Suspicious arrest of crypto scam reporter, Japan’s pro-crypto PM: Asia Express

Crypto scam and human trafficking investigator in Cambodia faces charges

Renowned Cambodian journalist Mech Dara has been arrested and charged with “incitement to cause public disorder” after sharing photos in a now-deleted Facebook post that reportedly depicted the destruction of stairs leading to a religious site by a quarry operation.

But human rights organizations suspect he may have been targeted over his investigative reporting on criminal crypto syndicates in Cambodia, where victims are allegedly kidnapped, detained, and coerced into working as crypto scammers targeting individuals worldwide.

These compounds reportedly function as hubs for “pig butchering” scams, where perpetrators gradually build trust with their victims, often manipulating romantic emotions in a process akin to “fattening” their targets before persuading them to invest in fraudulent cryptocurrency schemes.

Cambodia, along with its Southeast Asian neighbors, has emerged as the epicenter for these pig butchering operations. While estimates of the global damage vary, a study by John Griffin, a finance professor at The University of Texas, places the losses from January 2020 to February 2024 at over $75 billion.

Dara’s in-depth coverage of human trafficking and the pig butchering scams in Cambodia earned him the United States Department of Trafficking in Persons Report Hero award in 2023. His investigative work notably exposed the links between these criminal rings and Cambodian senator Ly Yong Phat.

In September, Phat was sanctioned by the U.S. Department of Treasury for his alleged involvement in human trafficking and forced labor tied to crypto scams, a move that the Cambodian government condemned.

Dara’s arrest has ignited widespread outcries from human rights organizations and press freedom advocates, who see it as a disturbing attack on journalism and a major setback for accountability in exposing criminal syndicates.

Amnesty International states that “incitement has become the default charge used against human rights defenders and activists in Cambodia.” The penalties range up to two years in prison.

“Falsifying information and posting of inciting messages that distort the truth, slander, fabricate false information that is done with malicious intent to ignite anger among the public, with confusions and misconceptions are not considered as freedom of expression, and if the person involved is indeed a journalist, the act of distorting the facts and fabricating false information is not considered as freedom of the press nor freedom of the publication,” Cambodia’s Ministry of Information said in a statement.

The ministry claims that Dara’s journalist credentials expired at the end of 2022 and hasn’t been renewed, adding that the “state of press freedom in Cambodia is very good.”

Cambodia was ranked 151 out of 180 countries in the Reporters Without Borders’ 2024 Press Freedom Index. 

South Korea and U.S. intensify battle against North Korean crypto theft

South Korea and the US are intensifying their joint efforts to counter North Korea’s growing reliance on cryptocurrency theft that reportedly funds its weapons program, South Korea’s Office of the President announced on Oct. 3.

During the Counter Ransomware Initiative meeting in Washington, D.C., Wang Yoon-jong, South Korea’s third deputy security advisor, held bilateral discussions with US Deputy National Security Advisor for Cyber Anne Neuberger.

A United Nations report from earlier this year revealed that between 2017 and 2023, North Korean hackers allegedly stole $3 billion in cryptocurrency through a series of cyberattacks targeting crypto companies.

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

In August, on-chain sleuth ZachXBT reported that at least 21 North Korean developers, using fake identities, had infiltrated 25 cryptocurrency companies, collectively earning up to $500,000 per month in salary. 

New Japanese PM plans blockchain boost for Japan’s traditional sectors

Japan’s newly appointed Prime Minister, Shigeru Ishiba, assumed office on Oct. 1, and his policy strategy, along with his cabinet selections, suggests he will likely follow in the footsteps of his predecessor, Fumio Kishida, in supporting blockchain solutions to address Japan’s socio-economic challenges.

Ishiba’s policy framework outlines plans to leverage blockchain technology and non-fungible tokens (NFTs) to modernize traditional local industries, such as food and tourism, enhancing the digital value of these sectors.

“As an older conservative Japanese politician, I doubt Ishiba has much in the way of an individual perspective on crypto,” Will Fee, a researcher at Japanese consulting firm Yuri Group tells Magazine.

“This seems more a case of following the advice of party bureaucrats than individual conviction.”

However, Fee says that this is positive news for Japan’s crypto landscape, as the key figure driving Web3 adoption remains Masaaki Taira, the ruling Liberal Democratic Party’s former tech chief, who has just been appointed digital minister in Ishiba’s cabinet.

“He’ll likely continue his Web3 adoption drive from there,” Fee says.

Malaysia sets stage for tokenized bonds with sovereign wealth fund partnership

The Securities Commission Malaysia (SC) unveiled a series of new initiatives at its annual fintech conference on Oct. 1, aimed at driving innovation in the nation’s capital market. 

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

The SC revealed a collaboration with Khazanah Nasional, Malaysia’s sovereign wealth fund, to explore the issuance of tokenized bonds, utilizing smart contracts and custodial arrangements to streamline the process.

Securities tokens are digital assets but differ from cryptocurrencies, as they represent traditional financial securities like stocks.

“Big Three” management firm Boston Consulting Group in 2022 published an optimistic report on security tokens, predicting it to become a $16 trillion business opportunity by 2030. However, fellow Big Three firm McKinsey & Company disagrees and estimates that the total tokenized assets market cap will reach $2 trillion by then.

Malaysia’s SC is expected to issue guidance early next year to help intermediaries manage risks associated with securities tokenization.

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Yohan Yun

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