In a recent case that has raised concerns among China’s IT and Web3 communities, an unnamed individual was fined 1.06 million Yuan ($144,907) for using a virtual private network (VPN) to access restricted websites as part of their remote work routine for a foreign employer. The individual, who worked as a consultant between 2019 to 2022, used the VPN to access platforms such as GitHub, Zoom, and Twitter. This action violated Chinese laws that prohibit the use of VPNs to bypass the country’s “Great Firewall.” The fine imposed on the individual was equivalent to three years of their salary, reflecting the severity of the offense.
As Hangzhou prepares to host the 19th Asian Games, the city government is airdropping 10 million digital yuan (e-CNY), amounting to $1.37 million, to incentivize food and beverage spending. This initiative allows anyone within the municipality of Hangzhou to receive the e-CNY airdrop for use in food delivery platforms. The vouchers, denominated in e-CNY, offer reimbursement of up to 20% to 30% of the value of purchased food items and can only be tendered through select food delivery platforms. It is worth noting that these vouchers are only valid for five days. This airdrop follows a previous effort by Hangzhou to boost the adoption of the central bank digital currency earlier this year, when they airdropped 4 million e-CNY.
Hong Kong police have detained 15 individuals in connection with the collapse of cryptocurrency exchange JPEX, which operated as an unlicensed exchange. Since mid-September, the police have received over 2,392 complaints, totaling 1.5 billion Hong Kong dollars ($191.6 million), related to the Ponzi scheme. The investigation led to the seizure of 8 million HKD in cash and the freezing of bank accounts worth 77 million HKD, suspected of being proceeds of crime. JPEX was widely promoted in Hong Kong before its collapse, making this potentially one of the most significant Ponzi schemes in the history of the city. The Hong Kong Securities & Futures Commission had issued a warning prior to the collapse regarding JPEX’s status as an unlicensed exchange.
Despite falling victim to a wallet hack orchestrated by North Korea’s Lazarus Group, Hong Kong-based crypto exchange CoinEx has announced the resumption of deposits and withdrawals. The hack resulted in the theft of over $70 million worth of users’ cryptocurrencies. CoinEx has updated the deposit addresses of all crypto assets as part of its new wallet system, rendering old addresses invalid. The exchange clarified that the incident did not affect its cold wallets and that the CoinEx User Asset Security Foundation would bear the financial losses. Multiple blockchain security firms have attributed the hack to North Korea’s Lazarus Group, and CoinEx has offered a generous bounty for the return of the stolen funds.
Chinese tech conglomerate Alibaba aims to establish its own wallet service through a partnership between its subsidiary, Alibaba Cloud, and crypto custodian Cobo. This collaboration intends to create an enterprise wallet-as-a-service solution, allowing developers and organizations to integrate crypto wallets into their software. The partnership will leverage Cobo’s custodial wallet and multi-party computation technology to develop the Alibaba Cloud wallet. Cobo has significant experience in the crypto custody space, holding partnerships with over 500 institutions. This initiative reflects Alibaba’s interest in advancing security, performance, and accessibility in the digital wallet infrastructure for Web3 applications.
East Asia continues to witness significant developments across various sectors, including technology and finance. From the enforcement of VPN regulations in China to the Ponzi scheme investigation in Hong Kong and the recovery efforts of hacked exchanges, these events shape the region’s digital landscape. Additionally, Alibaba’s venture into the wallet service domain further exemplifies the growing interest in cryptocurrencies and blockchain technology. As the region’s economies and industries evolve, it is crucial to monitor these developments and their potential impact on the global market.
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