17/05/2025

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Apec expresses concern over challenges to global trade

“As our nascent industry grows rapidly, it draws the eye of bad actors, who are becoming increasingly sophisticated in the scope of their attacks,“ said Nick Jones, founder of crypto firm Zumo. The firm now also faces a lawsuit, filed in the Southern District of New York, alleging the world’s largest crypto exchange failed to secure and safeguard personally identifiable information of millions of former and current customers, the filing showed. Coinbase has refused to pay a ransom demand of US$20 million from the attackers and is working with law enforcement agencies. It has instead established a US$20 million reward for information on the hackers. The company is also opening a new support hub in the US and taking other measures to prevent such cyberattacks, it said. – Reuters Nvidia plans China research centre as export curbs bite SHANGHAI: US chipmaker Nvidia is planning to build a research and development centre in Shanghai, the Financial Times reported Friday, as tighter export restrictions imposed by Washington threaten sales in the key Chinese market. The tougher US controls in recent years have prevented the California-based firm from selling certain AI chips – widely regarded as the most advanced in the world – to China. As a result, it is now facing tougher competition from local players in the crucial market, including Huawei. Nvidia boss Jensen Huang discussed plans to set up a research and development centre in Shanghai with its mayor during a visit to the city last month, the FT reported, citing two unnamed people familiar with the matter. The site would “research the specific demands of Chinese customers and the complex technical requirements needed to satisfy Washington’s curbs”, said the report. It added that“actual core design and production” would remain outside of China in order to comply with intellectual property transferral regulations. Nvidia and Shanghai authorities did not immediately respond to AFP’s request for comment. During a visit to Beijing in April, Huang met with Vice-Premier He Lifeng, telling him that he “looked favourably upon the potential of the Chinese economy”, according to state news agency Xinhua. Huang said he was “willing to continue to plough deeply into the Chinese market and play a positive role in promoting US-China trade cooperation”, Xinhua said. The tightened US export curbs come as China’s economy wavers, with domestic consumers reluctant to spend and a prolonged property sector crisis weighing on growth.e. – AFP

JEJU: The Asia-Pacific Economic Cooperation (Apec) group said yesterday that it was “concerned” over the challenges to global trade, as ministers from Apec countries met in South Korea in the shadow of growing woes from US tariffs. Trade ministers from the top economies that make up Apec are meeting on South Korea’s Jeju Island amid concerns for the global trading system since US President Donald Trump unveiled bombshell levies on most partners. The US is a key Apec member and was represented by Trade Representative Jamieson Greer, who held a series of bilateral meetings with nations eager to soften the blow of Washington’s tariffs. “We are concerned with the fundamental challenges faced by the global trading system,” trade ministers from the 21-member group said in a joint statement. They urged greater cooperation, saying they “remain committed” to Apec as a means of “bringing us together to address the economic challenges facing our region”. South Korea’s Minister for Trade Cheong In-Kyo said the joint statement was hard-won, with “significant differences” in positions clear early on in the talks. But at the last minute, the countries “dramatically” reached an agreement, he said, with the Apec emphasising the importance of global trading mechanisms such as tensions, as US tariffs loom large over South Korea-hosted talks o Economic ministers call for unity amid rising worldwide

South Korean Trade Minister Cheong In-kyo (seen on screens) delivers a speech during the opening ceremony of the Apec 2025 Trade Ministers Meeting at the Jeju International Convention Center in Jeju on May 15. – AFPPIX

Separately, the US Securities and Exchange Commission had begun scrutinizing whether Coinbase had misstated its user figures, two sources familiar with the matter told Reuters. The agency had also been interested in whether any inaccurate user data could indicate the company had inadequate know-your-customer compliance that is required of firms registered with the SEC, the sources said. A Coinbase spokesman denied the SEC was probing the company’s compliance with know-your customer and Bank Secrecy Act rules. Another source familiar with the matter said that the SEC did not directly ask questions about such compliance and that it would not be a relevant topic since the SEC dropped the World Trade Organisation, as well as sustainable supply chains. This “sends a highly positive signal to global markets”, he said, adding that “Apec members can work together to navigate the current highly uncertain global trade environment effectively”. Cheong said there had been no discussion of “joint responses” to US tariffs, saying it was not possible as “each country faces significantly different circumstances”. South Korea recorded a US$66 billion (RM283 billion) trade surplus with the US last year – behind only Vietnam, Taiwan, and Japan – making it a key target of Trump’s trade tirade.

The inquiry into Coinbase’s “verified user” metric had continued even after the SEC abandoned its other lawsuit, the source said. The New York Times first reported the investigation into user data from past disclosures. Coinbase shares extended losses after the report and were last down 6.5%. “This is a hold-over investigation from the prior administration about a metric we stopped reporting two and a half years ago, which was fully disclosed to the public,“ Coinbase’s chief legal officer Paul Grewal, said. “While we strongly believe this investigation should not continue, we remain committed to working with the SEC to bring this matter to a close.” Highly dependent on exports, the country has been hit hard by the 25% tariffs on automobiles imposed by Trump in early April. The auto industry accounts for 27% of South Korea’s exports to the US, which takes in nearly half of the country’s car exports. Trump announced additional “reciprocal” tariffs of up to 25% on South Korean exports last month, but later suspended them until early July. Seoul aims to leverage the talks with commitments to purchase more US liquefied natural gas and offer support in shipbuilding, a sector in which South Korea is a leader, after China.

Earlier yesterday, Greer met Chung Ki-sun, the vice-chairman of HD Hyundai, which owns South Korea’s country’s largest shipbuilding company. HD Hyundai said in a statement that discussions covered cooperation with US shipmaker Huntington Ingalls Industries. Greer is also set to meet the CEO of South Korean shipbuilder Hanwha Ocean, which provides maintenance, repair and overhaul services for US Navy vessels. Shares of Hanwha Ocean rose nearly 3% yesterday morning, while HD Hyundai Heavy Industries gained as much as 3.6%. – AFP

Coinbase warns of up to US$400m hit from cyberattack NEW YORK: Coinbase forecast a hit of US$180 million (RM771 million) to US$400 million from a cyberattack that breached account data of a “small subset” of its customers, the crypto exchange said in a regulatory filing on Thursday. collect information. The company had fired those involved, it said. a separate case against Coinbase alleging the firm failed to register with the SEC. The SEC declined to comment. The latest developments come days before the company is set to join the benchmark S&P 500 index, casting a shadow over what was expected to be a landmark moment for the crypto industry.

Security remains a challenge for the crypto industry despite its growing mainstream acceptance. In February, Bybit disclosed a hack in which around US$1.5 billion of digital tokens were stolen — widely dubbed the biggest crypto heist of all time. “The cyberattack may push the industry to adopt stricter employee vetting and introduce some reputational risks,“ said Bo Pei, analyst at US Tiger Securities. Funds stolen by hacking crypto platforms totaled US$2.2 billion in 2024, according to a report from Chainalysis.

The company received an email from an unknown threat actor on May 11, claiming to have information about certain customer accounts as well as internal documents. While some data — including names, addresses and emails — was stolen, the hackers did not get access to login credentials or passwords, Coinbase said. It would, however, reimburse customers who were tricked into sending funds to the attackers. Hackers had paid multiple contractors and employees working in support roles outside the US to