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Our weekly roundup of news from East Asia curates the industry’s most important developments.

HTX exchange hacked… again 

In the fourth hack affecting the HTX (formerly Huobi Global) ecosystem in just two months, the exchange lost $13.6 million via a hot wallet hack that occurred on Nov. 22.

In its Nov. 23 announcement, the exchangepromisedto “fully compensate for the losses caused by this attack and 100% guarantee the safety of user funds,” as well as restore services within 24 hours of the attack. The day prior, the HTX Eco Chain (HECO) bridge was exploited for $86.6 million. An investigation is ongoing.

In September, the HTX exchange was hacked for $7.9 million; this was followed by a $100 million hack against the Poloniex exchange, a related entity, in November. Justin Sun, the Chinese blockchain personality and de-facto owner of HTX (not to mention the owner of Poloniex, founder of Tron and CEO of BitTorrent etc),stated after the attack that “HTX Will Fully Compensate for HTX’s hot wallet Losses. Deposits and Withdrawals Temporarily Suspended. All Funds in HTX Are Secure.” Sun previously also madeassurancesthat “all user assets are #SAFU” in the aftermath of the September hack against HTX.

Huobirebranded to HTXduring this year’s Singapore2049 event in September. Although its executives have repeatedly reassured that the exchange is doing well, the exchange ran into a number ofserious incidentsthis year, including analleged employee revolt.

Justin Sun during Web3 Hong Kong. (Twitter)
Justin Sun blushes as he shares a stage with Nina on April 11.

Binance pleads guilty, settles criminal charges for $4.3 billion

Crypto exchange Binance has agreed to plead guilty to violating the U.S. Bank Secrecy Act, knowingly failing to register as a money-transmitting business, and willfully violating the International Emergency Economic Powers Act. The exchange will pay $4.3 billion in penalties and forfeiture to the U.S. Justice Department.

According to the Nov. 21announcement, Changpeng Zhao, co-founder and CEO of Binance, has also pled guilty to one count of willfully violating the U.S. Bank Secrecy Act. Zhao has since entered his personal plea in the District Court for the Western District of Washington.

At the time, Zhao was granted a $175 million bond that allowed him to reside in Dubai pending his sentencing hearing on Feb. 24. However, the U.S. Department of Justice has since appealed that decision, asking to confine his residence to the U.S. pending the sentencing hearing due to Zhao allegedly possessing an “unacceptable risk of flight.”

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In its indictment, the Department of Justice noted that, in a few noticeable incidents and despite reassurances, Binance facilitated over $1 billion in illicit transactions for Iranian users, the Russian marketplace Hyrdra and cryptocurrency mixer Bestmixer. and it solicited U.S. users without prior registration. Binance was also accused of deliberately masking such actions as “complying with U.S. law would stifle their efforts to grow Binance’s profits, market share, and trading volume.”

The same day, Zhao stepped down as the CEO of Binance. “I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself,” he stated. 

“Binance is no longer a baby. It is time for me to let it walk and run. I know Binance will continue to grow and excel with the deep bench it has.”

While Zhao still owns a majority in the exchange, he will be barred from being involved in the exchange’s everyday operations. Richard Teng, Binance’s global head of regional markets, was named the exchange’s new CEO. In his inaugural statement, Teng stated that the exchange’s fundamentals were “VERY strong” and that Binance is still “the world’s largest crypto exchange by volume.”

Blockchain analytics firm Nansen has noted that despite the guilty plea, it did not witness any “mass exodus of funds” after the incident. While the exchange witnessed nearly $965 million worth of withdrawals, its total holdings increased to $65 billion. On November 23, CZ’s X account was temporarily suspended after removing “Binance” from his profile name. 

U.S. Attorney General Merrick Garland during the indictment announcement. (DoJ)
U.S. Attorney General Merrick Garland during the indictment announcement. (DoJ)

South Korea invites 100,000 people to test CBDC

The Bank of Korea, South Korea, and Central Bank will invite 100,000 Korean citizens to purchase goods with deposit tokens issued by commercial banks as part of its central bank digital currency (CBDC) pilot test. The first of such trials began in October. 

According to local news reports on November 23, “participants will be restricted to using the currency solely for its designated purpose of payment. Other uses, including personal remittance, will not be permitted at this time.” Although the Bank of Korea has not yet decided to whether or not to implement a CBDC, further trials are expected, including an integration simulation system for carbon emissions trading on the Korea Exchange. It said: 

“Recently, the rapid digitalization of the economy has led to a growing demand for a digital form of public currency. This demand is evident in the private sector, where new payment instruments such as stablecoins have been developed and are already widely used in certain sectors.”

Evening in downtown Seoul.
Evening in downtown Seoul. (Source: Pexels)

Zhiyuan Sun

Zhiyuan Sun is a journalist at Cointelegraph focusing on technology-related news. He has several years of experience writing for major financial media outlets such as The Motley Fool, Nasdaq.com and Seeking Alpha.

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African economies show high potential for digital asset adoption

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African economies show high potential for digital asset adoption

South Africa emerges as a leading digital asset hub, driving growth in crypto with proactive regulations and expanding platforms like VALR.

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Angela Rayner promises flagship workers’ law next month as she pledges ‘things can get better’

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Angela Rayner promises flagship workers' law next month as she pledges 'things can get better'

Angela Rayner has promised to bring Labour’s flagship workers’ rights bill to parliament next month as she told her party’s conference: “Things can get better if we make the right choices.”

The government has faced criticism in recent weeks over its pessimistic messaging around the economy, with Prime Minister Sir Keir Starmer warning October’s Budget would be “painful” in order to deal with the £22bn “black hole” he claims was left by the Conservatives.

But while his deputy said the party “can’t wish our problems away”, she said “hope won” when Labour achieved its landslide at the last election, adding: “Change has begun.”

Politics live: Rayner speaks at Labour conference

Speaking on the conference floor on the first full day of Labour’s annual gathering, Ms Rayner said: “Let me be blunt. We can’t wish our problems away. We have to face them. That’s the difference between opposition and government.

“But… things can get better if we make the right choices. Sustained economic growth is the only way to improve the lives of working people, and we’re fixing the foundations to put Britain back on the path to growth. No more talking, but doing.”

The deputy prime minister reiterated her party’s plans to improve renters’ rights, including ending no-fault evictions “for good”, as well as promising a “devolution revolution” in the north of England, and the “biggest boost to social and affordable housing in a generation”.

More on Angela Rayner

But some of the biggest cheers from delegates came over her long-trailed plan to increase workers’ rights across the country, with her promising to bring the Employment Rights Bill to the Commons in October.

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Concerns have been raised over the legislation by some in the business community, with an Institute of Directors’ survey earlier this month citing the bill as a reason for pessimism among firms who fear the impact on their operations.

But the government has sought to play down any divide, and held several roundtables with company leaders in recent weeks to allay their fears.

Championing the bill, Ms Rayner said: “They said we couldn’t do it. Some tried to stop it in its tracks. But after years of opposition, we are on the verge of historic legislation to make work more secure, make it more family friendly, go further and faster to close the gender pay gap, ensure rights are enforced and trade unions are strengthened.

“That means repealing the Tories’ anti-worker laws and new rights for union reps too. A genuine living wage and sick pay for the lowest earners, banning exploitative zero-hour contracts and unpaid internships, ending fire and rehire. And we will bring in basic rights from day one on the job.

“This is our plan to make work pay, and it’s coming to a workplace near you.”

Concluding her speech, the deputy prime minister said: “On 4 July, the people entrusted us with the task of change and hope won. Now is our moment, not just to say, but to do.

“Labour governments of the past took on this same challenge at a time when Britain desperately needed change. They delivered a better Britain when the odds were stacked against them.

“And that is exactly what this Labour government must deliver once again. So conference, let’s get on with it.”

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Angela Rayner to announce renters’ protections at opening of Labour Party conference

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Angela Rayner to announce renters' protections at opening of Labour Party conference

Angela Rayner will set out measures to protect renters from fire safety defects, damp and mould in her speech at the Labour Party conference.

The deputy prime minister, who is also the housing secretary, will commit to “building homes fit for the future” when she opens the party’s first annual gathering since winning the general election.

The package will include bringing forward a Remediation Acceleration Plan this autumn to speed up the removal of unsafe cladding on high-rise buildings.

Deadly cladding remains on more than half of all residential blocks of flats identified as at risk since the Grenfell fire in 2017.

The issue has come back into the spotlight following the conclusion of the inquiry into the tragedy, which found that “systematic dishonesty” contributed to the blaze that killed 72 people.

The announcement of the acceleration plan was thin on detail, but the government said it would go “further and faster to fix unsafe cladding and make existing homes safe”.

Other measures Ms Rayner will announce on Sunday include consulting on a new “decent homes standard” for the social and private rented sectors, and a new law to make landlords respond to complaints about disrepair within legally binding timescales.

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These have already been announced as part of Labour’s Renters’ Rights Bill, which builds on long-awaited legislation that was promised by the Tories but ultimately shelved ahead of the general election.

The law regarding repairs will be named after two-year-old Awaab Ishak, who died as a direct result of exposure to mould in the social home his family rented in Rochdale, Greater Manchester.

Awaab Ishak
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Awaab Ishak

The Conservatives first proposed Awaab’s Law to cover the social rented sector, but Labour will extend it to cover the private sector in a move they say will help tenants in 746,000 homes with reported serious hazards secure faster repairs.

Commenting ahead of her speech, Ms Rayner, who has also pledged to build 1.5 million homes over the next five years, said: “Just because Britain isn’t working at the moment, it doesn’t mean it can’t be fixed.

“We will deliver for working people and, in doing so, show that politics can change lives.

“This Labour government is taking a wave of bold action to not only build the housing our country needs and boost social and affordable housing, but to ensure all homes are decent, safe, and warm.”

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‘All MPs take gifts and donations’

The speech comes as a donations row threatens to overshadow the optimistic mood of the party’s first conference while in government for 15 years.

The prime minister has come under scrutiny over the past week for the more than £100,000 worth of gifts he has accepted, including tickets to football matches, concerts and luxury clothes.

Following days of press coverage on the issue, it emerged on Friday that Sir Keir and his most senior ministers – Ms Rayner and Chancellor Rachel Reeves – will no longer accept donations to pay for clothes.

On Saturday, Culture Secretary Lisa Nandy told Sky News that there had not been an undue influence in gifts accepted by her colleagues but “we don’t want the news and the commentary to be dominated by conversations about clothes”.

She defended the prime minister’s actions as being within the rules, saying that the taxpayer doesn’t fund these things “so MPs will always take donations, will always take gifts in kind”.

She added: “We expect our politicians to be well turned out, we expect them to be people who go out and represent us at different events and represent the country at different events and are clothed appropriately.

“But the point is that when we accept donations for that or for anything else, that we declare them and we’re open and transparent about them.”

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