CPLABS and Protocol Capital to collaborate on blockchain-enhanced autonomous driving in Qatar

In the aftermath of a substantial security breach in November that resulted in a confirmed loss of over $48 million, Kyber Network, the multi-chain decentralized exchange (DEX) aggregator, has taken decisive steps to restructure its operations.Photo by kate.sade on UnsplashWorking towards recoveryCEO and co-founder Victor Tran posted a lengthy message on the X social media platform on Christmas Eve to announce a 50% reduction in the firm’s workforce. The move marks a pivotal moment in the company’s efforts to recover and rebuild. As part of its strategy to ensure sustainability, Kyber temporarily suspended its liquidity protocol initiatives and KyberAI. Despite these challenging measures, the core aggregator and limit order functions remain fully operational. Tran emphasized the company’s commitment to persist and evolve, highlighting its determination to navigate through recent adversities. Despite these challenging measures, the core aggregator and limit order functions remain fully operational. Tran emphasized the company’s commitment to persist and evolve, highlighting its determination to navigate through recent adversities. Zap API additionIn an effort to enhance its services, Kyber Network disclosed plans to introduce the Zap API. This new offering aims to provide decentralized applications, crypto wallets and other DeFi projects with a seamless means to connect their users to liquidity protocols. Tran also revealed that in an effort to support its workforce during the transition, the firm has established a “voluntary database” to assist departing employees in finding new career opportunities. This initiative seeks to connect these individuals with peer projects in the industry. Exploit fall-outKyber Network took to social media on Nov. 22 to advise its KyberSwap Elastic user base of a security incident. With that notification, it advised users to withdraw their funds immediately. Over the next few days, it became clear that $48 million had been exploited on the platform by a hacker. In the immediate aftermath of the incident, the hacker posted a message on the blockchain, stating: “Negotiations will start in a few hours when I am fully rested.” He/she progressed to issuing unusual demands, including gaining complete operational control of the company and temporary ownership of the KyberDAO governance mechanism. The nature of these demands sets this particular exploit apart from others. The Kyber team, however, chose to reject these demands. It chose to respond with a blockchain message of its own, outlining that it was cooperating with law enforcement in an effort to track the hacker. The company, which operates from offices in Hanoi, Ho Chi Minh City and Singapore, also offered the hacker a carrot of a 10% bounty if the hacker agreed to return 90% of users’ funds. Instead, the firm pledged to compensate affected users through the KyberSwap Elastic Exploit Treasury Grant Program. On Dec. 20, the firm provided further details on that grant program, outlining how affected users would be refunded. Furthermore, Kyber Network is actively collaborating with authorities to identify the hacker and recover the stolen funds.Earlier this month, blockchain security firm CertiK issued an alert on social media, outlining that the hacker had moved BNB tokens to the value of $338,000 into decentralized crypto tumbler Tornado Cash.

South Korean financial regulators have decided, at least for the time being, to maintain the current policy requiring cryptocurrency exchanges to partner with only one bank, according to a report from the Seoul Economic Daily.Photo by POURIA 🦋 on UnsplashDominance and money laundering concernsA government official cited concerns that allowing multiple banking relationships could potentially strengthen market dominance by leading platforms and increase money laundering risks. Regulators plan to revisit the issue after monitoring new developments following upcoming regulations that will permit institutional participation in the crypto market. This decision runs counter to a recent proposal put forward by the People Power Party (PPP) ahead of the presidential election that seeks to eliminate the one-bank-per-exchange requirement. Bizwatch reported that while the crypto industry initially supported the removal of this restriction unanimously, opinions have recently diverged among market participants. Divided industryMajor exchanges offering Korean won-based trading are mostly against the potential policy change. Except for Upbit, the country's largest platform, competitors express concern that modifying the rules could weaken their existing banking relationships if more financial institutions choose to partner with the market leader. Conversely, crypto-only exchanges, which cannot offer Korean won trading services, generally favor eliminating banking restrictions. These platforms believe relaxed regulations could create more opportunities to establish banking partnerships. Under current rules, virtual asset service providers must secure real-name accounts from a local bank to offer Korean won trading, placing those without such accounts at a competitive disadvantage. Banks also want changeKorean commercial banks align with crypto-only exchanges in supporting the easing of banking regulations. Jung Jin-wan, CEO of key financial institution Woori Bank, recently called for allowing multiple banks to serve individual crypto exchanges. He argues that the current one-bank-per-exchange system not only undermines systemic stability but also limits customer choice. While an official from a crypto-to-fiat exchange acknowledged the need for eventual reform of the one-bank-per-exchange system to improve customer options and market development, they also pointed out that industry stakeholders hold different views depending on their position in the market. The official said that dominant platforms perceive minimal practical benefits from permitting multiple banking relationships. 

Korbit relists blockchain gaming token WEMIXKorbit, a major fiat-to-cryptocurrency exchange in South Korea, is relisting WEMIX, a cryptocurrency issued by blockchain gaming company Wemade. Korbit’s decision follows in the footsteps of its local competitors, Coinone and Gopax, who have also recently reinstated WEMIX. The WEMIX token is used to pay transaction fees, stake and vote on governance proposals.Starting at 1:00 a.m. UTC on Dec. 7, Korbit users gained the ability to create a WEMIX wallet and deposit the token on the exchange. Trading and withdrawals of WEMIX will be enabled at 3:00 p.m. UTC on the same day.The Korbit exchange only accepts WEMIX deposits originating from the Wemix network. Deposits of WEMIX sent from other blockchain networks, including BNB Beacon Chain, Ethereum and Klaytn, may be processed improperly and carry the risk of becoming irretrievable.Photo by Asa E-K on UnsplashDecision reversal and underlying rationalesOver a year ago, the Digital Asset eXchange Alliance (DAXA), a coalition of the five Korean fiat-to-crypto exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — collectively decided to delist WEMIX from all their platforms. This decision was based on several concerns, including unreliable disclosure of the token’s circulating supply, provision of inadequate and misleading information to investors and inconsistencies in the data provided during the explanation period. These issues collectively eroded trust in the company.However, Korbit has determined that the previously identified issues with WEMIX have been addressed. The exchange observed that the circulating supply of WEMIX has been reduced to a level that aligns with the schedule initially submitted to DAXA. The launch of the WEMIX mainnet rectified the discrepancy where the circulating supply displayed on crypto data platforms like CoinMarketCap was twice the actual figure. Additionally, the collateral that Wemade had deposited in decentralized finance (DeFi) protocol Kokoa Finance has been recovered.The crypto trading platform also believes that Wemade has resolved the problem of providing misleading information to investors by making corrections to its third-quarter earnings report.Regarding data fallacies, Korbit holds the view that the game publisher has taken steps to address the inaccuracies in the data previously provided to the alliance. These efforts to reduce uncertainty and fulfill disclosure responsibilities include several measures: Wemade now live-updates the circulating supply of WEMIX and other pertinent details on its official blog. The gaming company has also entrusted the management of its non-circulating WEMIX supply to Ceffu, the sole institutional custodian for Binance, a global crypto exchange. Furthermore, Wemade now makes announcements about token movements whenever they occur.Restrictions imposed on GopaxMeanwhile, Korbit stated its commitment to complying with voluntary regulations and common listing guidelines established between DAXA members. This statement is particularly noteworthy in light of the recent developments with Gopax. Gopax faced the three-month suspension of its voting rights from DAXA, following the relisting of WEMIX.