Laos to Prioritize Blockchain for Digital Transformation

Poly Network Exploit Results in Billions of Nonexistent TokensPoly Network, the China-based interoperability platform, was targeted by hackers over the weekend in a major attack that resulted in the creation of billions of tokens out of thin air. It’s the second time in as many years that the cross-chain bridge has been exploited by hackers.The attacker exploited a vulnerability in Poly Network’s cross-chain bridge tool, allowing them to generate a substantial number of tokens that previously did not exist, as reported by Arhat, the Founder of 3z3 Labs, on Twitter.Photo by Shubham Dhage on UnsplashNetwork suspensionThe Shanghai-based project team behind Poly Network promptly informed its users on Sunday that its services were temporarily suspended due to the attack. The platform assured its users that it was diligently assessing the extent of the breach and the impact on assets. They emphasized their commitment to safeguarding users’ assets and urged everyone to remain calm.The hacker, at one point, held nearly $43 billion worth of cryptocurrency in their digital wallet, according to DeBank, a decentralized finance portfolio tracker. This staggering figure was corroborated by PeckShield, a blockchain data and security firm.Bridge vulnerabilitiesBridges play a crucial role in the Web3 ecosystem, enabling users to transfer assets across different networks. However, they have often been attractive targets for hackers. In this attack on Poly Network, the hackers issued themselves nearly 100 million BNB and $10 billion worth of BUSD, the Binance-branded stablecoin, on the layer-2 network Metis, revealed Colin Wu, a Chinese crypto journalist.Similarly, on the Heco network, approximately 100 trillion units of the dog-themed meme coin, Shiba Inu, were created. Additionally, a significant number of altcoins were generated on Polygon and Avalanche networks.Illiquid Metis tokensMetis clarified that the BNB and BUSD tokens issued on its network by the hackers are effectively worthless since there is no available sell liquidity. Poly Network also locked these tokens, ensuring they cannot be utilized. Arhat of 3z3 Labs acknowledged that the impact of the Poly Network attack was somewhat mitigated by the lack of liquidity, which prevented the hackers from realizing substantial gains on Metis.However, on other networks like Ethereum, the stolen tokens were exchanged on decentralized exchanges. Arhat estimated that the attacker managed to convert only a small portion of the tokens, amounting to approximately $400,000 worth of crypto, while the remaining tokens lacked liquidity and were essentially worthless.SlowMist, a blockchain security firm, suggested that the hacker’s total gains were higher. They reported that over $4 million worth of digital assets from the attack had been cashed in, including 1,500 Ethereum worth $3 million and 93 billion SHIB worth $700,000.Poly Network had previously made headlines in 2021 when it experienced a historic attack, considered the largest exploit in decentralized finance at the time. The project suffered a loss of $600 million as funds were siphoned away from Ethereum, Binance Smart Chain, and Polygon. However, the hacker eventually returned $342 million worth of stolen crypto, and Poly Network took steps to repay affected users.

Dunamu’s Luxury Watch Trading Platform Thrives with Blockchain EdgeViver, a luxury watch trading platform and subsidiary of Dunamu, which operates the Upbit cryptocurrency exchange in South Korea, has been experiencing continued success amidst an ever-growing interest in luxury items as real-world assets and lucrative investment drivers.Photo by Christian Wiediger on UnsplashLeveraging blockchain technology and a showroom experienceThis success can be attributed to the platform’s commitment to taking advantage of Dunamu’s cutting-edge blockchain technology and infrastructure, setting it apart from other luxury platforms and boosting competitiveness in the market.Another major factor is the Viver showroom in Gangnam, southern Seoul, which allows visitors to try on and purchase watches, get their own watches polished and checked, and speak with a professional watch curator.Moon Jae-yeon, CEO of Viver, unveiled plans to surpass global competitors like the US’ Watchbox and Europe’s Chrono24 within five years by growing the app into a global vertical commerce platform focused on luxury watches.Rolex’s finest dominate Viver’s diverse collectionIndeed, Viver has become a popular trading hub for timepiece enthusiasts and investors across the country, and the platform recently revealed in a special article for its 100th magazine issue that its best-selling watch is the Rolex Submariner — a globally renown line of high-end divers’ wristwatches.Different models from the Submariner line have taken up the top three ranks of most sold watches. Coming in first is the Submariner Date in Oystersteel, priced at KRW 16.5 million (approximately $12,500) on Viver, which accounted for 16.5% of total sales. Following close in second place with just two fewer watches sold and a 16.2% share of sales is the Submariner in Oystersteel, which is set apart by its lack of a date indicator. Last but not least, the Submariner Date in Oystersteel and yellow gold took up 13.7% of sales.The watch sold the fastest on the platform was the Rolex Datejust 41 in Oystersteel and white gold. Sporting the iconic Jubilee bracelet and fluted bezel, the timepiece took just a minute and 42 seconds from registration to sale.Though Rolex has evidently claimed its superlative title as the platform’s most popular brand, Audemars Piguet secured its own as the most expensive. The priciest timepiece to ever be sold on Viver is the Royal Oak model for KRW 130 million.Exponential growthThe platform also added four new brands in June — Patek Philippe, Omega, Cartier, and Vacheron Constantin. Consequently, total transaction value, product registrations, and product purchases in July increased by 34%, 116%, and 36%, respectively.As a result of these combined efforts, both monthly trade count and transaction volume on Viver have spiked by more than 15 times since its establishment last August, while the number of users has grown by about 10 times over the past year.The number of products directly registered by sellers also increased by about 30 times compared to the first month since the platform’s launch.

A recent survey in South Korea found that 20.3% of crypto investors have fallen victim to financial losses. Conducted by the Korea Financial Consumers Protection Foundation in late December, the survey polled 2,500 adults aged 19-69, with respondents able to select multiple loss categories. Investors in their 60s were most vulnerable, reporting a 25.3% loss rate. Exchange-related problems constituted the majority of incidents (72.8%), followed by online chat room scams (44.7%) and investment fraud (35.5%).Photo by Growtika on UnsplashExchange failures lead lossesAmong exchange-related losses, 40.6% of users couldn't sell assets due to system failures, while 11.5% lost digital assets through exchange hacking. Overall, exchange technical issues accounted for 52.1% of reported losses, with another 20.7% losing assets when exchanges closed completely. Chat group scam victims experienced various forms of fraud: 23.2% paid for worthless or false information, while 21.5% suffered financial losses through market manipulation or proxy trading schemes. Investment scams included fake crypto projects or fraudulent firms (18.0%), deceptive exchanges (10.3%), and other scams (7.2%). Most victims (75.1%) reported losses under 10 million won (approximately $6,945), with 34.6% losing less than 1 million won. Due to these relatively small amounts, 67.7% took no action following their losses. Of the 32.3% who sought help through various channels, 73.9% were unable to fully recover their funds. Problem worsening across Asia and beyondThis problem extends beyond South Korea. In neighboring Japan, police reported 19,038 crypto fraud cases in 2023, with damages totaling 45.26 billion yen (about $300 million), according to Chainalysis, citing Japanese National Police Agency data. These figures surpass 2022 numbers, indicating continued growth in fraudulent activities. A recent case highlighted by the Fukushima Minyu Shimbun involved a Soma City woman in her 50s who lost approximately 116.6 million yen ($780,000) to scammers impersonating police officers. The fraud began with a fake customer service call, followed by deceptive claims about fraudulent accounts and threats of arrest, which led her to create cryptocurrency accounts and transfer funds before eventually reporting the scam. Elderly at highest risk as fraud surgesThe FBI's Internet Crime Complaint Center's 2024 report further confirms this trend, documenting 149,686 crypto fraud complaints in the U.S. with $9.3 billion in reported losses—66% higher than in 2023. Notably, people over 60 were the most affected demographic, consistent with the Korean study's findings.