Malaysian regulator seeks feedback on crypto framework enhancements

Tether fueling Cambodia’s dark economy despite banDespite being officially prohibited for trade in Cambodia, Tether (USDT), the leading USD stablecoin, has been found to be integrated into the Southeast Asian nation’s shadow economy.That’s according to a report published by the South China Morning Post (SCMP) on Sunday. The publication cites security experts, who it claims have highlighted the pivotal role of USDT, emphasizing its low fees and unrestricted capability to expedite the movement, concealment and laundering of money.Photo by DrawKit Illustrations on UnsplashPig butcheringThe U.S. Department of Justice’s November seizure of nearly $9 million traced to over 70 victims of online scams underscored Tether’s involvement. Collaborating with Tether Holdings and the crypto trading platform OKX, the investigation identified assets linked to “pig butchering” cyber scams in Southeast Asia, freezing an additional $225 million. While specific details regarding the origin of these assets remained undisclosed, Southeast Asia, including Cambodia, has emerged as a hub for money laundering related to online gaming and cyber scams.Cybersecurity expert Ngo Minh Hieu from the Vietnamese government’s National Cyber Security Centre warned of the susceptibility of cryptocurrencies to scams and Ponzi schemes, particularly targeting less informed investors. This heightened risk has spurred a surge in money laundering and online scams, leading to a spike in arrests.Official line versus realityIn many jurisdictions, the official line taken on cryptocurrency and digital assets doesn’t necessarily reflect the reality. China clamped down on crypto trading and mining a number of years ago. Despite that, a Wall Street Journal investigation earlier this year found that global crypto exchange Binance had a thriving China-centric business.The same seems to be true in Cambodia with respect to its official ban on crypto. Owners of both physical and online crypto exchanges in Phnom Penh openly admit to providing a parallel financial service in the developing economy. The prevalence of neon signs advertising exchange rates in Chinese yuan for USDT underscores the widespread usage of Tether in the region, particularly within Cambodia’s dark economy.Critics chime inNews of the illicit use of Tether in Cambodia has prompted a response from long-standing critics of the company. Tether’s harshest critic has been a pseudo-anonymous persona on the X platform with the username “Bitfinex’ed.” That account wrote:”Tether. The choice for organized crime & criminals. Giancarlo Devasini once said, ‘We’re going to have to learn to bank like criminals.’”Despite its role in facilitating illicit activities, the extent of Tether’s penetration into Cambodia’s economy remains challenging to ascertain. Globally, approximately 84 billion USDT is in circulation, with banks, exchanges and platforms flourishing, leveraging social media and encrypted channels to advertise seamless and reliable digital solutions for money flow challenges.One such platform, Huione Pay, operates in a bank-like setting, engaging customers in discussions about USDT exchange options. A closer look at Huione’s publicly available USDT exchange activities reveals insights into Tether’s role in enabling transactions within Cambodia.Some conversations in Chinese seek “pure white assets,” indicating funds from legitimate sources, while others do not request such provenance. These exchanges also advertise products and services crucial to scam operators, such as the sale of SIM cards from different countries.

CipherBlade Opens Singapore OfficeThe emerging crypto hubs in Asia continue to make progress and on this occasion blockchain and crypto investigations firm, CipherBlade has decided to be part of that emerging growth in Singapore, opening an office in the city state.Cybercrime investigationsAccording to Asia-centric digital assets publication, Blockhead, the firm’s decision to open an Asian base was rooted in a need to service the requirements of a growing client base in the region, as demand intensifies for its services. CipherBlade has developed an expertise in the particular niche of blockchain analytics, cryptocurrency investigations and digital forensics.The firm was co-founded by its lead investigator Richard Sanders in 2018. Initially based out of Pittsburgh, CipherBlade has team members distributed internationally, in Europe, and now also in Singapore via its new office location.CipherBlade’s CEO of Americas, Justin Maile, said that “Singapore is a perfect location for us, with its strong reputation as a financial hub and its commitment to technological innovation.”With the expansion, it is understood that the company is currently recruiting to fill a variety of specialist positions.Photo by cottonbro studio on PexelsTracking down hackersAs the crypto and blockchain sector as a whole grows, it has also been accompanied by a significant component of illegal and illicit activity. This includes money laundering, fraud and hacking. The stand out example in the Asian region would be the activities of hacker collective, Lazarus Group.The hacker group has become notorious in the crypto space, given the extent to which it has pulled off hacks of various entities and DeFi networks in the sector. Hacks and exploits of DeFi networks accounted for 82% of all digital assets stolen in 2022. Lazarus Group has received particular attention as it is understood to be affiliated with the North Korean regime.The default approach for start-ups across all sectors is to focus on growth. The danger for start-ups in the DeFi space is that they overlook elements of network security in pursuing that growth, when achieving a high level of network security is an incredibly difficult task to begin with.Collaborating with industry stakeholdersThe activities of Lazarus Group and other more disparate entities like them, have created a need for the services of companies like CipherBlade. To that end, the firm collaborates with a wide range of industry stakeholders, including regulators, law enforcement, intelligence agencies and cryptocurrency exchanges.Recent work the blockchain forensics and cybercrime firm has been involved in includes a class action lawsuit brought against failed crypto lender Voyager. The allegation of the class action is that Voyager built in hidden fees to the detriment of customers.From crypto divorces to ‘pig butchering’ scamsPointing to the diversity of the firm’s work, it has been involved in over 150 crypto divorce cases. That is to say, tracking down digital assets belonging to one of the parties to a divorce so that those assets are recognized and made part of any divorce settlement.CipherBlade’s investigators have worked on cases involving ‘pig butchering’ crypto scams. These are instances of scams that lure the victim into contact with the scammer before the scammer gains their confidence, directing them onwards towards fraudulent crypto investment platforms where they’re encouraged to invest.

Ozys integrates Orbit Swap into SK Telecom’s T WalletSouth Korean blockchain tech company Ozys revealed on Wednesday (local time) that its Orbit Swap service has been incorporated into SK Telecom’s (SKT) T Wallet. This integration allows for the smooth exchange of native tokens within the digital asset wallet service of one of Korea’s major mobile network providers.Photo by Mariia Shalabaieva on UnsplashT Wallet featuresSKT’s T Wallet, accessible on both mobile and web platforms, offers various features. It facilitates the storage and management of digital assets, handles digital content NFTs, supports decentralized applications (dApps) and provides identity verification solutions.Now equipped with Orbit Swap, T Wallet enables users to seamlessly swap native tokens of blockchains like Bitcoin and Ethereum with a single transaction. Additionally, with Orbit Swap’s explorer feature integrated, users can instantly review their transactions, further improving the user experience.Orbit Swap was developed as a result of Orbit Bridge, the cross-chain initiative of Ozys. It also supports various tokens, including USDC, USDT, MATIC, XRP and TON.Result of August partnershipThis integration marks a result of a partnership between the two companies, established last August, aimed at advancing the Web3 ecosystem.Both entities are committed to fast-tracking Web3 adoption by developing user-centric services and establishing an ecosystem that contributes to user protection.Speaking on their collaborative effort, Choi Jin-han, CEO of Ozys, expressed his belief that the Orbit Swap feature would serve as a gateway to a multi-chain ecosystem for T Wallet users.