Circle moves towards further APAC expansion via MHC Digital partnership

Animoca Brands Holding $3.4B in Cash and ReservesDigital entertainment, blockchain and gamification firm Animoca Brands provided an update on its financial position on Thursday, disclosing $3.4 billion in cash and assets as held on its balance sheet and in tokenized reserves as of April 30.Photo by regularguy.eth on UnsplashA financial breakdownThe Hong Kong-based Web3 firm published the interim financial report to its website. Breaking that down further, the company is holding $194 million in cash and stablecoin reserves. Additionally, $566 million is being held in liquid digital assets. This includes reserves of $SAND, the native token of the Ethereum-based Sandbox virtual metaverse.Beyond this, Animoca holds $2.7 billion in a varied portfolio of digital asset reserves, linked to its majority owned Web3 subsidiaries and portfolio companies. The firm outlined that it intends to release additional financial updates in the near future. That will include an audited financial statement for 2020. Furthermore, a summary statement of business activity for 2022 will be released, together with similar business highlights pertaining to Q1, 2023.Adjusting to changing market conditionsIt’s likely that Animoca took the decision to release this data at this point to bolster confidence in the company, off the back of a number of announcements that may have led some in the industry to question the overall financial health of the company.According to a report published in March by Reuters, Animoca Brands cut its target for its metaverse fund by 20% to $800 million. The scaling back was understood by many crypto sector commentators to be a reaction by the company due to changing market conditions within the crypto space. It was the second such adjustment the company made. In November 2022, the firm was working on the new fund, initially proposing a target of $2 billion. Once January came around, Animoca took the decision to scale that target back by half to $1 billion.Subsequent to reports of the fund scale-back being published, Animoca Brands CEO Yat Siu reacted, telling one crypto media outlet that “the claim that the Animoca Capital fund target was ‘cut’ from $2 billion to $1 billion is not correct, because $1 billion has always been within the range declared.”Playing down the news further, the company added: “There’s no doubt that the FTX and banking crises have had a serious impact on available venture capital, but fundraising for the Animoca Capital fund is in progress. When the raise is concluded, we will inform the market with the appropriate details, including the final size of this fund.”Siu stated that as the source of that report was an unnamed source, it was difficult to figure out the agenda of that person in broadcasting that claim.Animoca is perceived in the industry as a key player, particularly so when it comes to NFTs, blockchain-based gaming and the metaverse. The firm is classed as a Crypto Top 40 company by Forbes, while being a winner of Deloitte’s Technology Fast 50 award. Deloitte’s Technology Fast 50 program ranks fast growing companies based upon their percentage revenue growth over the course of three years.

OKX Ventures, the investment arm of the well-known crypto exchange and Web3 technology company OKX, has recently disclosed a strategic investment in Singapore’s Orbiter Finance. Developing ZK-proof technologyThe investment marks a significant step forward in advancing the evolution of blockchain infrastructure, given that Orbiter Finance has achieved recognition for its innovation in the process of developing its zero-knowledge (ZK) technology-based omni-chain rollup on the Ethereum network. This initiative goes beyond Orbiter Finance's initial role as an asset cross-rollup bridge. Over the last two years, Orbiter has processed over 12 million transactions with a total transaction volume surpassing $7.8 billion. The protocol has amassed a user base of over three million and cultivated a community exceeding 700,000 users and enthusiasts.Photo by Shubham Dhage on UnsplashOrbiter Rollup announcementAccording to a series of posts on the X social media platform over the course of the weekend, the project is gearing up to launch a ZK-tech-based instant omni-chain rollup on Ethereum. A standout feature of the protocol is the integration of ZK Simplified Payment Verification (SPV) to authenticate Layer 2 transactions on the mainnet and combat fraudulent re-layers via the Ethereum Virtual Machine (EVM).  This development introduces a secure, efficient, low-cost and rapid communication mechanism for Ethereum, with the added security benefits of ZK-SPV enabling Orbiter Finance to grant complete access to the "Maker" role. This marks a significant milestone in achieving decentralization within blockchain infrastructure. Dora Yue, founder of OKX Ventures, expressed enthusiasm about spearheading the strategic investment in Orbiter Finance. She highlighted the protocol's ability to overcome traditional bridge limitations, specifically in terms of speed, and its crucial role in enhancing the efficiency of cross-chaining between various Layer 2s and the Ethereum mainnet. Other investors in the project include Redpoint China, Hash Global and Skyland Ventures. Supporting 19 networksCurrently supporting over 19 Layer 2 rollups and a multitude of native Ethereum assets, Orbiter Finance is positioning itself as a vital infrastructure component for the Layer 2 ecosystem. Yue commended the team's ongoing commitment to product upgrades and their dedication to ensuring a more decentralized and trustless foundation for the Layer 2 ecosystem's growth in 2024. With an initial capital commitment of $100 million, OKX Ventures is focused on exploring and supporting the best global blockchain projects, fostering cutting-edge technology innovation, and investing in projects that provide long-term structural value. The venture aims to nurture innovative companies by offering global resources and leveraging historical experience in the blockchain industry. Orbiter Finance also maintains an openness to incorporating additional networks. It has established strategic partnerships with key players such as Arbitrum, Optimism, Polygon, Linea, zkSync, Base, Starknet, Scroll, Manta Network and others. In this manner, it has solidified its position in the ecosystem. Notably, the protocol announced a collaborative strategic partnership with Ingonyama earlier this month, taking a step forward in advancing ZKP acceleration. Ingonyama is a next-generation semiconductor company specializing in ZK-proof technology. With that, it is actively exploring the integration of ICICLE, a GPU library for zero-knowledge acceleration, into Orbiter's ZKP system through multiple meetings and code-sharing initiatives.  

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.