Suspicious Arrest of Crypto Scam Reporter, Japan’s Pro-Crypto PM: Asia Express

Crypto Fraud and Human Trafficking Investigator Charged in Cambodia

Prominent Cambodian journalist Mech Dara has been arrested and charged with “inciting civil unrest” after he shared photos in a now-deleted Facebook post of steps leading to a religious site being demolished with stones.

But human rights groups suspect he may have been targeted in an investigative report on criminal crypto syndicates in Cambodia.

These compounds are reported to act as hubs for “pig farming” scams, where criminals gradually build trust in their victims, often using romance in the process, to “fat” their targets before convincing them to invest in fraudulent cryptocurrency.

Cambodia, along with its Southeast Asian neighbors, has emerged as a hub for these pork farming operations. Estimates of the global damage vary, but a study by John Griffin, a finance professor at the University of Texas, puts the loss at more than $75 billion between January 2020 and February 2024.

Dara's in-depth coverage of human trafficking and pork smuggling in Cambodia earned him a 2023 Hero Award from the US Department of Human Trafficking. The investigative work particularly exposed the connection between these criminal rings and Cambodian Senator Ly Yong Phat.

In September, Phat was sanctioned by the U.S. Treasury Department for alleged involvement in human trafficking and forced labor related to crypto scams, which the Cambodian government has condemned.

Dara's arrest has sparked outrage from human rights groups and press freedom advocates, who see it as a major failure of accountability in exposing journalism and criminal syndicates.

According to Amnesty International, “incitement has become a starting point against human rights defenders and activists in Cambodia.” The punishment is up to two years in prison.

“Making false information and posting inflammatory messages, defamation, creating false information with malicious intent to incite public anger, confusing and wrong views are not considered freedom of expression, even if the person concerned is truthful.” “A journalist, the act of distorting the facts and creating false information is not considered freedom of the press or freedom of the press,” the Cambodian Ministry of Information said in a statement.

The Ministry of Journalism Background Verification in 2018. It expires at the end of 2022 and has not been renewed, he said, adding that “the press freedom situation in Cambodia is very good.”

Reporters Without Borders ranks Cambodia 151st out of 180 countries in its 2024 Press Freedom Index.

South Korea and the US started a war against North Korea's crypto theft

South Korea and the US will continue to strengthen joint efforts to counter North Korea's reliance on cryptocurrency theft, which covers its weapons program, South Korea's presidential office announced on October 3.

At the Counter Ransomware Initiative meeting in Washington, DC, South Korea's Third Security Adviser, Wang Eun-jong, held a bilateral meeting with US Deputy National Security Advisor for Cybersecurity Ann Neuberger.

Between 2017 and 2023, North Korean hackers stole $3 billion in a series of cyber attacks targeting crypto companies.

In recent months, North Korean hacking group Lazarus has been accused of carrying out several large crypto heists, including the theft of $305 million from Japan's DMM Bitcoin and $235 million from India's WazirX.

In August, the chain ZachXBT reported that at least 21 North Korean developers had infiltrated 25 cryptocurrency companies using fake identities and were earning up to $500,000 a month.

Japan's new prime minister plans blockchain development for Japan's cultural sectors

Japan's newly appointed Prime Minister Shigeru Ishiba took office on October 1, and his policy strategy, along with his cabinet picks, suggests he will follow in the footsteps of his predecessor Fumio Kishida in favoring blockchain solutions to address Japanese society. – Economic problems.

Ishiba's policy framework outlines a plan to modernize traditional domestic industries such as food and tourism using blockchain technology and non-perishable tokens (NFTs) to increase the digital value of these sectors.

“As an old conservative Japanese politician, I doubt Ishiba personally has much to say about crypto,” said Will Fee, a researcher at Japanese consulting firm Yuri Group.

This seems to be a case of following the advice of party bureaucrats rather than individual judgment.

However, Fei says this is positive news for the Japanese crypto landscape, as the key person for the adoption of Web3 remains Masaki Taira, the former head of technology of the ruling Liberal Democratic Party, who was appointed digital minister in the Ishiba cabinet.

“Web 3 adoption can continue from there,” says Fee.

Malaysia has issued bonds linked to sovereign wealth fund partnerships.

The Securities Commission Malaysia (SC) unveiled a series of new initiatives at its annual fintech conference on Oct 1, aiming to drive innovation in the country's capital markets.

Among the key measures announced are plans to enhance the regulatory framework to support the development of security tokenization.

The SC said it has partnered with Kazanah Nasional, Malaysia's sovereign wealth fund, to explore the use of smart contracts and security arrangements to facilitate the issuance of tokenized bonds.

Security tokens are digital assets but differ from cryptocurrencies in that they represent traditional financial securities such as stocks.

The Boston Consulting Group, a “Big Three” management firm, published an optimistic report on security tokens in 2022, predicting a $16 trillion business opportunity by 2030. However, McKinsey & Company, a Big Three firm, disagrees and estimates that the market value of total income token assets is overestimated. Up to $2 trillion.

Malaysia SC It is expected that guidance will be issued early next year to help regulators manage the risks associated with security tokens.

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John Yun

Yohan Yun is a multimedia journalist who has been reporting on blockchain since 2017. He has contributed as an editor to crypto media outlet Forkast and covered Asian technology stories as an assistant reporter for Bloomberg BNA and Forbes. He spends his free time cooking and experimenting with new recipes.