Banking Difficulties Remain in Hong Kong for Crypto Start-Ups

Blockchain Solutions Provider Block Odyssey Launches NFT Ticket Service, “MakeDrop”Korean blockchain solutions startup Block Odyssey said Monday it is launching an NFT-based ticket issuance service dubbed “MakeDrop” in an effort to revolutionize ticketing and event services in the era of Web3.Photo by Andrey Metelev on UnsplashLimitations of traditional digital ticketsUntil now, major ticket reservation platforms have made it challenging for event organizers to streamline the ticketing process for events such as corporate or campus gatherings, concerts, festivals, and more.Event organizers have thus had to manually send notifications via text messages and emails, print paper tickets, and directly manage overall ticket sales and distributions. The absence of tools to identify ticket holders from attendees also makes it difficult to accurately determine participation and contribution ratios.Blockchain meets ticketingBut with the rapid advancement of digitized ticket issuance, NFT tickets have been gaining traction as a transparent and secure solution to such challenges. These tickets are verified and stored on a blockchain, setting them apart from traditional forms of digital tickets such as barcodes.About MakeDropBlock Odyssey’s MakeDrop is an open service that allows anyone to easily create, issue, and manage one-of-a-kind NFT tickets with individual ownership rights and transaction history. If secondary ticket transactions occur, all ownership changes can be verified on the blockchain, making it possible to block attempts at fraudulent or repetitive secondary trading.The service is particularly convenient for users, as they can automatically generate a wallet address for storing their NFTs by logging in to social media accounts without having to install a separate cryptocurrency wallet.As for event organizers, they can swiftly issue mobile tickets without using third-party ticket reservation platforms. Ticket invitations are sent to recipients via KakaoTalk, South Korea’s most popular messaging app, making the service more accessible as well. Those who have not received an invitation can still apply for participation if the event is public. Upon acceptance by the organizer, they will receive an approval notification through KakaoTalk, Block Odyssey explained.Participants can then present the NFT ticket’s QR code on the day of an event, and organizers can conduct real-time validation using the QR check feature provided by MakeDrop.Notably, while traditional ticket reservation platforms often do not share ticket holder information with event organizers, MakeDrop allows independent information management for all events. This allows organizers to identify low-engagement or idle members and offer more benefits to loyal participants.As part of its website launch promotion, MakeDrop is currently holding an event to distribute 100,000 free NFT tickets. The company also plans to release a mobile app in the future after incorporating user feedback and enhancing functionalities.

Korean Crypto Exchanges Promote Horizontal Cultures to Attract Job SeekersDuring a recent seminar organized by the ruling People Power Party’s Digital Asset Committee, Korean crypto exchanges emphasized the importance of horizontal corporate cultures to attract job seekers, according to a Daily Hankook report.©Pexels/Anna TarazevichThe event was attended by employees from various fintech companies and banks, including Naver Financial, Finda, KakaoBank, and Kbank.DunamuBae Jin-hee, a recruiting manager at Dunamu, the operator of Korean crypto exchange Upbit, spoke about the company’s history and culture. Dunamu was founded in 2012 by Song Chi-hyung, and since then, it has launched several projects, including news curation service Newsmate, listed share trading app Stockplus, crypto exchange Upbit, and unlisted share trading app Ustockplus. In addition to these projects, Dunamu has also entered the NFT and metaverse markets with enterprises like Upbit NFT, 2nd block, and Levvels.Bae highlighted Dunamu’s horizontal organizational culture, which promotes respect for and consideration of diverse employee opinions. The company has no dress codes and encourages the use of English names to reduce hierarchical communication barriers. Dunamu also offers benefits like housing loans, high-end laptops, and adjustable desks to its employees.CoinoneHyung Yoon-sun, the human resources team leader at Coinone, another Korean crypto exchange, also spoke at the seminar. Like Dunamu, Coinone also boasts a horizontal corporate culture, which helps eliminate communication barriers. The company has implemented software that enables employees to work together on documents in real time, which has speeded up work processes.Hyung underscored Coinone’s commitment to security, demonstrated by its ISMS and ISO27001 certifications, and 24-hour control system. Employee benefits at Coinone include preferential loans, family-inclusive insurance plans, health check-ups, and long-term leaves.Hyung noted that Coinone previously focused on enhancing its exchange functionalities and hiring developers, but now it is seeking individuals who can contribute to the exchange’s sustainable management in compliance with financial authorities’ standards. Such roles involve anti-money laundering, transaction support, and legal support.

US DOJ Charges Two Russians With Mt. Gox HackTwo Russian nationals have been charged by the US Department of Justice (DOJ) for their involvement in hacking of the Japanese cryptocurrency exchange Mt. Gox, and in causing the collapse of the infamous exchange.Photo by Tingey Injury Law Firm on UnsplashCulpable for collapseThe indictment, which has been unsealed, was originally filed on June 7, and identifies the individuals as Alexey Bilyuchenko, 43, and Aleksandr Verner, 29. They are accused of not only hacking the exchange but also conspiring to launder approximately 647,000 bitcoins, which is valued at around $17.1 billion based on Bitcoin’s unit price on Friday.Additionally, Bilyuchenko has been charged with collaborating with Alexander Vinnik to operate the illicit exchange known as BTC-e between 2011 and 2017. BTC-e was shut down by U.S. law enforcement in 2017, and Vinnik was later extradited from Greece to the U.S. in 2022 on charges of running BTC-e and engaging in money laundering.Mt. Gox, which experienced a major theft, declared bankruptcy and closed its operations in 2014. Bilyuchenko and Verner played a significant role in the theft, leading to the exchange’s insolvency, according to Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. The indictment states that “in or about September 2011, [the defendants] and their co-conspirators gained and caused others to gain unauthorized access to the Mt. Gox server in Japan.”BTC-e exchange money launderingFurthermore, it is alleged that Bilyuchenko utilized his ill-gotten gains from the Mt. Gox theft to establish the BTC-e exchange, which facilitated global money laundering activities for criminals. US Attorney Ismail J. Ramsey for the Northern District of California stated that Bilyuchenko and his co-conspirators operated a digital currency exchange that enabled criminal entities, including hackers, ransomware actors, narcotics rings, and corrupt officials, to launder billions of dollars.In March, there were reports from CoinDesk about movements of BTC-e funds on the blockchain. An exchange wallet linked to BTC-e made its first transaction since 2017, transferring approximately 3,299 bitcoins to a crypto wallet in November 2022. Additionally, six years ago, the exchange wallet sent around 10,000 bitcoins to two unidentified recipients. However, the recent DOJ filing does not specify whether these recipients were Bilyuchenko and Verner.Slow processMeanwhile, the long-suffering creditors of the hacked exchange are only beginning to reach the final stages of the bankruptcy process. Japan’s bankruptcy process is incredibly slow and it’s taken the best part of ten years for it to reach the distribution phase. It became apparent in April that the bankruptcy estate was moving to distribute $4.5 billion in cash and digital assets to creditors. It’s understood that the process will be completed in October.While creditors are taking a haircut in bitcoin terms, on a US dollar basis, they are not fairing out badly given that the leading cryptocurrency has seen massive dollar price appreciation in the intervening years.