Binance’s Entry Followed by Increased Scrutiny on Foreign Executives in Korean Crypto Firms

Crypto vulnerability uncovered with $1B in digital asset exposureSecurity vulnerabilities in the validator infrastructure of InfStones, an established infrastructure provider, have been disclosed by Tel Aviv-headquartered cybersecurity firm dWallet Labs.Photo by Brett Jordan on UnsplashBlockchain network validator vulnerabilityIn a detailed Medium blog post published on Tuesday, dWallet Labs shed light on a series of vulnerabilities that, when exploited, could potentially allow attackers to gain full control, execute code and extract private keys from numerous validators on major blockchain networks. Cryptocurrencies such as ETH, BNB, SUI, APT and others were identified as at risk, with potential direct losses estimated to exceed one billion dollars.The vulnerabilities discovered by dWallet Labs opened the door for attackers to compromise the private keys of validators across multiple blockchain networks, putting over one billion dollars of staked assets at risk. In response to the findings, InfStones, a Web3 infrastructure platform, also released a statement on Tuesday acknowledging the potential threat. However, its representative, Darko Radunovic, disputed the figures provided by dWallet Labs in a statement sent to Cointelegraph. Radunovic stated that the vulnerabilities identified in the production environment account for below 0.1% of their active nodes launched to date, emphasizing that the impact would be limited to a small fraction of their operational nodes.According to InfStones, “237 instances were in scope, of which 212 instances were deployed for our development and testing purposes, and 25 freshly deployed instances in the production environment.”Mitigating steps takenThe company detailed the immediate actions taken to mitigate the vulnerabilities, including shutting down the affected ports, as well as rotating all credentials and keys within their platform. An internal review conducted by InfStones revealed no additional adverse effects. Notwithstanding that, the company took the additional step of hiring an external security firm to audit its systems and policies.Meanwhile, dWallet Labs Founder and CEO Omer Sadika shared his thoughts on the X platform as to how he believes such events should be handled. Sadika wrote:”The worst way to handle a cybersecurity vulnerability is not taking responsibility and lying. We were super open and transparent with the goal of eliminating the risk to web3. My take: it’s not about whether you are fully secure or not, because no one is, it’s about how you handle it and maintain the trust with your partners and customers.”The collaboration between dWallet Labs and InfStones sheds light on the ongoing challenges faced by the cryptocurrency industry in maintaining the security and integrity of blockchain networks. While vulnerabilities were identified and addressed, the incident underscores the importance of proactive security measures to safeguard the assets and data within the rapidly evolving landscape of digital assets.

In a recent report, Circle Internet Financial, the issuer of the USDC stablecoin, emphasized the growing adaptability of the Asian population towards digital currencies. This trend indicates a substantial potential for increased stablecoin usage in the Asia Pacific region. On Monday, the firm published "The State of the USDC Economy 2024 Report," providing a trove of relevant and timely data. Since its launch in 2018, the USDC stablecoin has facilitated over $12 trillion in blockchain transactions. The focus of the report is on the surge in remittances flowing into Asia, highlighting its growing presence. Remittances of $130 billion into AsiaAccording to a World Bank press release, remittances to Asia reached $130 billion in 2022, with the average cost of transferring $200 standing at 5.7% in the last quarter of the year. Meanwhile, the region accounted for 29% of all global digital asset value received, surpassing North America's 19% and Western Europe's 22%. Against this backdrop, the report sheds light on Circle's strategic partnership with Coins.ph, a crypto exchange in the Philippines, which aims to tap into the country's personal remittance demand, estimated at around $36 billion annually.  In another blog post, the company also dispels the notion that stablecoins are primarily used for speculative trading, citing a 90% decline in such activities over the past five years. This shift in usage patterns highlights the growing acceptance and adoption of stablecoins for practical applications like remittances and trade finance.Photo by Marjan Blan on UnsplashIncreasingly important role in trade financeImportantly, Circle asserts that USDC can play a role in closing the region's $510 billion trade finance gap. This gap represents the lack of liquidity available to companies for cross-border remittances and credit, particularly affecting emerging markets with capital outflow restrictions. The report underlines how businesses in these markets often struggle to secure funding for international trade, and USDC is emerging as a solution. One notable case study is Taipei-based XREX, which utilizes USDC to build financial pipelines between countries, leveraging the deep dollar liquidity in Taiwan to address the dollar scarcity in other Southeast Asian economies. This exemplifies how stablecoins like USDC are contributing to bridging financial gaps and facilitating international trade in regions with limited access to traditional banking services. Stablecoin-specific regulationThe regulatory landscape in the Asia-Pacific region is also evolving to accommodate stablecoins. Countries like Singapore, Hong Kong and Japan have implemented or proposed frameworks for stablecoin regulation, aligning with the growing importance of digital assets in the financial ecosystem. Circle has become increasingly active within the APAC region. In November, the firm joined forces with Japanese financial services conglomerate SBI Holdings to increase the circulation of USDC within Japan. Having been awarded a Major Payments Institution (MPI) license in Singapore in June, Circle followed that up later in the year by launching a zero-fee USDC minting facility within the city-state. Considering these developments, the Asia-Pacific region, with its large unbanked population and significant digital wallet usage, is predicted to witness quick adoption of stablecoins for cross-border payments.

Web3 chatting app Beoble acquires $2 million in pre-seed funding roundWeb3 social messaging app Beoble announced on Wednesday that it has secured a total of $2 million in pre-seed funding, gaining recognition for its innovative communication service technology and potential for future growth.Photo by Yura Fresh on UnsplashEmpowering individuals in the Web3 eraTargeted at the Hong Kong and Singaporean markets, Beoble is a Web3-based social messenger platform that employs a decentralized encryption network called the Communication Delivery Graph, which allows users to engage in end-to-end encrypted chatting between their digital wallets. It also offers a communication toolkit for integrating decentralized applications (dApps). The service emphasizes giving ownership to individuals rather than corporations, distributing “cat points” to users based on their participation and contribution to the ecosystem, which are then used to determine their eligibility for rewards like token airdrops. It currently supports all EVM-compatible blockchains like Ethereum and Polygon and plans to include others like Solana, Aptos and Sui.“Beoble’s new solution for facilitating communication among Web3 wallets will address the vulnerabilities in control and security that are characteristic of existing Web2 messaging platforms, making it a leader in the Web3 messaging market,” said Beoble CEO Cho Sung-min.Attracting industry giantsIn this pre-seed round, major investors include firms focusing on crypto and blockchain projects such as Digital Currency Group (DCG), HashKey Capital and GBV Capital. Notably, Samsung Electronics’ venture capital arm, Samsung Next, also participated as an investor.Furthermore, Beoble has received acclaim from experts for providing a direct communication channel among Web3 wallet owners and allowing them to conduct non-fungible token (NFT) and peer-to-peer (P2P) transactions. The company was also selected for the Web3 incubation program conducted by internet juggernaut Kakao’s public open-source blockchain, Klaytn, in April of last year.Beoble is currently accepting pre-registration applications for beta testing until Nov. 30 and will launch the beta version on Dec. 2.