025, promotional outlays by the five won-enabled platforms totaled 190.3 billion won ($135 million). Bithumb alone accounted for 180.3 billion won ($128 million), far outspending Upbit (9.4 billion won), Coinone (1.7 billion won), Korbit (1.6 billion won), and Gopax (100 million won). The gap suggests Bithumb, which ranks second in market share, has pursued a particularly aggressive approach to expand its customer base. Taken together, the numbers depict a subdued market, with less capital parked on exchanges and lighter trading while activity remains heavily concentrated among a small cohort of traders. Even so, the expanding base of individual accounts represents a bright spot, underscoring the market’s continued dependence on retail investors. If policymakers follow through on opening the door to a broader set of corporate and professional players later this year, Korea’s crypto landscape could shift from retail-driven fluctuations toward steadier, institution-supported flows. 

BitGo CEO Emphasizes Separation of Trading and Custody to Prevent Crypto BankruptciesMike Belshe, Founder and CEO of digital asset trust company BitGo, emphasized the importance of separating cryptocurrency trading and custody to prevent incidents similar to those involving Mt. Gox and FTX in his keynote speech at Impact, the main conference of Korea Blockchain Week (KBW) 2023.Established in 2013, BitGo is currently the world’s largest provider of virtual asset custody services, serving more than 1,500 institutions in over 50 countries, including the US, Switzerland, and Germany. Major exchanges like Bitstamp, Korbit, Bullish, Gate.io, and Crypto.com entrust BitGo with safeguarding their virtual assets.Clear divisionDuring his speech, Belshe repeatedly stressed the need for custody services for the sustainability of the virtual asset ecosystem, asserting that separating trading and custody can enhance trust in the industry and attract traditional financial institutions.Unlike stock markets, where payment institutions and custodians are separate entities, this kind of separation does not exist in the virtual asset market. To steer traditional financial institutions toward the virtual asset ecosystem, this issue needs to be addressed, Belshe said.He went on to cite the Mt. Gox hack in 2014 and the FTX collapse last year as examples that underscored the importance of virtual asset custody. Mt. Gox, once the world’s largest Bitcoin exchange, reportedly lost some 650,000 to 850,000 Bitcoins — worth more than $450 million at the time — due to a hacking incident, leading to its bankruptcy. FTX also faced insolvency after it was revealed that it inflated its assets using its native token FTT and that its management was misusing customer investment funds.Photo by Melinda Gimpel on UnsplashBelshe suggested that when Mt. Gox employees discovered the Bitcoin theft during the hack, it was already too late. If custody had been treated separately, the theft could have been detected much faster. Regarding the FTX debacle, he argued that even with just a few auditors, the problems in that situation could have been apprehended. FTX’s ability to provide custody of customer assets themselves led to unauthorized activities, including cross trading and insider trading, ultimately resulting in the misuse of customer funds.Korea’s favorable conditionsBelshe also assessed that South Korea is well-positioned for the establishment of virtual asset custody systems due to its high trading volume and a solid commitment to drafting crypto-related legislation. Seven such bills are currently underway, reflecting the authorities’ determination to address problems in the ecosystem. Korea thus has the potential to establish itself as a hub in Asia, he said.Indeed, BitGo’s partnership with Hana Bank to establish a joint venture for digital asset custody services in Korea is driven by these factors. Through its entry into Korea, BitGo aims to share its extensive knowledge and experience in digital asset business institutionalization and investor protection. It will also apply the expertise and strategies it has accumulated through close communication with regulatory authorities and supervisory agencies in various countries, including the US, to support the integration of virtual assets into the regulated framework in Korea.Belshe commented that through this partnership, BitGo will seek to enhance its understanding of Korea and utilize its technology and expertise to boost confidence in the Korean cryptocurrency market.