Further JPEX Controversy Due to DAO Plan

Japanese Prime Minister Shigeru Ishiba announced his resignation on Sept. 7, citing completed trade talks with the United States and growing dissent within the ruling Liberal Democratic Party (LDP). While the political transition follows the party’s defeat in July’s upper house elections, Ishiba’s departure also creates uncertainty for Japan’s crypto and Web3 agenda, which he had championed. Just two weeks earlier, at the WebX2025 event, Ishiba pledged stronger state backing for Web3 initiatives, noting their potential for addressing Japan’s demographic challenges and driving long-term economic transformation. He highlighted token-based community governance pilots, integration of Web3 at the Osaka Expo, and a five-year startup growth plan centered on digital industries. His exit now raises questions about whether these priorities will carry the same weight under new leadership.Photo by taro ohtani on UnsplashLeadership contest brings policy uncertaintyPotential successors signal diverging approaches. As per a BeInCrypto report, former Economic Security Minister Sanae Takaichi, who topped an August Nikkei approval survey with 23% support, is regarded as favoring tighter oversight. Agriculture Minister Shinjiro Koizumi, in second place with 8%, has shown greater receptiveness toward digital assets. According to Bloomberg, Finance Minister Katsunobu Kato is also considered a contender. Earlier, he emphasized balancing investor protection with space for innovation, noting the rapid uptake of crypto among Japanese investors. The LDP is preparing for a leadership election on Oct. 4, with 295 lawmakers each casting one vote and an equal 295 votes allocated proportionally to the party’s 1.03 million members, for a total of 590 ballots. Until then, investors and industry players are watching for signals on whether Japan’s digital asset roadmap will remain a priority. Adoption advances beyond politicsBeyond politics, adoption is accelerating across Japan’s financial system. Japan Post Bank plans to tokenize deposits on a permissioned blockchain by 2026 using the DCJPY token developed by DeCurret DCP, a Mitsubishi UFJ–backed venture. With $1.29 trillion in deposits across 120 million accounts, the move could streamline settlement of tokenized securities. Corporate strategies are also shifting. Last month Tokyo-based game developer Gumi said it would acquire 2.5 billion yen ($17 million) worth of XRP between September 2025 and February 2026, following its earlier 1 billion yen ($6.8 million) Bitcoin purchase this year. The company described XRP as central to its expansion into international remittance and liquidity networks led by its largest shareholder, SBI Holdings. Japan’s crypto footprint abroad is growing as well. Coincheck, a leading exchange in Japan, is entering Europe through the acquisition of Aplo, a French-licensed digital asset brokerage. The deal follows Coincheck’s Nasdaq listing last year via its Netherlands-based holding company. 

Remitano Struck by $2.7M Alleged HackHacks have been an unfortunate constant in the crypto and DeFi space with that reality having been compounded by news that Seychelles-based crypto exchange Remitano is believed to have been the victim of a $2.7 million heist.Photo by Growtika on UnsplashSuspicious transactionsIt’s understood that the firm encountered highly suspicious transactions, with the $2.7 million having seemingly vanished from its wallet, all at the hands of a single account. The incident unfolded on Thursday and has left blockchain analysts speculating about a potential security breach.The Remitano hot wallet initiated transfers to an address devoid of any prior transaction history. These transfers amounted to approximately $1.4 million in Tether (USDT), $208,000 in USD Coin (USDC), and 104,000 ANKR tokens (valued at $2,000 at the time). Those transfers raised concerns about the security of the platform.Israeli blockchain analytics platform Cyvers promptly sounded the alarm, notifying the crypto community about these suspicious transactions that had drained significant sums from Remitano’s coffers. This sudden event raised concern within the crypto space and naturally among Remitano customers.Tether freezes wallet addressAmid the growing apprehension, Tether, the issuer of USD stablecoin USDT, took decisive action by freezing the address associated with the alleged attacker. This swift intervention effectively halted any further movement of $1.4 million worth of drained cryptocurrency. Tether’s proactive response could potentially have prevented additional loss, preserving customers’ assets from further depletion.Remitano had remained notably silent initially in the wake of this incident, declining to issue any formal statement regarding the breach. It has since acted, as on Friday, it published a statement relative to the issue on its website. The absence of communication from the exchange had only fueled greater speculation surrounding the incident. However, the statement outlined:”On September 14, 2023, our Security Management team discovered a data breach from a third-party source that had compromised some of our sensitive information. As a result, a small amount of funds from the exchange’s hot wallets were transferred to suspicious wallet addresses through unauthorized withdrawal transactions.”Remitano, recognized as a peer-to-peer cryptocurrency exchange and payment processor, primarily caters to users in emerging markets across several countries, including Pakistan, Ghana, Venezuela, Cambodia, Kenya, Malaysia, India, South Africa, Vietnam, and Nigeria.The firm sought to reassure its customers:”As of now, Remitano ensures that users’ assets have NOT been and will NOT be affected by this incident. We are working tirelessly to uphold our commitment to ensuring the security and protection of your crypto assets.”Remitano was established in 2015; it is operated by Babylon Solutions Limited, which is headquartered in the Seychelles.Unfortunately, this episode adds to the troubling trend of cryptocurrency exchange hacks witnessed in 2023. Authorities in the United States have attributed these attacks to the Lazarus Group, a notorious cyber-crime organization allegedly linked to the North Korean government which has wreaked havoc globally although disproportionately so within the Asian region.

Bithumb Live Files for BankruptcySouth Korean cryptocurrency exchange Bithumb’s live commerce platform Bithumb Live — an attempt at business diversification — has filed for bankruptcy. The platform entered bankruptcy proceedings last year, brought on by business difficulties and various suspicions of embezzlement involving its CEO.Photo by Melinda Gimpel on UnsplashAccording to legal sources on Monday, the Seoul Bankruptcy Court declared Bithumb Live’s bankruptcy last Monday. The court plans to hold creditor meetings and inspections on November 28 to incorporate creditors’ opinions into the bankruptcy proceedings and assess the status of the company. Major companies like LG Uplus, SK Telecom, SK Magic, and Lotte Card are among the platform’s creditors.Bithumb Live’s backgroundBithumb Live was founded in September 2021 by Bithumb and Bucket Studio, who each invested KRW 6 billion (approximately $4.4 million). Bucket Studio is a content distribution company that gained considerable attention with the global success of the Netflix original series “Squid Game” last year because it holds a 15% stake in Artist Company, an entertainment planning agency co-founded by “Squid Game” lead actor Lee Jung-jae and actor Jung Woo-sung. In particular, Bucket Studio’s CEO Kang Ji-yeon is the sister of Kang Jong-hyun, who is embroiled in allegations related to the ownership of Bithumb.Bithumb and Bucket Studio each hold a 37.5% share of Bithumb Live, making a combined ownership of over 75%. Bithumb Live, led by Kang Ji-yeon, had been established with the intent to create a commerce platform with various features like a metaverse, non-fungible tokens (NFTs), and cryptocurrency payments. After its establishment, it announced that it would challenge its key competitor Naver’s prominent live shopping platform by preparing to sign deals with 15 different companies.Financial hardshipsHowever, the platform hit a roadblock just one year after its establishment and found itself unable to escape financial difficulties. According to last year’s business report, Bithumb Live’s liabilities exceeded its assets by approximately KRW 248 million and the platform recorded a net loss of KRW 10.2 billion. Unable to withstand such losses, it announced an indefinite temporary closure via its internal messenger to employees in October of last year. The employees ended up working only four hours a day, resulting in a more than 50% reduction in working hours. Subsequently, the number of employees, which was 73 in September, plummeted to just four in January of this year, essentially signaling a total stop to business operations. In the first half of this year, Bithumb Live’s net loss amounted to almost KRW 1.1 billion.Management entanglementsOn top of these financial strains, the company was also plagued by Kang Ji-yeon and her brother Kang Jong-hyun’s owner’s risk, which encompassed allegations of embezzlement and misappropriation. In July of this year, Kang Ji-yeon was sent to trial on charges of embezzlement and misappropriation at Bucket Studio. Along with her brother and former Chorokbaem (CRB) Group Chairman Won Young-sik, she was accused of granting call options on convertible bonds held by Bithumb affiliates Vidente and Bucket Studio for free to companies controlled by Won’s children between December 2021 and July 2022, inciting damages worth approximately KRW 58.7 billion to the respective companies. In the process, she was also found to have received KRW 32.2 billion in acquisition payments. Kang Jong-hyun had been detained and on trial since February of this year.Bithumb Live’s largest shareholder, Bucket Studio, is also in a tight spot. Back in June, the Korea Exchange imposed a penalty of three points on Bucket Studio for reversing its disclosure. The company had been penalized five points the previous month after withdrawing its decision to issue convertible bonds. In particular, the studio also recorded an operating loss of KRW 7 billion and a net loss of KRW 195.6 billion last year based on consolidated financial statements. In the first half of this year alone, it suffered an operating loss of KRW 896 million, raising red flags for its management.