Hong Kong's spot Bitcoin ETFs experience first daily outflows 

Linear Finance Dealing With LUSD ExploitLinear Finance, the Hong Kong-based DeFi protocol, made an announcement by way of a blog post published to the project’s website on Thursday, suggesting that the project’s native stablecoin, LUSD, has come under attack.Photo by Markus Spiske on UnsplashTaking precautionary actionThis security breach has prompted the team to take immediate action to safeguard user accounts and the project’s integrity. The project team is actively investigating the exploit attack on LUSD. It has issued a stern warning to its users, advising them against buying or trading LUSD until the team can confirm the situation’s status.This measure is aimed at preventing further complications and ensuring the community’s interests remain protected. Furthermore, the project has temporarily suspended liquidations to secure users’ accounts. This step has been taken to mitigate immediate concerns and ensure that no user faces undue losses as a result of the exploit.Assets disposed on PancakeSwap & AscendexAmid the ongoing investigation, Linear Finance’s team has pledged to provide timely updates as soon as more information becomes available. In explaining away the nature of the attack, the project team clarified:”The attacker was able to mint an unlimited supply of LAAVE and subsequently traded the liquid asset to LUSD on the Linear Exchange, prior to selling it on PancakeSwap and Ascendex.”Project responseIn its efforts to deal with the issue, the Linear Finance project team has engaged an on-chain data specialist to track down the attackers. The Linear bridge contract has been disabled relative to LUSD. All protocol contracts that allow tokens to be minted, exchanged, or burnt have been paused. Meanwhile, wallets identified as having been involved in the protocol exploit have been shared with the authorities and major cryptocurrency exchanges.Synthetic asset protocolLinear Finance creates synthetic assets with the protocol design enabling unlimited liquidity. The network has been built on top of the Ethereum blockchain. As a consequence of activity surrounding the exploit, trading of LUSD over the course of the past 24 hours has proven to be out of the ordinary. At the time of writing volume over the past 24-hour period had increased by 8412%. The current market price of the stablecoin stands at $0.9874.Protocol and network hacks and exploits have been coming in thick and fast in recent days. Hong Kong crypto exchange CoinEx has been trying to recover from a $70 million hack on the platform over recent days. Meanwhile, Seychelles-headquartered peer-to-peer crypto platform Remitano suffered a $2.7 million hack late last week.On Wednesday, the project team behind DeFi protocol Balancer warned network users that the Balancer front-end user interface was under attack. The Ethereum-based DeFi network fell victim to another exploit last month, resulting in losses in the region of $900,000.In the dynamic crypto sector, unforeseen events like potential exploits can disrupt the market and sow uncertainty. The issue remains a major challenge both for centralized exchange platforms and DeFi protocols.

Korean Firms Team Up to Boost Biofuel Use Through Blockchain TechSouth Korean tech service provider SK C&C announced on Thursday that it inked an agreement with Recycle Ledger, a company that operates a service for tracking transactions related to recycling resources. Through this collaboration, the two firms aim to employ ChainZ, SK C&C’s blockchain application programming interface (API) platform, to track the journey of waste cooking oil.Photo by Sigmund on UnsplashBroadening ESG operationsThis deal allows SK C&C to broaden its environmental, social, and governance (ESG) operations into the waste management sector through blockchain tech, strengthening its position as a prominent provider of ESG solutions and a leader in Korea’s net-zero digital intelligent transport systems (ITS).Prior to this initiative, SK C&C launched Click ESG, a comprehensive ESG management platform, and Centero, a carbon credit trading platform, enhancing its ESG offerings.Recycle Ledger operates an ESG platform built on blockchain technology, enabling easier tracking of waste and recycling resources while promoting transparent information sharing. The firm is currently developing a tracking management system for waste cooking oil, specifically tailored for aviation biofuels, a rapidly emerging market sector.Global trendThe US, the EU, and other developed nations are implementing regulations that require sustainability certification for biomaterials and enhancing systems to monitor and manage the collection process of waste cooking oil. This oil can serve as an ingredient for biofuels.This stricter regulatory landscape emerged partly in response to instances of greenwashing, where conventional biofuels are falsely presented as being derived from used cooking oil. Such deceptive practices became prevalent due to the escalating prices of biofuels.Since the adoption of the International Air Transport Association’s (IATA) resolution known as Fly Net Zero in October 2021, which commits airlines to achieve net zero carbon by 2050, many developments have taken place. The EU has imposed a requirement for suppliers to blend at least 2% of sustainable aviation fuel (SAF) into kerosene starting from 2025, planning to boost this to 63% by 2050. The US, meanwhile, aims for 100% SAF use in its aviation fuel demand by 2050.Waste cooking oil trackerIn light of these developments, Recycle Ledger plans to introduce a blockchain-based service that comprehensively tracks and manages the complete life cycle of waste cooking oil, from restaurants to biofuel producers. By utilizing blockchain technology, the company aims to help waste cooking oil exporters obtain sustainability certifications for biomaterials.Recycle Ledger is collaborating with fintech solution provider Woori FIS and electronic payment firm Payup to develop a system that addresses the inconvenience of cash transactions for recyclable resources. Recycle Ledger is also exploring the implementation of a carbon point system for waste cooking oil emissions.Blockchain-based data flow trackingMeanwhile, SK C&C will provide its blockchain mainnet ChainZ as an API to help Recycle Ledger provide its services swiftly and securely.SK C&C’s data tracing API is designed to document information across all data management stages, including data creation, provision, receipt, analysis, and deletion, offering an environment to track data flow.Recycle Ledger CEO Kim Ki-jong said that its platform could enhance the value of recyclable resources and prevent greenwashing by storing transaction data on the blockchain.Choi Chul, the head of the Web3 tech group at SK C&C, touted ChainZ’s benefits, including data security, transparency, and integrity. He highlighted the need for data traceability and transparency within the ESG sector given the multiple stakeholders involved, and affirmed ChainZ’s readiness to satisfy the demand for new ESG services.

Hong Kong and Saudi Arabia Collaborate on Tokenization and PaymentsIn an effort to enhance financial collaboration, Hong Kong and the Kingdom of Saudi Arabia are expanding their ties and focusing on agreements related to tokenization and payments infrastructure.Photo by Ketut Subiyanto on PexelsBilateral meetingOn Wednesday, the Saudi Central Bank (SAMA) and the Hong Kong Monetary Authority (HKMA) held a bilateral meeting to discuss various initiatives aimed at integrating financial services between the two nations. During the meeting, the central banks explored areas such as financial infrastructure development, open market operations, market connectivity, and sustainable development. Additionally, they signed a memorandum of understanding (MoU) to facilitate joint discussions on financial innovation.HKMA chief executive Eddie Yue emphasized the potential for cooperation in fields like economy, trade, sustainable development, finance, and fintech between the two nations. He expressed optimism about the continued development of the relationship and the prospects it holds for the future.SAMA governor Ayman Al-Sayari echoed this sentiment, acknowledging the significance of the MoU in fostering stronger ties and assisting them in the future. “HKMA is an important partner for the Saudi Central Bank. Today’s MoU will support our relationship and contribute to the consolidation of efforts in developing the Fintech industry,” he stated.Tokenization and payment infrastructureNotably, the authorities of Hong Kong and Saudi Arabia also used the opportunity to exchange expertise in tokenization, payment infrastructure, and supervision technologies. This collaboration opens up possibilities for both countries to leverage each other’s strengths in these areas.Hong Kong has been actively participating in various inter-jurisdictional tokenization initiatives. In June, the Bank of China’s investment bank subsidiary, BOCI, issued a $28 million tokenized security in Hong Kong using the Ethereum blockchain. The project utilized Goldman Sachs’ tokenization protocol GS DAP and featured cash tokens representing claims on the Hong Kong dollar.Digital assets firm Ripple Labs has also participated in a HKMA pilot program that implicates real estate tokenization.No crypto discussionHowever, the joint announcement did not explicitly mention any joint efforts related to cryptocurrencies like Bitcoin. It is worth noting that Hong Kong recently allowed retail investors to trade crypto, but Saudi Arabia has not shown any specific plans to promote cryptocurrencies in recent years. In 2019, the Saudi Central Bank issued a warning that Bitcoin is not recognized by legal entities within the country.International collaborationRecent months have seen ever greater collaboration between international central banks and regulators relative to digital assets. Last month Japan’s Financial Services Authority (FSA) joined forces with the Monetary Authority of Singapore (MAS) on its Project Guardian initiative to further explore the potential of digital assets.In May, the central banks of Hong Kong and the United Arab Emirates announced a collaboration to work on cryptocurrency regulations and financial technology development. In the same month, MAS partnered with New York’s Federal Reserve Bank on an initiative that examined the use of central bank digital currency (CBDC) for wholesale cross-border payments.As the financial collaboration between Hong Kong and Saudi Arabia strengthens and other such international partnerships continue to unfold, the focus on tokenization and payment infrastructure and digital assets more broadly signifies a step forward in embracing these innovative financial technologies.