Crypto fund manager secures capital markets license in Singapore

DMM Crypto, the crypto exchange, blockchain gaming and NFT arm of Japanese e-commerce and internet firm DMM, has taken the decision to shut down the Seamoon Protocol. Economic zone concept projectTaking to X on Nov. 15, the project outlined that it has decided to cancel the economic zone concept project, Seamoon Protocol. The project added:”We would like to express our deepest gratitude to the business operators who have provided us with so much support thus far, as well as to all those who have placed their hopes in this project and shown us their kind support, and we would like to offer our heartfelt apologies.” The move suggests a sudden change in the fortunes of the project. As recently as last August, DMM Group had announced a collaboration with Progmat, a distributed ledger technology (DLT) platform for tokenization and stablecoins, with a view towards looking into the issuance of a stablecoin. The stablecoin was intended to act as a reserve currency, providing backing for Seamoon Protocol’s treasury pool while also acting as a price stabilization mechanism. At the time, DMM Crypto CEO Nagato Kasaki had said that the Seamoon Protocol had been launched in order to create a space “where a global community could experience DMM’s cultural universe and co-create new experiences together.” Notwithstanding that goal, no new services are planned to replace the Seamoon Protocol.Photo by Shubham Dhage on UnsplashLaunched in 2023, Seamoon Protocol ran on the DM2 Verse, a layer-2 network associated with the Oasys blockchain. DM2 Verse was designed to act as a community hub for the Seamoon Protocol, hosting NFT drops, games, tournaments and collaborations. Activity on Seamoon was powered by its own native SMP token. Changing business environmentNorbert Gehrke, a commentator on the Japanese fintech sector, outlined in a Medium blog post that Seamoon was abruptly terminated “due to recent rapid changes in the business environment that have created challenges for the project’s sustainability.” The company didn’t provide detail on the nature of the challenges encountered which impacted on the sustainability of the project. With the shutdown, issuance of the SMP token will be discontinued. Furthermore, new service applications for the Seamoon Protocol platform have been suspended. It’s unclear what will now happen with existing services which have been built on the platform. The company has suggested that this matter is under discussion.  One exception is the Kanpani Girls RE:BLOOM project, a Web3 game that was the first of five games that had been envisaged for the protocol. The company has confirmed that this project will be terminated.  In-game notices will be provided at a later stage to provide users with advice regarding refunds and compensation for game items. The game will be wound down by the end of January. Once decisions have been made relative to other services and projects, the company will make announcements on the social media channels of those affected services. DMM Crypto received investment from Neoclassic Capital last month, with a view towards pursuing a global expansion strategy.

South Korean Prosecutors Fail to Recover Do Kwon’s AssetsSouth Korean prosecutors have disclosed that they have been unable to find the millions of dollars that Do Kwon, CEO and Founder of Terraform Labs, made from the crypto business.©Pexels/GratisographyOverseas assetsThe latest development in the case suggests that Kwon may have tried to hide his assets overseas, making it more challenging for authorities to recover those funds.Prosecutors claim that Do Kwon transferred funds from his personal accounts to overseas bank accounts under his mother’s name. Additionally, he allegedly used cryptocurrency to purchase real estate and other assets in the United States, which he then registered under his mother’s name. This tactic is commonly used by those seeking to evade detection and protect their assets from seizure.Binance halt requestSouth Korean authorities are understood to have reached out to global cryptocurrency exchange, Binance, requesting it to halt any withdrawal request associated with Kwon. Binance confirmed to CoinTelegraph that it is cooperating with the request, stating: “We provided Korean law enforcement authorities with the requested assistance. Since we cannot comment on ongoing law enforcement investigations, for any further comment please reach out to the prosecutors.”Blockchain forensicsThe situation surrounding Do Kwon’s case is not uncommon in crypto. Although there are blockchain forensic analysis specialists who collaborate with government authorities in tracing digital assets, the task is not without its difficulties. By analyzing the blockchain, investigators can trace the flow of funds and identify the individuals involved in illicit activities. This technology has already been used in a number of high-profile cases, including the 2014 Mt. Gox hack and the 2020 Twitter hack.Nevertheless, the anonymous nature of blockchain transactions makes it much easier for individuals who engage in fraudulent or illegal activities. However, as cryptocurrency becomes more mainstream, governments around the world are cracking down on those who attempt to take advantage of the system.Tightening regulationIn South Korea, authorities have been working to regulate the cryptocurrency industry and protect consumers from fraud. The government has implemented a number of measures, including requiring cryptocurrency exchanges to register with the Financial Services Commission and banning anonymous transactions. Despite these efforts, however, incidents of fraud and embezzlement continue to occur.The fight against cryptocurrency-related crime is far from over. As the industry continues to grow and evolve, criminals will continue to find new ways to exploit the system. It is up to regulators and law enforcement officials to remain vigilant and adapt to these changes in order to protect consumers and ensure the integrity of the financial system.In the case of Do Kwon, the investigation is ongoing, and it remains to be seen what the final outcome will be. Prosecutors estimate total proceeds of Do Kwon’s alleged crimes to amount to 91.4 billion won ($71 million) while 414.5 billion won ($316 million) has been identified relative to Terraform Labs more broadly.

LINE NEXT Inc, a U.S.-based Web3 subsidiary of messaging app giant Line Corporation, has made a strategic partnership with ReadON, a global Web3 content provider running a “Read to Earn (R2E)” app called “ReadON DAO.” The service helps users develop routine reading habits by providing tokens as rewards. Photo by GuerrillaBuzz on UnsplashThis partnership will enable LINE NEXT to feature various digital products on its “DOSI,” a global digital commerce platform where users can freely create and trade digital items including NFTs.  In cooperation with ReadON in the marketing and business sectors, LINE NEXT plans to offer a number of innovative products to over one million users of ReadOn.  Various digital collaborative merchandise On Feb. 21, the two companies are scheduled to roll out digital collaborative merchandise inspired by “Catto,” the brand character of ReadOn, with a plan to introduce DOSI x ReadON pass tickets that benefit users of both platforms. Limited edition items offering exclusive perks and tokens that can be used on ReadOn will also soon be available for purchase. ReadOn’s previous digital items have proven to be popular: items introduced in January were sold out within just 10 seconds after they were released, with other items also selling out within 30 minutes over four consecutive days. LINE NEXT is committed to collaborating with ReadON to launch more services that can reach a broader audience. Initiative to make Web3 more accessible to the publicIn a related development, LINE NEXT launched the official web and mobile versions of DOSI in January. Under the initiative to make Web3 more accessible to the public, LINE NEXT strives to expand the range of products available on DOSI.