Circle CEO Sees Role for Yuan-Backed Stablecoins in Hong Kong

North Korean Hackers Take Off With $100M Atomic Wallet HoneypotHaving reported last week on a $35 million hack of Atomic Wallet users’ funds, an update on the matter reveals that the situation is much worse than originally thought, with losses now exceeding $100 million.Photo by Kenny Eliason on Unsplash5,500 wallets compromisedThe attack has sent shockwaves throughout the crypto community, raising concerns about the security of decentralized wallets. Atomic Wallet, an Estonia-based project known for its non-custodial approach where users take full responsibility for storing their assets securely, has been hit hard by this unforeseen breach.Elliptic, a crypto compliance analysis company, published an update on the situation on Tuesday. According to that blog article, it estimates that approximately 5,500 crypto wallets have been compromised, meaning that losses have risen to more than $100 million, highlighting the severity of the attack.Despite the significant impact on users, Atomic Wallet has yet to provide an explanation regarding the root cause of these substantial losses. Users have taken to social media in frustration, demanding clarification from the company. Surprisingly, the company’s last direct update on Twitter dates back to June 7, leaving users feeling even more anxious.User frustrationOne user, Ezra Carlson, expressed frustration, questioning why Atomic Wallet didn’t warn users when they were aware of the ongoing hack. Carlson tweeted: “@AtomicWallet why won’t AM give me a straight answer about why they didn’t warn me, knowing full well that they were being hacked, that it was not safe to use AM last week before I made a transfer to my wallet that was then hacked.”Another user, “Real Deal Crypto,” criticized Atomic Wallet’s lack of updates, stating: “Your last update was five days ago — SERIOUSLY?!?!”Although Atomic Wallet acknowledged reports of compromised wallets on June 3, downplaying the impact by claiming that less than 1% of users were affected, the staggering sum of losses indicates a significant breach. Its last communication on the matter came on June 11 when, in responding to a user, the firm said that it continued to investigate and to await Twitter updates on the matter.Hack tied to North Korea’s Lazarus GroupElliptic has connected this heist to the notorious Lazarus Group, a cyber-criminal organization with ties to the North Korean regime, responsible for stealing over $2 billion in crypto assets through various thefts. This attribution marks the first time a significant crypto heist has been openly linked to the Lazarus Group since their $100 million exploit of Horizon Bridge in June 2022.In response to the heist, Elliptic has been collaborating with international investigators and exchanges, mobilizing resources to recover the stolen assets. Their efforts have reportedly led to the freezing of over $1 million worth of funds. However, the thief has adapted its behavior in response to the freezing of assets, turning to the Russia-based Garantex exchange to launder the stolen assets, as noted by Elliptic.This recent attack adds to a series of notable breaches in the crypto industry. Jimbos Protocol experienced an exploit resulting in a loss of $7.5 million, and Tornado Cash faced a malicious proposal that seized control of its governance in May. According to a report by Chainalysis, crypto hackers made off with an estimated $3.8 billion in 2022, with North Korea being responsible for a significant portion of the attacks.

Fujitsu Launches Blockchain Collaboration With Asian Development BankFujitsu, the Tokyo-based global information technology solutions company, announced that it will be launching a new blockchain-based platform at the end of this month.The announcement was made via a press release published to the Japanese company’s website on Thursday. This comes after the successful completion of a year-long pilot trial using Fujitsu’s blockchain technology, ConnectionChain. The trial focused on enhancing cross-border settlements of securities in various regions, including Japan, China, South Korea, and Southeast Asian nations, as stated in the company’s press release.Photo by Shubham Dhage on UnsplashInitial trial project successBuilding upon the positive outcomes of the trial project, Fujitsu is set to introduce the Fujitsu Web3 Acceleration Platform at the end of June. The pilot initiative commenced in January 2022 in collaboration with the Asian Development Bank, based in the Philippines, along with ConsenSys, a blockchain infrastructure company, enterprise technology firm R3, and Soramitsu, a blockchain tech company headquartered in Tokyo.Fujitsu intends to further explore the potential of blockchain technology and the decentralized nature of the emerging internet wave known as Web3 to foster market connections and societal growth. The company is part of a consortium of prominent Japanese firms that announced the establishment of a “Japan Metaverse Economic Zone” on February 23. By leveraging blockchain and the metaverse, which is an essential component of Web3, Fujitsu envisions opportunities for expansion and development across various industries and economies.Metaverse use caseThere’s a growing need for a genuine metaverse to serve as a hub that connects different industries, emphasizing the suitability of blockchain for this purpose. Companies often have their own Application Programming Interfaces (APIs) that they prefer to use exclusively. To overcome this fragmentation, a transparent and decentralized medium is required, which blockchain technology can provide.Fujitsu is a significant player in the Japanese digital technology services sector, with consolidated revenues of 3.7 trillion yen ($28 billion) for the fiscal year that ended on March 31, according to information available on its website. The company’s commitment to exploring the potential of blockchain and its involvement in the creation of the “Japan Metaverse Economic Zone” showcases its interest in driving innovation and connectivity in the evolving digital landscape.Late last year, the company entered into a strategic agreement with SettleMint, a low-code platform for blockchain application development, in an effort to accelerate development of its enterprise blockchain and track and trust solutions. In February, the firm announced the launch of its Web3 Acceleration Platform, which it describes as “a future community for users in start-ups, partner companies, and universities working to build the next generation of Web3 applications and services.”As Fujitsu prepares to launch its new platform, the industry eagerly anticipates the impact it will have on cross-border settlements and market connectivity. With the potential for blockchain and the metaverse to revolutionize industries and economies, Fujitsu’s foray into this space adds further confidence in Web3 development given the company’s stature.

Thailand's government has recently secured approval for a $14 billion digital handout program as part of its economic recovery strategy. The program hasn’t come about without considerable debate and a backdrop of concerns expressed about the Southeast Asian nation's sluggish economic growth. According to Reuters, the decision was confirmed by Deputy Finance Minister Julapun Amornvivat, who stated that the Office of the Council of State, an advisory panel, found no legal obstacles to utilizing state budget funds for the initiative.Photo by Oleksandr P on PexelsDigital handout programThe digital handout program, a key policy of the ruling Pheu Thai party, involves distributing 10,000 baht (approximately $300) to digital wallets set up for each of the 50 million Thai citizens. This financial injection aims to stimulate spending within local communities, providing a much-needed boost to the economy. While the program has faced concerns about potential inflation risks due to Thailand's slow economic growth, the government has argued that it will ultimately benefit the economy. Julapun emphasized that the government plans to proceed with the scheme in May, funded through borrowing. Council of State and opposition party concernsEarlier reports had indicated that the Council of State had initially advised against the government's plan to enact a loan bill for the digital wallet scheme. Concerns were raised about potential violations of constitutional articles, including Article 140, which requires the government to offset any loans outside the budget bill in the next fiscal budget. In addition to inflation worries, the opposition expressed concerns about a potential breach of Article 53 of the 2018 State Fiscal and Financial Discipline Act, which permits off-budget borrowing only in urgent situations. Despite these concerns, the Office of the Council of State ultimately found no reason to prohibit the cabinet from borrowing to fund the program. Thailand's move towards a $14.3 billion cash handout program, termed the "digital wallet" program, is expected to commence by May. Prime Minister Srettha Thavisin affirmed this timeline after the Council of State's approval. The program, allowing Thais to receive funds via a mobile app, aims to spur consumption and overall economic growth. Election campaign giveawayThe idea of the digital asset giveaway was first floated by the Pheu Thai Party (PTP) in April of last year as part of its election manifesto. Subsequently, the party won the election in August, with Srettha being installed as Prime Minister. That appointment was interpreted as being a positive one by crypto advocates, given that Srettha had worked with crypto and blockchain-related technologies in his previous business dealings. Critics, including some economists and former central bank governors, argue that the handout plan could be fiscally irresponsible and fuel inflation. Prime Minister Srettha, who is also the finance minister, plans to discuss the stimulus plan and related matters with the central bank governor. The Thai Chamber of Commerce anticipates a 3% year-on-year growth in the first quarter of 2024, with an annual growth rate of 3.2%, driven by tourism and exports. The digital wallet scheme, if implemented as planned, could potentially add 1.0-1.5 percentage points to this year's growth, according to the chamber.