Crypto Conference After-Party Sparks Malaysian Outrage, Hong Kong Victim Loses $3.3M in Romance Scam: Asia Express
Hong Kong authorities report $9 million stolen through romantic cryptocurrency fraud schemes during one week, while Malaysia revokes backing for blockchain event over controversial entertainment choices.
HONG KONG
Romance scams in Hong Kong net $9M in a single week
A woman working as an insurance agent in Hong Kong lost $3.3 million after falling victim to a fraudulent online romance where her fake boyfriend persuaded her to pour money into a bogus cryptocurrency platform.
Hong Kong law enforcement received reports of 25 comparable fraud cases linked to romantic relationships during the period spanning July 24 through July 30, with the combined losses to victims seeking companionship totaling $9 million.
Perpetrators of these schemes usually establish contact with their targets via dating platforms or messaging services, and often dedicate several months to cultivating trust and emotional connection before introducing the concept of cryptocurrency investments.
Victims are guided to websites that mimic authentic trading platforms. These fraudulent sites display fabricated gains to entice victims into depositing increasingly larger amounts of capital. Most victims discover the deception only when attempts to withdraw their funds prove impossible.
Hong Kong news in brief
— JPMorgan Chase granted permission to Hong Kong-licensed digital currency exchange HashKey Exchange to establish a client money account, according to an announcement from the exchange's parent company.
— An operation with ties to Vietnam called Fun Coffee, which had offered annual returns reaching as high as 222%, has collapsed in Hong Kong. Officials are calling it a virtual currency scam operation.
MALAYSIA
Malaysia withdraws support for Blockchain Week after OnlyFans controversy
Coming on the heels of expelling the Network School for accommodating Israeli participants, the Malaysian Government pulled its endorsement of Malaysia Blockchain Week due to an after-party that was set to showcase an influencer with a history in adult entertainment.
A conservative backlash on social platforms emerged following the circulation of promotional materials for an after-party event that would feature local DJ and actress Siew Pui Yi.
She accumulated a substantial audience on OnlyFans, though she departed from the platform in 2022. However, be cautious about looking up her identity on X while in a professional setting, as decidedly NSFW material appears in search results. She currently boasts 22 million followers on Instagram. The organizers of the event ultimately canceled her scheduled performance.
CHINA
Chinese newspaper warns of Bitcoin extortion scam using its name
A state-affiliated publication called China Business Journal has issued an alert that criminals have been masquerading as the newspaper to blackmail companies by demanding Bitcoin payments in return for not publishing damaging stories.
According to the newspaper, fraudsters utilized a Proton Mail email address to reach out to businesses, making false claims that they had uncovered negative information via undercover reporting and issuing threats to publish the content unless they received Bitcoin compensation.
China news in brief:
— Experts from China's national police academy assert they have developed a novel AI-powered system capable of identifying illegal cryptocurrency transactions with accuracy approaching 90%.
—Authorities in China arrested 16 individuals for cryptocurrency money laundering connected to telecommunications fraud operations.
SINGAPORE
FalconX cuts 50% of Singapore staff amid prolonged crypto market slump: Report
Digital currency prime brokerage FalconX has eliminated 10% of its employees worldwide as the company braces for an extended downturn in cryptocurrency markets, according to a Monday report from Bloomberg.
Referencing sources with knowledge of the situation, the report indicated that FalconX is reducing personnel and restructuring its Singapore operations by concentrating on crypto derivatives trading. The firm intends to withdraw its pending license application with the Monetary Authority of Singapore. Despite these changes, the company plans to maintain its Asian presence while pursuing expansion of its European operations.
Prior to implementing the layoffs, FalconX had approximately 350 employees distributed across the United States, the United Kingdom, Singapore and Hong Kong.
Singapore news in brief
— An agreement has been signed by Hashkey Holdings to potentially acquire APEX in Singapore, which stands as one of only three companies in the city state holding both brokerage and exchange licenses from MAS.
SOUTH KOREA
South Korea plans stablecoin rules as opposition pushes crypto tax repeal
The Financial Services Commission (FSC) of South Korea is reportedly preparing to draft a comprehensive Digital Asset Basic Act in collaboration with the ruling Democratic Party.
According to reports, the proposed legislation would encompass regulations for stablecoin issuance and circulation, operational rules for digital asset businesses, exchange entry criteria, disclosure requirements, internal control mechanisms and system-resilience benchmarks.
Currently, Parliament has 10 different bills pending that address digital assets and stablecoins, while disputes have stalled South Korea's progress on finalizing critical components of its second-stage cryptocurrency legislation.
In a separate development, the opposition's legislation seeking to eliminate Korea's planned cryptocurrency taxes has advanced to committee review. Earlier this week, the Government reaffirmed its commitment that the tax changes would take effect on January 1 2027 despite three previous postponements.
South Korea news in brief
— A published report from Hashed and the Solana Policy institute suggests that South Korea should permit increased flexibility for entities issuing stablecoins, offer interim licensing guidance and implement phased stablecoin regulations, prior to finalizing its Digital Asset Basic Act.
— Bithumb, a South Korean cryptocurrency exchange, announced on Monday its intention to seek a preliminary listing review in 2027 and finalize an initial public offering in 2028.
—During June, South Korea experienced 560.3 billion won ($367 million) in stablecoin outflows to foreign exchanges, continuing the nation's pattern of monthly net stablecoin outflows for 18 straight months.
—Law enforcement in South Korea has established a 41 member unit specializing in cryptocurrency tracing and investigations, with a focus on combating drug trafficking operations conducted through Telegram groups.
—A fraudulent Flare Network staking operation swindled $8.5 million from 71 investors.
JAPAN
Bitget to exit Japan, close remaining positions after Dec. 31
Cryptocurrency exchange Bitget announced it will discontinue services for Japanese residents and implement account restrictions in phases.
In a Monday announcement, the exchange revealed it had halted acceptance of new user registrations from Japan residents, with account restrictions scheduled to commence Nov. 1. All positions that remain open on Dec. 31 will be subject to forced closure.
Japan news in brief:
— Game development company Gumi from Japan is set to launch an $18.3 million crypto asset fund this Saturday with SBI Financial Services and financial support from Daiwa Securities Group alongside other investors. The fund's investment strategy will focus primarily on Bitcoin and major altcoins, employing staking, portfolio rebalancing and hedging strategies.
— Worries regarding US Treasury markets served as the motivation behind the US decision to intervene in Japanese yen markets last week.
INDIA
News in brief:
— In a Madras High Court Ruling, cryptocurrency has been legally recognized as "property" that can be subject to trust obligations.
— SB Sekar, Binance APAC Head, contends that India must develop its own rupee backed stablecoins to minimize reliance on USD backed coins such as USDT and USDC.