Hong Kong establishes rules to enable crypto staking

While the crypto markets have not been immune to geopolitical developments, the sector in Iran experienced a more direct effect last week with a politically motivated $90 million exchange hack, prompting the authorities to introduce an exchange curfew. Blockchain analytics firm Chainalysis outlined on X on June 18 that Nobitex, Iran’s largest cryptocurrency exchange, had been hacked, with crypto assets to the value of $90 million having been drained from exchange-controlled wallets.Photo by Engin Akyurt on PexelsWeaponizing blockchain technologyThe hack had the hallmark of a politically-motivated attack given that rather than the digital assets being stolen, they were sent to vanity addresses, customized blockchain addresses involving user-defined sequences of characters. The vanity addresses contained “politically charged messages” and in sending the funds to them, the funds were effectively burned as they’re now permanently inaccessible.  The firm stated:”This incident highlights how crypto exploits aren’t always financially motivated. Bad actors can weaponize blockchain technology for geopolitical messaging, turning hacks into ideological statements rather than profit-driven crimes.” Pro-Israel hacker group Gonjeshke Darande, also known as “Predatory Sparrow,” appears to have carried out the hack, given that on June 18, it outlined on X that it would release Nobitex’s source code together with other internal information related to the firm’s internal network, while confirming that it had conducted cyberattacks against the company. The group made the following assertion:”The Nobitex exchange is at the heart of the [Iranian] regime’s efforts to finance terror worldwide, as well as being the regime’s favorite sanctions violation tool.” Rafe Pilling, director of threat intelligence at Sophos, a British cybersecurity company, told The Guardian that Predatory Sparrow “bears all the hallmarks of a false persona used by a government-sponsored threat group to conduct disruptive operations against targets” linked to the Iranian government. While Nobitex is estimated to have seven million users, an Open Source Intelligence (OSINT)-based investigation carried out in 2024 linked relatives of Ali Khamenei, Iran’s supreme leader, and other Iranian establishment figures to the crypto exchange. Minimizing systemic riskThe cyber attack has prompted a response from the Iranian government. In a blog post, Chainalysis outlined that the Central Bank of Iran has instructed all domestic crypto exchange platforms to curtail their service hours to between 10 a.m. and 8 p.m. The company speculated that this measure could be motivated by a desire to impose a higher level of oversight and control over the local crypto sector. However, it also suggested that it may be part of an attempt by the Iranian authorities to manage and minimize systemic risk. In recent years, Iran has been subject to extensive international sanctions applied by various entities including the United States, the European Union and the United Nations. Those sanctions have had a significant impact upon the country’s economy, triggering high inflation and currency devaluation.  With that, crypto has been increasingly viewed by the authorities as a means to circumvent sanctions. Last December, the Iranian authorities appeared to be working towards regulating crypto, embracing the asset class in acknowledgement of its growing importance to the Iranian economy. In February, Chainalysis reported that sanctioned entities worldwide had received $15.8 billion in crypto transactions in 2024.

GroundX to Bring NFT Activities to 2023 Seoul Light Hangang Bitseom FestivalGroundX, the blockchain subsidiary of South Korean conglomerate Kakao, said Tuesday that it will host NFT-related activities at Seoul’s largest laser art festival, the 2023 Seoul Light Hangang Bitseom Festival, from October 6 to 15 in collaboration with the Seoul Metropolitan Government and other affiliates like LG Uplus and the Seoul Foundation for Arts and Culture.Photo by Wes Hicks on UnsplashMerging physical activity, learning, and artThe activities will fall under the theme of “3L”: Light Run, Laser Art, and Lecture. Light Run is a four-kilometer running course scheduled for October 6 and 14, for which GroundX will mint NFT certificates for participants who complete the course. The NFTs will contain information about the participant, as well as the date of the event and a record of completion. They will then automatically be sent to and stored in the participant’s Klip wallet, GroundX’s digital wallet service, and can be accessed at any time on the Klip app and KakaoTalk Wallet.GroundX said that it will also showcase digital artworks by eight artists, including Kim Duk-ki, Han Seung-ku, and Berry Kim. These works will be displayed on LED platforms installed at the Banpo and Ichon Hangang Parks.Kim Tae-keun, Head of Business at GroundX, is set to participate as a lecturer for the Bitseom Lecture segment on October 8, where he will discuss NFT art and the company’s vision for the media art industry. Bitseom Lecture is an outdoor art convergence lecture program that introduces immersive media artworks and technology in virtual reality (VR) and extended reality (XR).Bringing the NFT experience to Seoul“We hope that citizens visiting the Bitseom Festival will be able to get the real NFT experience through our media art displays, lectures, and running course completion certificates,” GroundX said. “We will continue to collaborate with various organizations and create NFT use cases through participation in offline festivals and events.”

p0x Labs Secures $25M Funding to Propel Manta Network Into Asiap0x Labs, the development team behind Manta Network, has successfully raised $25 million in a Series A funding round that will see the project expand into the Asian market.Photo by Towfiqu barbhuiya on Unsplash$500 million valuationThe funding round, led by Polychain Capital and Shanghai-headquartered Qiming Venture Partners, has resulted in a valuation of $500 million for p0x Labs, according to a blog post published by the project on Wednesday. This equity-based investment demonstrates a growing interest in not only the project’s token but also the team behind it.Manta Network aims to leverage zero-knowledge (ZK) technology to address the scalability challenges and privacy concerns prevalent on the Ethereum network. By harnessing zero-knowledge proofs, Manta enables users to verify the authenticity of information without disclosing the underlying data.This approach provides individuals with complete control over their identities while mitigating the risks of surveillance. Consequently, Manta Network is seeking to attract users who have reservations about utilizing DeFi protocols due to the transparent nature of transactions on public blockchain networks.At the recent EthCC event held in Paris, the project unveiled the testnet for its Layer 2 network, known as Manta Pacific. This testnet operates in an environment with low gas fees, fostering cost-effective transactions for users. Manta Pacific is designed to complement the existing Layer 1 solution, Manta Atlantic, which focuses on achieving compliant on-chain privacy.VC supportLuke Pearson, an investor at Polychain Capital, expressed his enthusiasm for Manta Network’s expansion within the Ethereum ecosystem and confirmed Polychain’s continued support through this Series A funding round. Meanwhile, Yi Tang, Principal at Qiming Venture Partners, believes that their contribution will not only help Manta Network penetrate the Asian market but also attract the attention of Web2 brands.With the additional funding, p0x Labs aims to establish a global presence for Manta Network. Kenny Li, a core contributor at Manta Network, emphasized the significance of partnering with one of China’s largest investors to gain a stronger foothold in Asia, particularly China. The team is enthusiastic about the opportunities this collaboration will bring.Industry partnershipsManta Network has already witnessed substantial demand for its offerings, with partnerships with projects such as Arbitrum and Linea resulting in the creation of over 300,000 zero-knowledge soulbound tokens. These tokens enable the verification of on-chain identities without compromising data confidentiality. Additionally, the native Manta Wallet has garnered more than 200,000 installations, and innovative features like email-based notifications have contributed to a collective user base exceeding 1.5 million users.Looking ahead, the newly launched testnet with its plug-and-play functionality is expected to streamline the development process for Manta Network’s ecosystem. Developers will be able to allocate their time and resources more efficiently toward building their core products, driving innovation within the zero-knowledge space.The successful funding round and the launch of the Layer 2 testnet mark significant milestones for Manta Network and p0x Labs. With continued support from prominent investors, Manta Network appears to be setting itself up to unlock the true potential of zero-knowledge technology and drive adoption across various industries.