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$6.5B overseas remittances lead to investigation of Korean banks

South Korean banks are being investigated for their part in facilitating $6.5 billion in suspicious overseas remittances which have been tied to companies arbitraging cryptocurrency. 

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South Korean banks are being investigated for their part in facilitating $6.5 billion in suspicious overseas remittances which have been tied to companies arbitraging cryptocurrency. 

The Financial Supervisory Service ordered an investigation into South Korean banks last month after identifying a significant amount of overseas remittance transactions at the end of June.

The investigation found that a majority of the $6.5 billion remitted overseas between Jan. 2021 and June 2022 came from crypto exchange accounts before being sent out of the country suggesting some Korean companies are exploiting the Kimchi premium.

The Kimchi premium is the gap in cryptocurrency prices in South Korean exchanges compared to foreign exchanges. Investors buy crypto from foreign exchanges and sell them on local Korean exchanges for a profit. 

Regulators have been troubled about Kimchi premium trading as it encourages capital flight from the country.  Currently, the kimchi premium sits at a modest +3.37% but was above +20% as early as last April.

Reports from Shinhan Bank and Woori Bank found that most of the money remitted was first transferred out of domestic crypto exchanges to various corporate accounts of Korean companies. These large remittances have raised red flags that investors are using huge sums of money to exploit the Kimchi premium.

The FSS is now expected to issue sanctions toward Shinhan and Woori for allowing the greatest amount of remittances.

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Bitcoin price risks drop to $71K as Trump tariffs hurt US business outlook

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Bitcoin is setting its sights on the $71,000 mark as market conditions shift in response to geopolitical and economic developments, including a new tariff agreement and weakening U.S. business sentiment.

Recent market activity suggests that Bitcoin is benefiting from concerns over traditional economic indicators, with investors turning to digital assets as a hedge against economic uncertainty. A rare slump in U.S. business outlook has fueled speculation that risk assets, including Bitcoin, could see increased inflows.

Additionally, ongoing global trade negotiations and tariff adjustments have contributed to market volatility, prompting investors to seek alternative stores of value. Analysts suggest that if macroeconomic pressures persist, Bitcoin could continue its upward trajectory, potentially testing the $71,000 resistance level.

Despite short-term fluctuations, Bitcoin remains a focal point for investors navigating inflation concerns, regulatory shifts, and global economic trends. The coming weeks will be critical in determining whether Bitcoin can sustain its momentum and break through key price barriers.

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Crypto donations top $1B in 2024, gain traction after Myanmar, Thailand quake

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Changpeng “CZ” Zhao, the former CEO of Binance, has donated 1,000 BNB to aid relief efforts following a powerful earthquake that struck the Thailand-Myanmar border region. The donation, valued at approximately $600,000, aims to support those affected by the disaster and assist in recovery operations.

The earthquake caused significant damage in several areas, displacing residents and impacting local infrastructure. CZ’s contribution highlights the growing role of cryptocurrency in humanitarian aid, providing fast and transparent relief funding.

The donation will be distributed to organizations working on the ground to deliver emergency assistance, including shelter, food, and medical supplies. Crypto-based aid is increasingly being utilized in disaster response efforts due to its efficiency in reaching affected communities without the delays of traditional banking systems.

As the affected regions begin the recovery process, the crypto community continues to demonstrate how blockchain technology can play a meaningful role in global humanitarian initiatives.

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Hackers are selling counterfeit phones with crypto-stealing malware

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Security researchers have uncovered a wave of counterfeit Android devices preloaded with malware designed to steal cryptocurrency, posing a significant threat to users worldwide. The infected devices, which mimic popular smartphone brands, contain malicious software capable of hijacking digital wallets and siphoning funds.

The malware, embedded at the firmware level, allows attackers to gain remote access, intercept sensitive data, and execute unauthorized transactions. Because the malicious code is deeply integrated into the device’s operating system, it is difficult to detect and remove, making it a persistent threat.

Cybersecurity experts warn that unsuspecting buyers may unknowingly expose their crypto holdings to risk by purchasing these compromised devices from unverified sellers. Users are urged to exercise caution by only purchasing smartphones from trusted retailers and manufacturers.

The discovery highlights the growing sophistication of cybercriminals targeting the cryptocurrency sector. As mobile-based crypto transactions become more common, security measures such as hardware wallet usage and multi-factor authentication are increasingly essential to safeguard digital assets from emerging threats.

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