India warns AI-powered hackers targeting crypto exchanges at ‘machine speed’
India’s national cybersecurity agency warned that an AI-assisted threat actor has escalated its attacks on cryptocurrency exchanges and other financial businesses, stealing wallet keys and siphoning funds.
The Indian Computer Emergency Response Team (CERT-In) on Wednesday designated the threat actor as “CRAFTY FALCON” and explicitly identified crypto exchanges among affected businesses.
“The threat is active and ongoing. CSIRT-Fin continues to receive reports of successful attacks, including from NBFCs and fintech entities that had already received the earlier restricted advisories and had undertaken remediation,” said CERT-In.
The warning adds to evidence of hackers using AI tools against financial institutions. In October, cybersecurity firm CrowdStrike reported that an unidentified attacker used ARTEX, an AI penetration-testing tool also named in CERT-In’s advisory, alongside Claude Code and other AI models to breach South Korean financial firms and steal data.
SOUTH KOREA
South Korea urges exchanges to boost cold storage after Binance hack
South Korea’s Financial Services Commission has urged domestic crypto exchanges to increase the proportion of assets held in cold wallets after the $6.3 billion attack on Binance.
The FSC said it held an emergency meeting with other regulators, cybersecurity agencies and crypto service providers to review security measures.
It reviewed exchanges’ IT access controls, wallet withdrawal approval and signing procedures, and administrator privileges. It also urged providers to increase the proportion of assets held in offline cold wallets. But South Korean law already requires exchanges to hold at least 80% of users’ crypto assets in cold storage, with Upbit keeping 99.17% assets in cold wallets, followed by Bithumb at 94.76% and Coinone at 85%.
Bank of Korea probes financial firms’ exposure to crypto risks
The Bank of Korea is surveying 31 financial institutions on how a major exchange shutdown, prolonged crypto downturn or losses at another firm could affect their operations.
One scenario asks how financial firms would be affected if South Korea’s largest crypto exchange by market share temporarily suspended operations following a major hack or similar incident.
Other questions address a steep fall in cryptocurrency prices followed by a sustained trading slump, and the potential fallout if another financial institution suffered heavy losses from a crypto-related incident.
‘Absurd rhetoric’: North Korea denies role in $6.3B Binance hack
Despite clear evidence of years of North Korea-linked hacking groups stealing billions from crypto exchanges, Pyongyang claims to have had no involvement in the $6.3 billion Binance hack and floated the idea it was actually the Americans.
“The FBI is trying to brand the DPRK as a ‘cyber criminal state’, claiming that it obtained information that a hacking organization ‘supported’ by the DPRK was involved in the incident,” said Kim Yo Jong said. “But the US assertion is an absurd rhetoric and nothing new.”
South Korea targets 2029 for the next time it will delay its crypto tax
South Korea’s government has backed postponing tax on cryptocurrency gains by another two years to 2029. Judging on the troubled history of the tax, it would not be surprising if it is delayed again at that point.
HONG KONG
Crypto.com to withdraw Hong Kong consumer app citing regulatory changes
Crypto.com will discontinue its consumer app services in Hong Kong on Feb. 1, 2027, while continuing to pursue regulatory approval for its institutional exchange.
A Crypto.com spokesperson told Cointelegraph that the company would discontinue its consumer app services in Hong Kong. The spokesperson said all affected customers had received advance notice and would receive instructions on closing their accounts and support to withdraw their funds.
Nearly three years after the local entity submitted an application for a license and the status remains “deemed-to-be-licensed” — which a transitional status rather than full regulatory approval.
Animoca Brands clears final hurdle for Abu Dhabi fund management
The Hong Kong headquartered Animoca Brands has secured approval to manage investment funds for non-retail clients in Abu Dhabi.
The authorization, granted to subsidiary Animoca Asset Management (AD) Limited by Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA), allows it to oversee funds that pool money from professional investors rather than the general public.
It expanding the asset management business of a company that began in mobile games before moving into blockchain gaming, rode the Metaverse wave and was a big player in venture investing.
Hong Kong takes tokenized settlement to 24/7, plans stablecoin trials
Hong Kong has expanded its Project Ensemble pilot to allow round-the-clock settlement of tokenized transactions, as the city’s…
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