South Korea Establishes Permanent Crypto Crime Unit to Combat Fraud and Manipulation

Hodl Topic, January 29th, 2025

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📈 Preview On Today’s News:

1. - South Korea Establishes Permanent Crypto Crime Unit to Combat Fraud and Manipulation 

2. - Coinbase Expands to Argentina Amid Growing Crypto Adoption 

3. - X Partners with Visa to Introduce Direct Payment Solutions 

Keep reading below for more!

Today’s News:

1)

South Korea Establishes Permanent Crypto Crime Unit to Combat Fraud and Manipulation 

South Korea has officially launched the Joint Investigation Unit (JIU), a dedicated crypto crime division aimed at tackling organized criminal activity, including fraud, hacking, and price manipulation in the digital asset space. Initially formed as a temporary task force in July 2023, the JIU has now been made a permanent department under the Prosecutor’s Office Act, with plans to expand its team of prosecutors. The unit comprises multiple government agencies, such as the Financial Supervisory Service, Financial Intelligence Unit (FIU), National Tax Service, and Korea Customs Service, alongside representatives from the Korea Exchange. In its first year, the JIU indicted 41 individuals, arrested 18, and seized assets worth approximately $97.5 million, including Bitcoin, fiat currencies, luxury properties, and high-end supercars. The Ministry of Justice is currently reviewing an amendment to finalize the unit’s structure, with the official launch expected by March 2025.

• South Korea’s new Joint Investigation Unit (JIU) has been made a permanent crypto crime division, cracking down on fraud, manipulation, and hacking in the digital asset space.

• Since its formation in 2023, the JIU has arrested 18 suspects, indicted 41, and seized $97.5 million in assets, with its official structure set to be finalized by March 2025.

2)

Coinbase Expands to Argentina Amid Growing Crypto Adoption 

Coinbase has secured regulatory approval to launch crypto services in Argentina, marking a major step in its global expansion. The US-based exchange obtained a Virtual Asset Service Provider (VASP) registration from Argentina’s National Securities Commission (CNV), allowing it to operate within the country’s legal crypto framework. Argentina has shown strong demand for digital assets, with 5 million citizens already using cryptocurrency in their daily lives. Coinbase aims to support this growth, appointing Matias Alberti to lead operations. The expansion aligns with the increasing belief among Argentinians that crypto can provide financial independence, with 87% viewing it as a pathway to greater economic freedom and 76% seeing it as a solution to financial frustrations caused by inflation and high transaction costs.

• Coinbase received regulatory approval from Argentina’s National Securities Commission (CNV) to operate legally, strengthening its global expansion.

• The move aligns with Argentina's growing crypto adoption, where millions view digital assets as a tool for financial independence amid economic instability.

3)

X Partners with Visa to Introduce Direct Payment Solutions 

X (formerly Twitter) has partnered with Visa to integrate direct payment solutions within the platform, marking a significant step toward Elon Musk’s vision of making X an “everything app.” According to Reuters, Visa is the first partner for the X Money account, enabling users to fund their X wallets instantly, link debit cards, and conduct peer-to-peer transactions. The partnership also allows for instant transfers from X Money to bank accounts, positioning X as a competitor to digital payment giants like PayPal and Apple Pay. This move underscores the platform's growing influence in the financial sector and the expanding role of social media in digital payments.

• X’s partnership with Visa enables users to fund X Money wallets, link debit cards, and make peer-to-peer transactions, enhancing the platform’s payment capabilities.

• The deal accelerates X’s transformation into an “everything app,” increasing competition with PayPal and Apple Pay in the digital payments space.

4)

CZ Returns to Crypto with $16M Investment in Sign

After serving a four-month U.S. prison sentence for violating anti-money laundering laws, former Binance CEO Changpeng "CZ" Zhao has re-entered the crypto space by investing $16 million into Sign, a blockchain-based token airdrop platform. The investment, made through YZi Labs (formerly Binance Labs), highlights CZ’s continued commitment to blockchain innovation despite restrictions barring him from executive roles at Binance. Sign has experienced rapid growth, generating $15 million in revenue in 2024, and aims to expand its on-chain identity verification and token distribution services globally. Other investors in the funding round included Altos Ventures, HackVC, and Amber Ventures, reinforcing confidence in Sign’s potential.

• CZ Zhao has made a $16 million investment in Sign through YZi Labs, signaling his return to the crypto space after his U.S. prison sentence.

• Sign, a blockchain-based token airdrop platform, has seen rapid revenue growth and plans global expansion with a focus on secure token distribution and identity verification.

5)

France Investigates Binance for Money Laundering and Regulatory Violations 

French authorities have launched a judicial investigation into Binance over allegations of money laundering, tax fraud, and illegal financial activities across the European Union between 2019 and 2024. The Paris public prosecutor’s office cited links to drug trafficking and unauthorized operations in France, following complaints from users who suffered financial losses. Binance has denied the allegations, vowing to fight any charges. This probe follows a preliminary investigation in June 2023 and comes amid mounting global legal challenges, including a $4.3 billion U.S. settlement and multiple lawsuits in Australia and the U.S.

• French prosecutors are investigating Binance for alleged money laundering, tax fraud, and financial crimes linked to drug trafficking, with offenses spanning the EU from 2019 to 2024.

• Binance denies the allegations, but the probe adds to its ongoing legal troubles, including a $4.3 billion U.S. settlement and multiple lawsuits worldwide.

6)

Bitcoin ETFs Rebound with $18.44M Inflows Ahead of FOMC Decision 

Spot Bitcoin ETFs in the U.S. saw a return to net inflows on January 28, bringing in $18.44 million after a significant $457.48 million outflow the previous day. The inflows came entirely from BlackRock’s IBIT, which attracted $30.14 million, while ARK and 21Shares’ ARKB saw an $11.7 million outflow, with other Bitcoin ETFs experiencing zero flows. Bitcoin itself rebounded to around $102,000 after briefly dipping near $100,000, as investors awaited the Federal Open Market Committee (FOMC) meeting. Market analysts predict increased volatility based on Fed Chair Jerome Powell’s stance, with a 98.4% probability that interest rates will remain unchanged at 4.25%-4.50%.

• Spot Bitcoin ETFs saw $18.44 million in net inflows, reversing the prior day’s $457.48 million outflow, with BlackRock’s IBIT leading the gains.

• Bitcoin rebounded to $102,000 as the market awaited the FOMC decision, with analysts expecting volatility depending on Jerome Powell’s monetary policy stance.

7)

Ripple Eyes 2025 SEC Lawsuit Dismissals Amid Leadership Shift 

Ripple’s Chief Legal Officer, Stuart Alderoty, has expressed optimism that the SEC may withdraw its lawsuits against crypto firms, including Ripple, under the potential leadership of Paul Atkins. Speaking at XRP Community Day 2025, Alderoty suggested that a new, more crypto-friendly SEC administration could end enforcement actions that don’t involve fraud. Ripple has been entangled in legal battles since 2020, with a 2024 ruling holding the firm liable for $125 million. Meanwhile, Ripple’s XRP Ledger decentralized exchange saw $400 million in trading volume in January 2025, and efforts to launch an XRP-based ETF are gaining momentum, signaling growing institutional interest.

• Ripple’s CLO believes that under Paul Atkins’ potential SEC leadership, lawsuits against crypto firms could be dismissed, ending years of legal uncertainty.

• Ripple’s ecosystem continues to grow, with its DEX recording $400 million in January and XRP ETFs attracting institutional attention.

8)

South Korea to Launch Virtual Asset Crime Unit Amid Rising Crypto Fraud 

South Korea is set to officially establish a dedicated Virtual Asset Crime Unit within its prosecution service by early 2025 in response to the surge in crypto-related crimes. Initially formed as a task force in 2023, the Joint Investigation Unit (JIU) has already indicted 41 individuals, arrested 18, and seized assets worth approximately $97.5 million, including Bitcoin and luxury items. The Ministry of Justice is working to amend the Enforcement Decree of the Prosecutor’s Office Act to formalize the unit, providing it with additional resources and personnel from regulatory bodies such as the Financial Supervisory Service and the Financial Intelligence Unit. This initiative is part of South Korea’s broader efforts to regulate and combat fraudulent activities in the evolving cryptocurrency market.

• South Korea will upgrade its crypto crime task force into a full prosecution unit by early 2025, strengthening its efforts against rising fraud cases.

• The new unit, backed by regulatory agencies, will have expanded resources and authority, enhancing the government's ability to combat crypto-related crimes like price manipulation and fraud.

9)

Warren Presses Trump’s Commerce Pick Over Tether Ties 

U.S. Senator Elizabeth Warren has raised concerns over Howard Lutnick, Trump’s nominee for Commerce Secretary, due to his firm’s ties with Tether. In a January 27 letter, Warren highlighted Lutnick’s role as CEO of Cantor Fitzgerald, which holds a 5% stake in Tether and manages its assets. She questioned his ability to prioritize public interest over personal financial ties if confirmed. Warren demanded Lutnick disclose his financial involvement and any discussions with Trump officials regarding Tether by February 10, citing concerns over Tether’s use in illicit activities and its potential regulatory influence.

• Warren is scrutinizing Lutnick’s deep connections to Tether, citing concerns over conflicts of interest and its alleged use in illicit financial activities.

• She has requested detailed responses on his financial ties and regulatory discussions before his confirmation hearing, set for January 29.

10)

Nuvve Allocates 30% of Cash Reserves to Bitcoin, Expands Crypto Payments 

Nuvve, a Nasdaq-listed electric vehicle charging technology firm, has announced plans to allocate up to 30% of its excess cash reserves to Bitcoin as part of its treasury strategy. The company aims to diversify its holdings and integrate Bitcoin as a payment option for customers and suppliers, reducing transaction friction associated with traditional digital payment methods. CEO Gregory Poilasne emphasized that this move aligns with the growing trend of corporate Bitcoin adoption, with companies leveraging BTC to enhance financial stability and shareholder value. Following the announcement, Nuvve’s stock (NVVE) saw a brief uptick, closing at $2.81 with a 1.81% gain on Jan. 28, though it remains in a long-term decline.

• Nuvve will allocate up to 30% of its excess cash reserves to Bitcoin, citing diversification and expanded payment options as key benefits.

• The announcement led to a modest stock price increase, though the company’s shares remain in a broader downtrend.