P2E Game Covenant Child Developer Partners with Pala for Global NFT Collaboration

Compliance and Cooperation — A Necessary Formula for Combatting Crypto CrimesFrom common scams like voice phishing to threats of violence, the involvement of cryptocurrencies in crimes against the general public is steadily on the rise both in South Korea and abroad.Photo by Bermix Studio on UnsplashAccording to blockchain data analysis firm Chainalysis, the scale of cryptocurrency-related crimes and hacking on a global scale has decreased by 45.2% and 23.5%, respectively, compared to last year. However, financial losses resulting from smaller ransomware attacks, including phishing scams, are showing an upward trend.Authorities and industry figures alike are increasingly emphasizing the need for close cooperation to combat this growing issue, as existing regulations and legal frameworks remain insufficient to do so.Chainalysis and crypto exchange Binance co-hosted a policy summit in Seoul on Tuesday called “Securing the Future of Crypto,” where experts gathered at the Courtyard Marriott hotel to discuss compliance and cooperation between the public and private sectors in fighting crypto crimes.Challenges and complexities in crypto investigations“The Korean National Police Agency receives dozens of reports of financial losses and urgent requests for account freezes every day, with 80% of them pertaining to Binance,” said Kim Min-jae, an investigator at the National Police Agency’s International Cyber Cooperation Division.Citing a recent case of a voice phishing scam targeting a woman in her 60s, Kim said that authorities were able to proceed with the investigation within 30 minutes after receiving information from the exchange. However, addressing crimes beyond large cryptocurrency exchanges like Binance, such as those involving decentralized finance (DeFi) systems or foreign exchanges, poses a more difficult challenge due to the lack of proper measures to deal with them.Lee Soo-pyeong, a cybercrime investigator at the Korean National Police Agency’s Cyber Investigation Division, also noted that although domestic cases are relatively easier to investigate, there have been many cases — such as the appalling Nth Room case that caused an uproar throughout Korea in 2020 — that involved overseas accounts and exchanges.Steps for effective crime controlWhat measures, then, should authorities and corporations take in order to deal with such issues? Lee stressed the importance of cooperation among international judicial bodies and adherence from businesses to enhance the response to increasingly sophisticated crypto crimes.Know Your Customer (KYC) standards — the guidelines used in investment and financial services to verify customers’ identities and assess their risk and financial profiles — play an important role in this regard. However, “There are no platforms yet, including major exchanges like Binance, that provide us with personal information through KYC measures when funds are laundered,” Kim explained. He expressed hopes for a system jointly established by relevant entities, including local exchanges, that will enable swift criminal investigation.Lee also highlighted the importance of compliance from foreign companies, stating, “While it’s possible to request mutual legal assistance in criminal matters from the International Criminal Police Organization (Interpol), active cooperation from foreign companies is essential.”From an international point of view, Jarek Jakubcek, Head of Intelligence and Investigations APAC at Binance, pointed out that upholding international standards and standardized processes is important, given the fact that crypto crimes transcend borders. While some countries excel in compliance and enforcing anti-money laundering (AML) policies, others fall short, leading criminals to exploit these disparities.Recently, there have been criminals who move their funds through blockchain networks. The development of bridge technology, which facilitates cross-chain asset transfers, has led to laundering techniques becoming more and more sophisticated. However, he assured that tracing funds is still possible, although doing so has become harder than before.The amalgamation of these circumstances has thereby ushered in the era of Know Your Transaction (KYT). While exchanges have traditionally been obligated to perform Know Your Customer (KYC) procedures to prevent money laundering, they must now go beyond verifying user information and analyze customer transaction data in order to understand where money is coming from and how it flows, Jakubcek said. To achieve this, he argued, they must request information from users and work with on-chain data analysis solution companies like Chainalysis to secure real transaction data. Alec Zebrick, Manager of Investigations in the Asia-Pacific region at Chainalysis, added that leveraging on-chain data allows the verification of most transactions.In the rapidly evolving crypto landscape where crimes are still a force to deal with, experts agree that reinforcing compliance and cooperation between exchanges and authorities is imperative.

Do Kwon Out On Bail Following AppealDo Kwon, the South Korean Co-Founder of Singapore-headquartered Terraform Labs, has been granted bail in Montenegro following a court appearance last week.Photo by Tingey Injury Law Firm on UnsplashAppeal dismissalThe appeal brought by state prosecutors was dismissed by a Montenegrin court according to a statement released by the courts on Friday. The Basic Court in Podgorica confirmed that the State Prosecutor’s Office’s appeal against an earlier bail agreement was rejected, allowing Kwon and Terraform Labs’ chief financial officer Han Chang-joon to await further legal proceedings under house arrest in Montenegro.The court reinstated the original bail terms set during a hearing on May 12, requiring both individuals to pay 400,000 euros ($436,000) each to secure their release from custody. Kwon and Han are now under strict bail conditions and are not permitted to leave Han’s legal residence in Montenegro.According to the court statement: “The court appreciated the fact that they are persons who are not Montenegrin citizens, which is why it accepted their statements about the value of the property they own, which were supported by concrete evidence.”The Montenegrin court found, following the first appeal, that the original decision to permit bail was not based on a sound assessment of “concrete evidence.” That allowed prosecutors to overturn that original decision, which has itself been overturned to permit bail once again.Local police will closely monitor both individuals, and any violation of the supervision measures or departure from the residence will result in the forfeiture of the bail amount. To ensure compliance and discourage flight attempts, Kwon and Han provided personal and financial information to the local authorities, including evidence of property ownership and a sales contract for an apartment, parking space, and basement owned by Han. Kwon also submitted an invoice for a vehicle and bank account statements.Alleged fake passportsKwon and Han were arrested in Montenegro in March 2023 for allegedly using false travel documents while attempting to leave the country. Their original passports had been confiscated in South Korea in October 2022.The court acknowledged that verifying the authenticity of the Belgian passports and identity cards held by the defendants would require additional time. However, it deemed the agreed-upon bail amount sufficient to ensure their presence during legal proceedings.International interestDespite being granted bail in Montenegro, Kwon remains wanted in multiple jurisdictions. South Korean authorities seek to extradite him for investigation into the collapse of the Terra ecosystem, which caused an estimated $40 billion loss in the cryptocurrency market in June 2022. Interpol has also issued a Red Notice for Kwon in connection with the charges in South Korea, and he faces several fraud charges in the United States.The recent decision in Montenegro allows Kwon and Han temporary freedom while they await further legal proceedings. However, their legal troubles extend beyond Montenegro, with ongoing investigations and charges in South Korea and the United States casting a shadow over their future.The pair are due back to appear before a Montenegrin court once again on June 16. Prosecutors have three days in which to file another appeal of the latest bail decision.

Delabs Games Opens Pre-Registration for Global Open Beta Test of Rumble Racing StarKorean game developer Delabs Games has opened pre-registration for the global open beta test of its PC-based Web3 game Rumble Racing Star on October 11 at 06:00 UTC.Photo by Mateo on UnsplashBringing expertise and colorful charactersRumble Racing Star was directed by veteran developer Choi Beong-ryang, who is known for working on fan-favorite casual racing games like KartRider and ZIPI Racing. Popular profile picture (PFP) non-fungible token (NFT) characters with dynamic and whimsical features have been integrated into the gameplay, creating a unique experience and exciting racing controls for players.The pre-registration for Rumble Racing Star’s open beta test is being carried out on the game’s official website. It will be open to users around the world from now until October 25, 06:00 UTC. More detailed information can be found on the website as well.“We have incorporated distinctive PFP NFT characters and an accessible, dynamic arcade racing gameplay. We hope that Rumble Racing Star, a casual Web3 game that people of all ages can enjoy, will receive lots of attention and love,” said Kwon Joon-mo, CEO of Delabs Games.Social media promotionsTo celebrate the pre-registration event, Delabs Games also said that it has planned various engaging events on global social media platforms like Discord and Twitter.