The South Korean government has called for a full overhaul of protections against hackers after the cyber defenses of seven of the country’s major financial institutions were breached last week, resulting in the leak of private data belonging to thousands of customers.
The breaches extend beyond the financial sector. On Wednesday, two of the country’s largest churches and Korea Electric Power Corp. confirmed that their online systems had been accessed illegally, although it remains unclear whether the same perpetrator was behind all of the attacks.
On Tuesday, Prime Minister Han Seong-sook urged authorities to act quickly to stop any further leaks.
Two cryptocurrency firms connected to World Liberty Financial, a company backed by the Trump family, are involved in a $141 million legal dispute that has drawn attention to the controversial “over-the-counter” deals common in the digital asset market.
DWF Maas, based in the British Virgin Islands, and its Panama-based sister company, Falcon Digital, have filed a lawsuit against BitGo, alleging that it breached contracts by selling digital tokens before the agreed lock-up periods had expired, which caused the tokens’ prices to drop. DWF Maas and Falcon belong to DWF Labs, a market maker and investor headquartered in Dubai.
In the lawsuit, filed in London’s High Court, DWF and Falcon claim they agreed to sell Falcon Finance tokens to BitGo at a discount, subject to a three-month lock-up followed by additional vesting lock-ups. According to the lawsuit, DWF and BitGo also signed an agreement with the same lock-up structure for ESPORTS tokens, which are used in electronic sports and gaming.
Private over-the-counter token sale agreements are widespread in the crypto industry, allowing token founders to raise funds without flooding the market with assets and pushing down the coin’s price. In exchange, traders receive tokens at a discount that they can sell once the lock-ups end.
These arrangements, however, depend on trust between the parties, and their lack of transparency makes them controversial, particularly among retail investors, who may be exposed to sell-offs once token vesting periods end.