Fraudster loses $4.8 million stored in Ledgers: manipulated Asia Express

A fraudster has reportedly lost $4.8 million in stolen money after storing the funds in tampered ledgers. Bitcoin and Ether ETF Trading Begins in Thailand, South Korea Blocks 27 Exchanges

Ledger was forced to shut down its sales network across Southeast Asia this week after thieves stole more than $103.4 million from 530 addresses through a manipulated supply chain ledger. But in a small measure of poetic justice, according to Chainalysis, one of the "victims" was himself a con artist.

The blockchain watchdog company reports that the fraudster lost 60 bitcoins, worth about $4.8 million, from three newly purchased ledgers containing spyware that captures key phrases. The ledger thieves put all three of their money in one wallet.

In another twist, the fraudster had run a "task scam" where people were paid to sell fakes and review genuine items. So depending on their awareness, their victims may not have been completely honest either. Chainalysis reports: "Then a 'negative balance' appeared and they were told to top up their money to get paid. So it's possible that the scammer of scammers just got scammed. In crypto, sometimes it turns turtle to the end."

Despite reports of tampered ledgers showing up in Europe that forced electronics retailer MediaMarkt to suspend sales, Ledger insists that all confirmed thefts to date have been in Asia. It has requested sales representatives in Indonesia, Singapore, Thailand, the Philippines, Vietnam, Malaysia, and Hong Kong to remove Ledgers from sale. Trezor has also decided to close some remote dealers in its network starting January 1, because it cannot guarantee that it can maintain the same level of vigilance as it does with dealers closer to home. However, there are no reports of tampered treasures.

In the midst of the worst hardware wallet scandal since the Coldcard hack at the end of July, Ledger decided it was the perfect moment to launch its latest device. Called the Atom, the $849 device combines a cryptographic wallet with Android apps that are kept separate from sensitive wallet operations. The device includes safeguards that Ledger says prevent implants used in Asian robberies and claims it can detect tampering even when it's turned off.

A first look at Ledger Atom. Source: Ledger

South Korean authorities have approved measures to block domestic access to 27 websites operated by unregistered crypto exchanges and other virtual asset service providers, including KuCoin, MEXC, Phemex and Bitrue.

The Financial Intelligence Unit (FIU) said in a statement: "With this decision, blocking measures against illegal virtual asset operators will be applied to internet websites, following the likes of Apple and Google."

This list also includes CoinW, BTCC, BitMart, BingX, DigiFinex and others.

South Korea will tighten cybersecurity requirements after previous investigations into financial institutions found major vulnerabilities in security incidents involving 16 companies, including crypto exchanges.

The Financial Services Commission announced it will pursue cyber security flaws in 130 out of 555 financial firms, seeking improved threat monitoring, more frequent security assessments and stronger accountability for managers, following industry-wide reviews.

Jeonbok Bank has reportedly begun offering bitcoin-backed loans to corporate customers, with a third-party custodian holding the cryptocurrency used as collateral.

The Securities and Exchange Commission of Thailand has finalized rules that will take effect on Friday, allowing crypto exchange-traded funds (ETFs) to list on Thailand's main stock exchange.

Starting with Bitcoin and Ether ETFs, the products must be listed exclusively on the Thai Stock Exchange. Products linked to foreign cryptocurrency ETFs will not initially be permitted, and Thai brokers are prohibited from facilitating investment in foreign cryptocurrency ETFs to anyone except institutions and ultra-high net worth individuals.

However, James Butterfill, head of research at digital asset investment firm CoinShares, told Cointelegraph not to get too excited.

"I expect to have small inflows initially, with tens of millions of US dollars in the first products, a more realistic initial expectation than billions," he said.

Australia's securities regulator launched a consultation on Thursday on proposed capital, holding and trading conditions for crypto platforms as it prepares to implement rules passed in April that expand oversight of the industry.

These offers include three alternative capital models, restrictions on trading platforms for own account and quarterly reporting of wallets with client assets. ASIC is also proposing to allow overseas custody when seeking feedback on safeguards in the event of the failure of a parent company or associated company overseas.

The Australian Securities and Investments Commission (ASIC) also proposed to extend rules on contracts for difference (CFDs) to digital currencies. CFDs allow traders to bet on price changes without owning the underlying asset.

Victims of a Chinese scam seeking to recover 61,000 bitcoins seized by the British government have lost a key legal battle after London's High Court ruled that Chinese law, rather than English law, should govern claims to the assets.

Judge Mark Turner wrote: "The relevant damage occurred in China. The applicants separated their money in China." "Consequent contractual relations were concluded in China."

The dispute stems from an investment fraud scheme orchestrated by Ximin Qian between 2014 and 2017, and assets were seized by British authorities during a money-laundering investigation. The plaintiffs will appeal the verdict in the UK courts.

Coins.ph said it still has a license from the country's central bank despite reports that it may face license revocation for alleged transactions involving overseas gambling operators.

Coins.ph is one of the largest crypto exchanges in the Philippines, and the license risk was reported following restrictions imposed by the central bank on certain incoming transfers related to DCPay Philippines, which operates Coins.ph's peso e-wallet service.

"Coins.ph categorically denies any claim that it knowingly serves overseas gaming or gambling operators," the company said. "Our users' funds are safe; we continue to operate as a BSP-licensed institution," he added.

Binance CEO Richard Teng said during Token2049 that the exchange may add Hong Kong, Korean, Taiwanese and Brazilian stocks to its platform.

Pando Finance's Solana ETF has been launched on the Hong Kong HKEX under the ticker 2831.hk. It is the second such fund and has a fee of 0.6%, which is lower than the first fund from ChinaAMC which charges 0.99% annually.

A Singapore police crackdown in collaboration with local crypto exchanges helped reduce reported losses from crypto scams by 43%.

Revolut has announced that it will open a new office in Singapore, invest S$350 million (US$273 million) over the next five years and increase its local workforce from 170 to 300.