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<p><em>Our weekly roundup of news from Asia curates the industrys most important developments.</em></p>
<h2 class="wp-block-heading" id="strong-south-korean-metaverses-are-closing-amid-scandals-and-disinterest-strong"><strong>South Korean metaverses are closing amid scandals and disinterest</strong></h2>
<p>South Koreas tech-savvy population, blazing-fast internet, and deep-rooted gaming culture made it the ideal testbed for metaverse applications. Despite these advantages, some of the country’s top metaverse platforms are now closing their doors.</p>
<p>The latest casualty is 2nd Block, a metaverse built by Dunamu, the operator of <a href="https://cointelegraph.com/magazine/wasirx-hack-metaverse-hikikomori-binance-philippines-asia-express/" target="_blank" rel="nofollow">South Koreas largest cryptocurrency exchange Upbit</a>.&nbsp;</p>
<p>Dunamu <a href="https://secondblock.zendesk.com/hc/ko/articles/36113006504857-%EC%84%9C%EB%B9%84%EC%8A%A4-%EC%A2%85%EB%A3%8C-%EC%95%88%EB%82%B4" target="_blank" rel="nofollow">announced</a> that it will be shutting down its metaverse services on Sept. 9 due to weak engagement since the pandemic began to wane.</p>
<figure class="wp-block-image alignleft size-large is-resized">
 <img decoding="async" width="553" height="1024" src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Zepeto-553x1024.jpg" alt="Low users, sex predators kill Korean metaverses, 3AC sues Terra: Asia Express" class="wp-image-35224" style="width: 100%;height:auto" srcset="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Zepeto-553x1024.jpg 553w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Zepeto-162x300.jpg 162w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Zepeto-770x1427.jpg 770w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Zepeto-829x1536.jpg 829w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Zepeto-1105x2048.jpg 1105w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Zepeto.jpg 1170w" sizes="(max-width: 553px) 100vw, 553px">
 <figcaption class="wp-element-caption">
  <em>Naver’s Zepeto is a metaverse popular among young adults and minors. (Zepeto)</em>
 </figcaption>
</figure>
<p>This comes on the heels of a similar move by Seouls metropolitan government. Last month, the city said its metaverse project, which cost $4.5 million to build, will be locking its virtual doors on Oct. 16. The digital version of Seoul, designed to offer residents and tourists a digital space to interact and explore, lasted less than two years.</p>
<p>Even the surviving metaverses are battling their issues.</p>
<p>Zepeto, a metaverse developed by South Korean internet giant Naver, has managed to thrive by shifting its focus to the global market. As of last year, it had 20 million monthly visitors from overseas and just 1.2 million local users, according to data analytics firm <a href="https://sensortower.com/ko/blog/ZEPETO-Avatar-exceeded-200M-downloads-worldwide" target="_blank" rel="nofollow">Sensor Tower</a>.</p>
<p>At home, the platform has come under fire after several parents <a href="https://www.mediatoday.co.kr/news/articleView.html?idxno=305657" target="_blank" rel="nofollow">reported</a> that their childrens avatars were sexually harassed by other users.&nbsp;</p>
<p>In <a href="https://www.hankyung.com/article/2022041476957" target="_blank" rel="nofollow">severe cases</a>, predators reportedly coerced minors into sharing explicit images in exchange for in-game items.</p>
<p>In response to these incidents, South Korean lawmakers proposed amendments to existing laws to prison times and fines on virtual sex offenders.</p>
<p>However, the draft bill ultimately failed to <a href="https://likms.assembly.go.kr/bill/billDetail.do?billId=PRC_H2D2W0S7F2C2O0U9N2N4A2B3J4S0L8" target="_blank" rel="nofollow">pass the National Assembly</a>, leaving the issue unresolved. </p>
<p>Most complaints are left unsolved due to difficulties in tracking predators in digital spaces that span across international borders.</p>
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<h2 class="wp-block-heading" id="strong-3ac-liquidators-sue-terra-for-1-3-billion-over-terra-collapse-strong"><strong>3AC liquidators sue Terra for $1.3 Billion over Terra collapse</strong></h2>
<p>Liquidators of the defunct <a href="https://cointelegraph.com/news/3-ac-liquidators-file-1-3-b-claim-against-terraform-labs" target="_blank" rel="nofollow">Singapore crypto hedge fund Three Arrows Capital (3AC)</a> have filed a $1.3 billion lawsuit against Terraform Labs.</p>
<p>In their court filing, 3AC liquidators Russell Crumpler and Christopher Farmer of Teneo Holding allege that Terraform Labs misled 3AC about the stability of its algorithmic stablecoin TerraUSD (UST) and its sister token LUNA, prompting the hedge fund to make substantial bets on the assets.</p>
<p>The liquidators are seeking damages not only for the direct purchases of UST and LUNA but also for the subsequent losses to 3ACs crypto investments caused by Terras collapse.</p>
<p>The turmoil for 3AC began in May 2022, when Terras UST lost its peg to the greenback, leading to a $40 billion loss for the Terra ecosystem. </p>
<p>Despite alleged assurances from Terra’s co-founder Kwon Do-Hyung (better known as Do Kwon), the stablecoin’s failure triggered a chain reaction in the crypto market, ultimately leading 3AC to file for bankruptcy in July 2022.</p>
<p>The hedge fund, which once managed up to $18 billion in assets, argued that the Terra collapse caused irreversible financial damage.</p>
<p>Terraform Labs filed for bankruptcy in January. In June, the company <a href="https://cointelegraph.com/news/terraform-fine-resolve-sec-civil-lawsuit" target="_blank" rel="nofollow">agreed to a $4.47 billion settlement</a> to resolve an SEC civil suit.</p>
<p>Meanwhile, Kwon was found guilty of defrauding investors by a US jury in April and remains in Montenegro, awaiting extradition decisions. Last week, his extradition to South Korea was <a href="https://cointelegraph.com/magazine/china-crypto-tapper-cults-scam-wazirx-asia-express/" target="_blank" rel="nofollow">delayed by the Montenegrin Supreme Court</a>.</p>
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<h2 class="wp-block-heading" id="strong-malaysian-police-manhunt-after-crypto-kidnappings-strong"><strong>Malaysian Police manhunt after crypto kidnappings</strong></h2>
<p>Malaysian police are searching for four individuals suspected of involvement in the kidnapping of a Chinese man and a Malaysian woman. The victims were abducted on July 11 and released four days later, on July 15, after a ransom was paid in cryptocurrency, according to state-backed news agency <a href="https://www.bernama.com/tv/news.php?id=2328296" target="_blank" rel="nofollow">Bernama</a>.</p>
<figure class="wp-block-image alignright size-full">
 <img decoding="async" width="640" height="268" src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Hand-tied-to-chair.jpg" alt="Close up image of a man's wrist tied with ropes to a chair's arm." class="wp-image-35225" srcset="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Hand-tied-to-chair.jpg 640w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Hand-tied-to-chair-300x126.jpg 300w" sizes="(max-width: 640px) 100vw, 640px">
 <figcaption class="wp-element-caption">
  <em>Kidnapped victims were freed after a family member paid the crypto ransom. Jose P. Ortiz/Unsplash</em>
 </figcaption>
</figure>
<p>The four wanted suspects are part of a group of 18 implicated in the crime. Earlier in August, police killed four suspects in a shootout, and 10 others have been arrested. Among those involved was a man who worked as the male victims chauffeur.</p>
<p>The ransom, amounting to $1.2 million in cryptocurrency, was reportedly divided among the suspects following the release of the victims.</p>
<p>On Aug. 15, six of the arrested suspects <a href="https://www.freemalaysiatoday.com/category/nation/2024/08/15/6-plead-not-guilty-to-kidnapping-chinese-national-for-us1mil-ransom/" target="_blank" rel="nofollow">pleaded not guilty</a> to charges under Malaysias Kidnapping Act. If convicted, they could face up to 40 years in prison and caning, a form of corporal punishment involving whipping.</p>
<p>In the course of the investigation, police confiscated 1.65 million Malaysian ringgit ($372,500) in cash and other assets, including vehicles worth approximately $700,000.</p>
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<h2 class="wp-block-heading" id="strong-sbis-everlasting-love-for-ripple-strong"><strong>SBIs everlasting love for Ripple</strong></h2>
<p>SBI Holdings, the parent company of Japans largest online brokerage SBI Securities, has <a href="https://www.sbigroup.co.jp/news/pr/2024/0813_14845.html" target="_blank" rel="nofollow">announced a strategic partnership</a> with Ripple Labs aimed at expanding the use of <a href="https://cointelegraph.com/magazine/lot-going-on-with-nfts-rd-24-hours-of-art-nft-creator/" target="_blank" rel="nofollow">non-fungible tokens (NFTs)</a> on the XRP Ledger (XRPL).</p>
<figure class="wp-block-image alignright size-large is-resized">
 <img decoding="async" width="1024" height="678" src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Physical-XRP-1024x678.jpg" alt="An image of a physical coin model representing the XRP cryptocurrency." class="wp-image-35226" style="width: 100%;height:auto" srcset="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Physical-XRP-1024x678.jpg 1024w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Physical-XRP-300x199.jpg 300w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Physical-XRP-770x510.jpg 770w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Physical-XRP.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
  <em>Ripple expands XRPL presence through SBI partnerships. (Miloslav Hamk/Pixabay)</em>
 </figcaption>
</figure>
<p>The partnership will see subsidiary SBI Digital Community educating its Bto3 community members on how to buy and trade digital assets on xrp.cafe, an NFT marketplace on XRPL.</p>
<p>SBIs relationship with Ripple and XRPL is not new.&nbsp;</p>
<p>The companys remittance arm, SBI Remit, has been using XRP for <a href="https://www.remit.co.jp/en/kaigaisoukin/information/release20230906/" target="_blank" rel="nofollow">cross-border transactions since 2017</a>, making it one of the earliest adopters of the Ripple-backed technology.</p>
<p>In April, SBI became the <a href="https://cointelegraph.com/news/sbi-group-xrpl-japan-ripple" target="_blank" rel="nofollow">first Japanese corporation</a> to use XRPL supply chain services.</p>
<p>Over in the US, Ripple’s years-long legal battle against the Securities and Exchange Commission is winding up.</p>
<p><a href="https://cointelegraph.com/news/sec-ripple-labs-liable-civil-penalty" target="_blank" rel="nofollow">In an Aug. 7 filing</a>, Ripple was ordered by US Judge Analisa Torres to pay a $125 million civil penalty and permanently enjoined the company from violating securities laws. The penalty is much, much lower than the $2 billion sought by the SEC.</p>
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Low users, sex predators kill Korean metaverses, 3AC sues Terra: Asia Express

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