50M NEO tokens could be ‘given back’, 53 DeFi projects infiltrated: Asia Express
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Everything that happened in crypto news in Asia over the past seven days: Asia Express.
In this edition
- Neo co-founder floats $461 million governance reset
- Over 50 projects flagged in DPRK infiltration sweep
- Pakistan lifts crypto banking ban under strict regulatory limits
- Ledger device that drains funds sold in Chinese marketplace
- South Korea trials tokenized deposits for controlled public spending
- Naver moves to fold Upbit operator into fintech arm ahead of IPO
- Tokyo funds yen stablecoin use cases to boost global finance push
- SBI Remit taps Ripple tech to expand remittances for foreign workers
Neo co-founder floats $461 million governance reset
Neo co-founder Da Hongfei has proposed stripping founders of control, returning nearly 50 million tokens to the community and installing formal oversight in a bid to overhaul a $461 million treasury.
In March, the smart contract blockchain disclosed its finances for the first time since 2019, revealing assets held across the Neo Foundation and Neo Global Development.
The proposal would move the foundations legal base to the Cayman Islands, install a five-member board and an independent supervisor, and bar both Hongfei and co-founder Erik Zhang from holding governance roles for two years. It also includes returning 49.5 million NEO tokens to the community.
Founded in 2014, Neo rose to prominence during the 2017 bull market, when it was widely dubbed Chinas Ethereum. The two co-founders publicly clashed on X on New Years Eve, accusing each other of mismanaging the project’s treasury.
Over 50 projects flagged in DPRK infiltration sweep
An Ethereum Foundation-funded program alerted more than 50 crypto projects to potential North Korean infiltration.
The Ketman Project, one of its recipients, identified 100 suspected DPRK IT workers operating inside Web3 firms under false identities.
The group flagged patterns such as reused GitHub profiles, mismatched language settings and identity inconsistencies used to evade detection.
North Korean IT workers have allegedly tricked crypto firms for years to earn salaries that can be funneled back to the regime. Recently, suspected operatives escalated their tactics by physically approaching Drift contributors at a conference, culminating in a $285 million exploit.
Pakistan lifts crypto banking ban under strict regulatory limits
Pakistan has ended an eight-year ban by reopening its banking system to licensed crypto firms.
Banks will be allowed to open accounts for licensed virtual asset service providers and their customers under a new framework set by the central bank.
However, banks will not be allowed to trade or hold crypto, with their role limited to providing services such as account access and payments to licensed firms.
The change follows the passage of the Virtual Assets Act 2026 in March, which established a licensing regime for crypto firms and created a formal regulatory framework for the sector.
Ledger device that drains funds sold in Chinese marketplace
A cybersecurity researcher has identified a fake Ledger hardware wallet designed to capture seed phrases and drain user funds.
The researcher said they purchased what appeared to be a Ledger Nano S Plus from a Chinese marketplace for personal use.
When the device was connected to the official Ledger Live app, it failed the built-in verification check. The researcher already had the app installed, but first-time users would likely have been prompted to download a malicious version instead.
Ledger told Cointelegraph that customers should only download official apps on desktop and mobile devices.
Earlier in April, Apple removed a fake Ledger app from its App Store that led to a combined $9.5 million in losses for victims who downloaded it.
South Korea trials tokenized deposits for controlled public spending
South Korea will pilot tokenized deposits for government spending in late 2026 under a regulatory sandbox testing blockchain-based payments.
The pilot, led by the Ministry of Economy and Finance, will launch in Sejong City and apply predefined conditions such as time limits and permitted spending categories.
Authorities will assess whether the model improves oversight of public funds.
The Philippines is also weighing blockchain to track government spending through the Citizen Access and Disclosure of Expenditures for National Accountability Act, or CADENA. The bill has cleared the Senate and is now pending in the House of Representatives.
Naver moves to fold Upbit operator into fintech arm ahead of IPO
South Koreas Naver and Dunamu have outlined a path toward a potential Naver Financial IPO in a corrected filing tied to their share swap deal, including plans to form a listing committee within a year.
The plan hinges on a share swap that would bring Dunamu, operator of the countrys largest crypto exchange Upbit, under Naver Financial.
The companies also agreed to use best efforts to pursue a listing within five years of the deals closing, with a possible two-year extension.
Naver is one of South Koreas largest internet firms. The plan builds on a $10.3 billion all-stock deal first reported in 2025, which would bring Dunamu under its fintech arm.
Tokyo funds yen stablecoin use cases to boost global finance push
Tokyo is offering subsidies of up to 40 million yen (about $250,000) to companies building yen-denominated stablecoin use cases.
The program will cover up to two-thirds of eligible costs, including infrastructure, compliance and system development expenses.
The initiative is part of Tokyos broader push to position itself as a global financial hub, backing stablecoin development as a faster and lower-cost payment rail with potential use cases in areas such as cross-border transfers.
Applications are open until June 30, according to the Tokyo Metropolitan Government.
SBI Remit taps Ripple tech to expand remittances for foreign workers
SBI Remit has partnered with Tottori Bank to expand low-cost, app-based remittance services for foreign workers in Japan.
The service allows customers to send money abroad through SBI Remits platform via the regional bank via Ripples technology to enable faster and lower-cost cross-border transfers.
The partnership targets growing demand from foreign workers, who are increasingly relying on digital remittance services over traditional bank transfers.
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