Klaytn Foundation Denies Embezzlement Allegations Involving KLAY

Leading crypto exchange platform OKX has disclosed plans to discontinue its mining pool services, marking a strategic shift for the platform.Photo by engin akyurt on UnsplashService shutdown within one monthThe move, outlined by the firm in a notification to platform users on Friday, involves ceasing new user registrations effective immediately. Existing users will be granted access to the mining pool until Feb. 25. All mining pool-related services on OKX will be completely halted by Feb. 26. Mining Pools data reveals that OKX holds the 36th position among the top 70 bitcoin-focused mining pools, boasting a total hash rate slightly exceeding 496 TH/s. The decision to phase out mining pool services was attributed to "business adjustments," as communicated by OKX, though further details were not provided regarding the specific nature of these adjustments. Previously, OKX's mining pool supported various proof-of-work cryptocurrencies and offered staking services. However, over recent years, many supported assets had been terminated. Presently, the website only displays bitcoin, litecoin and ethereum classic pool services. Once accounted for 5% of all BTC blocks minedOKX's bitcoin mining pool had once accounted for around 5% of the blocks mined on the network. However, a setback occurred on October 16, 2020, when the crypto exchange temporarily suspended withdrawals due to one of its private key holders “cooperating with a public security bureau in investigations.” This led to a significant drop in hashpower connected to the pool, from 9,000 PH/s to 20 PH/s. The pool's current 528 TH/s now represents less than 0.0001% of bitcoin’s total hash rate. Industry trend formingThis strategic move by OKX reflects the evolving landscape of the crypto industry and the challenges faced by mining pools, particularly in the context of regulatory and operational adjustments within the market. The decision may even amount to a formative trend, given that global crypto exchange platform rival KuCoin made a similar move back in August. At the time, KuCoin outlined its plans to temporarily suspend its bitcoin and litecoin mining pools. Although it suggested a temporary halt to such services, there was no indication of when such mining-related services would resume. A company spokesperson stated:“We will see if it is needed to restart based on the market and users’ demand in the future.” Bitcoin halving pressuresOKX’s decision to discontinue mining pool services comes ahead of bitcoin's anticipated fourth halving in April, which is expected to reduce miner rewards from 6.25 to 3.125 BTC. The halving is casting a shadow over the mining sector. Miners' business cost per bitcoin mined is going to increase significantly. Some industry commentators speculate that the break-even point for miners will reach an unsustainable level. NASDAQ-listed Riot Blockchain, in particular, is being singled out as potentially being susceptible due to its cost structure. Miners have had a difficult couple of years, working their way through the bear market component of the last market cycle. That period saw leading miner Core Scientific declare bankruptcy. The company has since restructured and has been relisted on the NASDAQ.  

Regulated blockchain and digital asset solutions provider Paxos has announced the launch of its latest digital asset, the Global Dollar (USDG), a U.S. dollar-backed stablecoin. The company outlined in a press release published to its website on Nov. 31 that the USDG stablecoin is being issued by its local Singaporean corporate entity, Paxos Digital Singapore Pte. Ltd., with the product being regulated by the Monetary Authority of Singapore (MAS).Photo by Alexander Grey on UnsplashMAS compliant offeringThe company claims that the offering is “substantively compliant” with the stablecoin regulatory framework that MAS intends to roll out imminently. Paxos paved the way for this latest product offering back in July when it obtained a Digital Payment Token license from MAS, enabling it to issue U.S. dollar-backed stablecoins within the city-state. In terms of distribution, Paxos intends to partner with global crypto exchanges, wallets and platforms in an effort to get this new product out into the market.  DBS Bank partnershipIts first partnership with regard to the Global Dollar has already been struck with DBS Bank, Singapore and Southeast Asia’s largest bank based on assets held. DBS will play a role in the custody of USDG reserves and in cash management relative to the project.  Ronak Daya, Head of Product at Paxos, said that “USDG offers a trusted solution with a top-tier banking partner in DBS that will be the catalyst to drive stablecoin innovation and enterprise adoption at a global scale.” This latest product launch appears to be similar to the approach the company has taken in the Middle East. Back in June a United Arab Emirates (UAE)-based affiliate company launched the Lift Dollar (USDL), a yield-generating U.S. dollar-backed stablecoin under the regulatory oversight of the Financial Services Regulatory Authority (FSRA), the regulator within the Abu Dhabi Global Market (ADGM) free zone and international financial center. Running on EthereumThe USDL stablecoin started out on the Ethereum network, with it launching on the Arbitrum network in October. A similar roadmap has been set for USDG, with it launching on Ethereum while Paxos maintains that it “will be issued on more blockchains in the near term.” The Stellar network is likely to be one that it expands to in the future. In October the firm announced an integration with the Stellar Development Foundation, with a view towards expanding stablecoin adoption. Daya said that “enterprise interest in stablecoins has never been higher than it is today, but the market lacks a solution that combines regulatory compliance with real economic incentives for enterprises.” The company has developed an expertise in the issuance of digital assets, with USDG being its sixth such issuance. Last week Paxos outlined that it had launched a stablecoin payments platform with the objective of simplifying global transactions for payments providers and merchants. Paxos has also partnered with the Trump family venture, World Liberty Financial, which plans on launching a U.S. dollar stablecoin with the help of Paxos. The firm’s CEO, Charles Cascarilla, also encouraged both U.S. presidential candidates recently to embrace stablecoins as a mechanism through which to safeguard the continuing influence of the U.S. dollar on a global basis. 

Two Russian nationals have been referred to prosecutors in South Korea for allegedly facilitating the illegal transfer of roughly 58 billion won ($42.2 million) to Russia using USDT, a U.S. dollar-pegged stablecoin. According to a report by KBS News, the Seoul branch of the Korea Customs Service (KCS) announced the charges on May 22, citing violations of the country’s Foreign Exchange Transaction Act. The suspects, a man and a woman both in their 40s, reportedly operated an unauthorized money exchange business to carry out the transactions.Photo by Polina Tankilevitch on PexelsOver 6K transactionsAuthorities suspect the pair of repeatedly using USDT to conduct cross-border transfers between South Korea and Russia. From January 2023 to July 2023, the duo allegedly completed 6,156 illegal remittance transactions, either sending funds abroad or receiving payments on behalf of others, totaling the full 58 billion won in question. Investigators revealed that the two suspects, who hold permanent residency in South Korea and have overseas Korean status, used the messaging app Telegram to solicit clients. When transferring money to Russia, they reportedly collected funds via kiosks in convenience stores that allow users to send money without a bank account. The collected cash was then used to purchase USDT to complete the remittances. According to customs officials, the suspects would either send the cryptocurrency directly to a crypto wallet specified by the customer, or forward it to accomplices in Russia. These accomplices would then convert the crypto to cash and distribute rubles to recipients through local channels. Illicit crypto use by businesses The operation also handled export payments for South Korean businesses. The suspects reportedly accepted payments from Russian importers on behalf of Korean used car dealers and cosmetics exporters. In these cases, associates in Russia would collect ruble payments from importers, convert the funds into USDT and send the cryptocurrency to contacts in Korea. The funds were then exchanged for Korean won and deposited into the accounts of the businesses. Customs officials believe that the group’s services became particularly appealing after the start of the Russia-Ukraine war in 2022. In the wake of U.S. and international sanctions against Russia, legitimate financial channels for cross-border transactions became restricted, prompting some companies and individuals to turn to illegal alternatives. The Korean export companies involved in these transactions have been fined. The Seoul Customs Office emphasized that illegal money exchange operations are often exploited for criminal activities such as drug trafficking, voice phishing and gambling. In response, the agency committed to stronger enforcement and pledged to spare no effort in combating unlawful financial operations. Scams grow inside the borderThe surge in crypto-related financial crimes in South Korea extends beyond cross-border transactions. According to a recent report by Maeil Business Newspaper, Kakao Pay—a local mobile payment platform—has detected around 70,000 cases of malicious apps linked to virtual assets over the past month. Of those, 80% were associated with Ponzi schemes, where fraudsters lure victims with promises of high returns before disappearing with the funds. A Kakao Pay spokesperson noted that new forms of security threats are emerging alongside the rapid growth of the crypto market, adding that the company is prioritizing the development of stronger security systems.