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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-chinese-investors-duped-by-point-running-and-crypto-laundering-schemes-strong"><strong>Chinese investors duped by point running and crypto laundering schemes</strong></h2>
<p>A new type of cryptocurrency scam is rising in China, with locals losing money to a scheme known as point running, according to a warning posted by the <a href="https://www.thepaper.cn/newsDetail_forward_28694700" target="_blank" rel="nofollow">Public Security Bureau</a> on Sept. 10.</p>
<p>The term point running refers to the practice of moving crypto through various accounts. Often new to digital assets, victims are told that by transferring these cryptocurrencies, they are processing transactions and earning rewards or commissions.</p>
<figure class="wp-block-image alignright size-full is-resized">
 <img decoding="async" width="640" height="427" src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/09/Police-Shanghai-China.jpg" alt="Police officer standing on a bridge in China." class="wp-image-36000" style="width: 100%;height:auto" srcset="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/09/Police-Shanghai-China.jpg 640w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/09/Police-Shanghai-China-300x200.jpg 300w" sizes="(max-width: 640px) 100vw, 640px">
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  <em>Chinese authorities say that cryptocurrency is becoming increasingly popular among locals, making them more susceptible to scams. (Jefe King)</em>
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<p>Typically, this scam is marketed as a side hustle, where participants manually move crypto between accounts, with the false promise that these transactions generate profits. In reality, victims may unknowingly act as money mules, laundering funds for illicit operations.</p>
<p>More recent versions of the scam trick victims into depositing their cryptocurrency into platforms that claim to handle the point running automatically, making the process seem effortless. Victims are lured with small initial returns, encouraging them to invest more.</p>
<p>In a case highlighted by the Public Security Bureau, a local resident named Wang was introduced to a WeChat group by a friend. The offer was simple: invest in USDT (“U” coins) and watch the money grow. Wang installed an app and initially invested 8,000 yuan (about $1,125), then increased his investment after seeing minor returns. By August, he had invested over 300,000 yuan ($42,112). When Wang attempted to withdraw his funds later that month, he received a screenshot confirming the transaction, but the money never arrived and his “U” balance disappeared from the app.</p>
<p>Wang was paid 2,000 yuan ($280) through commission and ultimately lost 280,000 yuan ($39,305).</p>
<p>Authorities warn that these scams are becoming increasingly common as more locals <a href="https://cointelegraph.com/magazine/china-crypto-ban-investors/" target="_blank" rel="nofollow">become familiar with cryptocurrencies in China</a>, a nation that has banned several activities related to digital assets, including mining and trading.</p>
<p>Victims are often enticed by promises of high returns with little effort, but authorities say that these schemes not only cause financial loss but are frequently linked to money laundering, further complicating matters for those involved.</p>
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<h2 class="wp-block-heading" id="strong-hacked-indodax-launches-instagram-campaign-for-damage-control-strong"><strong>Hacked Indodax launches Instagram campaign for damage control</strong></h2>
<p>Indodax has taken a unique approach to ease customer concerns after losing $22 million in a hack on Sept. 11 by launching a giveaway campaign on its <a href="https://www.instagram.com/oscardarmawan/reel/C_xB2xTSGoW/" target="_blank" rel="nofollow">Instagram account</a>.</p>
<p>The campaign claims its giving out 3 million rupiah (almost $200) every hour to three winners chosen from among those who participate in a comment competition responding to <a href="https://www.instagram.com/p/C_zuKRYyf7H/" target="_blank" rel="nofollow">posts</a> by the exchange and its CEO, Oscar Darmawan, while the platform <a href="https://cointelegraph.com/news/indodax-crypto-exchange-hacked-22-million-loss" target="_blank" rel="nofollow">remains shut</a> for an “investigation.”</p>
<p>Its customers are now awaiting the results of this investigation into the alleged $22 million exploit, which targeted Bitcoin, TRX, POL and other ERC-20 tokens, as reported by security firm SlowMist.</p>
<figure class="wp-block-image aligncenter size-full">
 <img decoding="async" width="482" height="743" src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/09/SlowMist-investigation.jpg" alt="List of cryptocurrencies stolen from Indodax." class="wp-image-36001" srcset="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/09/SlowMist-investigation.jpg 482w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/09/SlowMist-investigation-195x300.jpg 195w" sizes="(max-width: 482px) 100vw, 482px">
 <figcaption class="wp-element-caption">
  <em>Crypto assets stolen from Indodax. (<a href="https://x.com/SlowMist_Team/status/1833707952353812782" target="_blank" rel="nofollow">SlowMist</a>)</em>
 </figcaption>
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<p>The Indodax hack comes almost two months after WazirX, a major exchange in neighboring India, suffered one of the years largest hacks, a $230 million exploit.</p>
<p>WazirX, run by Singapore-based Zettai Pte and its Indian subsidiary Zanmai India, requested a six-month reprieve from the Singapore High Court in <a href="https://cointelegraph.com/magazine/korean-scammer-face-coinswitch-warns-wazirx-asia-express/" target="_blank" rel="nofollow">late August</a>. This move would allow the exchange to reorganize its debts while temporarily shielding it from creditor claims.</p>
<p>Like WazirX, North Korean state hacking group Lazarus has been accused of conducting a cyber attack on Indodax.</p>
<p>During the annual Seoul Defense Dialogue held on Sept. 11, South Korean Prime Minister Han Duck-soo pinpointed North Koreas crypto theft for nuclear development as a global security threat.</p>
<p>In his speech, Han <a href="https://www.youtube.com/watch?v=u_2pnlifVNA" target="_blank" rel="nofollow">announced</a> that the South Korean government is in the process of establishing “core strategic technologies” to preempt such cyberattacks.</p>
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<h2 class="wp-block-heading" id="strong-human-trafficking-linked-to-southeast-asia-pig-butchering-scams-strong"><strong>Human trafficking linked to Southeast Asia pig butchering scams</strong></h2>
<p>Pig butchering scams in Southeast Asia are on the rise, according to crypto compliance and investigation firm AMLBot.</p>
<p>Among the investigations handled by the company in August, pig butchering scams, a type of romance scam where scammers slowly gain victims’ trust and manipulate their emotions to extract funds, accounted for $3.2 million in victim losses, up from $1 million in July.</p>
<figure class="wp-block-image aligncenter size-full">
 <img decoding="async" width="657" height="387" src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/09/AMLBot-investigation.jpg" alt="AMLBot investigation" class="wp-image-36002" srcset="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/09/AMLBot-investigation.jpg 657w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/09/AMLBot-investigation-300x177.jpg 300w" sizes="(max-width: 657px) 100vw, 657px">
 <figcaption class="wp-element-caption">
  <em>Crypto lost to scams in cases investigated by AMLBot. (AMLBot)</em>
 </figcaption>
</figure>
<p>As per our investigation and findings, the large-scale pig butchering syndicates are currently clustered around Cambodia, Myanmar and the Philippines. Out of these, the Cambodian syndicates are being operated by Chinese crime lords, AMLBot said in a statement shared with Magazine.</p>
<p>They add that a human trafficking angle is involved as children are kidnapped from India and Nepal and trafficked to compounds in Laos where theyre held in captivity and work to scam victims to send them crypto.</p>
<p>In past cases, criminal proceeds were usually laundered through a crypto exchange, but nowadays, theyre funneled through Huione Pay, AMLBot says.</p>
<p>Huione Pay is a foreign exchange business owned by <a href="https://cointelegraph.com/magazine/wazirx-exchange-hackers-fake-tether-scams-asia-express/" target="_blank" rel="nofollow">Huione Group</a>, which also operates the multibillion-dollar marketplace Huione Guarantee.</p>
<p>In July, crypto forensics firm <a href="https://www.elliptic.co/blog/cyber-scam-marketplace" target="_blank" rel="nofollow">Elliptic</a> reported that Huione Guarantee has evolved into an online marketplace that has become a rising preference among pig butchering scammers in Southeast Asia. Merchants in the platform have transacted over $11 billion.&nbsp;</p>
<p>AMLBot’s August investigation aligns with findings from forensics firm Chainalysis.</p>
<p>Chainalysis recently <a href="https://cointelegraph.com/news/crypto-scammers-pivot-pig-butchering-chainalysis" target="_blank" rel="nofollow">told</a> Cointelegraph that scammers are increasingly shifting from elaborate Ponzi schemes to quicker schemes, such as pig butchering, that target individuals on social media.</p>
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<h2 class="wp-block-heading" id="strong-philippine-science-high-school-to-adopt-blockchain-for-managing-student-records-strong"><strong>Philippine Science High School to adopt blockchain for managing student records</strong></h2>
<p>A top public high school in the Philippines will use blockchain technology to manage and verify its students academic records, local broadcaster ABS-CBN <a href="https://news.abs-cbn.com/news/2024/9/11/pisay-launches-student-records-platform-using-crypto-technology-1814" target="_blank" rel="nofollow">reported</a>.</p>
<p>The Philippine Science High School (Pisay) has highlighted how blockchain technology can streamline the process of accessing and managing student records, which traditionally required students and parents to visit schools in person. By implementing blockchain, the new system removes this bottleneck, allowing records to be accessed securely and conveniently online. This approach ensures faster, more efficient service while maintaining the integrity and authenticity of academic documents.</p>
<p>The initiative is being developed by the Department of Science and Technology and aims to showcase how blockchain can be used beyond cryptocurrencies, unlocking its potential in public-sector applications.</p>
<p>Pisays digital certificate is set for testing in late 2024 with a broader rollout planned by 2025.</p>
<p>Several academic institutions have explored blockchain-based certificates to enhance the security and authenticity of academic records. One of the earliest examples dates back to 2017 when the Massachusetts Institute of Technology launched its Blockcerts initiative. This initiative allows graduates to receive diplomas in digital format, secured by blockchain technology.</p>
<p>Also in 2017, Australias University of Melbourne <a href="https://www.unimelb.edu.au/newsroom/news/2017/april/melbourne-university-to-pilot-a-distributed-database-for-micro-credentials" target="_blank" rel="nofollow">started</a> issuing blockchain-based micro-credentials for employers to verify student achievements.</p>
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China’s ‘point running’ crypto scams, pig butchers kidnap kids: Asia Express

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