Dear reader,
The intricate situation involving Shinhan Securities’s investment in counterfeit WeWork shares raises significant concerns about transparency and accountability in the global financial sector. What initially appeared to be a simple transaction turned into a complex web of fraud accusations, shadowy offshore entities, and missing individuals.
Central to this case is the breakdown of due diligence, not just on the part of Shinhan but by all parties involved. The involvement of British Virgin Islands shell companies, nominee directors, and a secondary escrow agreement all highlight the dangers of lacking transparency in offshore financial transactions.
While the bank asserts that it was deceived by a sophisticated scheme, the lawsuit exposes the oversight of crucial verification steps. The ongoing legal dispute against Benjamin Lee and others sheds light on the blurry boundary between high-stakes financial transactions and alleged fraudulent activities.
This case underscores the importance of thorough due diligence, especially when dealing with offshore entities, and demonstrates how significant financial oversights can escalate into costly legal battles.
Sainul,
Editor.
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NEWS & VIEWS
A major Korean bank acquired US$14M in fake WeWork shares
In June 2019, Shinhan Securities, the investment arm of a top South Korean bank, sent US$14.2M to Aurora Grand in exchange for WeWork shares. However, it was later revealed that Aurora did not possess any actual WeWork shares.
Investors informed of TransTrack CEO’s conviction before funding
In 2020, CEO Meisesari was convicted of fraud by an Indonesian court for actions between 2016 and 2017. The case revolves around a software investment deal where plaintiff Rudolf Naibaho was promised significant profits.
GoTo collaborates with Alibaba to boost digital economy in Indonesia
The partnership will leverage Alibaba Cloud’s technologies to support GoTo’s extensive ecosystem. GoTo will utilize Alibaba Cloud’s services for a five-year duration.
Momos secures US$10M to enhance customer lifecycle for global brands using AI
Investors include 645 Ventures, Alpha Wave Global, and Peak XV. The Momos platform offers various solutions to empower brands to gain insights and enhance customer experiences throughout the customer lifecycle.
MEXC Ventures, Foresight Ventures, Mirana Ventures establish fund
This fund aims to support promising projects utilizing the Aptos platform by providing resources for developing critical Web3 applications using Aptos’s infrastructure.
Navigating changes in Southeast Asian funding landscape: An analysis of H1 2024 trends
The decrease in funding and deal flow highlights the vulnerability of the regional venture capital landscape to broader economic shifts.
CarbonEthics secures US$2.1M to restore natural ecosystems using technology
Intudo Ventures leads the investment. CarbonEthics combines environmental and commercial impacts to rehabilitate natural ecosystems, assist businesses in their decarbonization efforts, and create new revenue streams.
Wavemaker injects US$1.6M into NZ’s pre-employment screening startup Checkmate
Wavemaker Partners leads the investment. The funding will support Checkmate’s expansion into Australia, the US, and Southeast Asia, specifically the Philippines.
Amazon appoints long-time executive to lead India business amid intensifying competition
Samir Kumar, with 25 years at the e-commerce giant, will oversee Amazon’s consumer operations in the Middle East, South Africa, and Turkey as the country manager.
Fintech firms Lightnet, WeLab collaborate to establish Thailand’s virtual bank
They have applied for a Virtual Banking license with the Bank of Thailand. The alliance aims to transform Thailand’s financial landscape by modernizing banking services and providing an AI-powered intelligent experience.
YouTube partners with Shopee in Southeast Asia e-commerce collaboration
Under the YouTube Shopping initiative, viewers can purchase products shown on YouTube through links to Shopee. Plans are in place to expand the service to Thailand and Vietnam in the coming weeks.
FEATURES & INTERVIEWS
Reviving Sri Lanka’s tradition of innovation: The story of TRACE
TRACE focuses on nurturing ideas and turning them into tangible realities, laying the groundwork for a knowledge-driven economy.
Beyond 3PL: BBTruck’s 5PL solution for a smarter, greener global supply chain
CEO Steven Chou outlines BBTruck’s plans to expand into Southeast Asia, including Vietnam, Malaysia, Singapore, Thailand, and Indonesia by 2025.
CARDS by Cazh aims to revolutionize school management in Indonesia with integrated solutions
CARDS by Cazh offers a comprehensive SaaS platform to streamline operational and academic systems in educational institutions.
Exploring AI use cases in creative and sports industries despite feeling overwhelmed
Marketers are leveraging AI for market research, competitive analysis, social media management, and content creation.
KINTO enhances brand engagement and ROI with Omnichat
Omnichat is gearing up for a Series B funding round next year to fuel its growth, enhance AI capabilities, and expand into new markets.
A new era post-2G: Cloud technology’s role in propelling the telco industry forward
Cloud-based services offer higher margins compared to traditional voice and data plans, positioning telcos for long-term success.
Real-world challenges: Driving success through innovation and empathy for Filipino startups
Understanding societal issues is crucial for startups to address specific community pain points and drive success.
AI-powered recruitment: Transforming hiring processes in Southeast Asia
As AI continues to evolve, more advanced tools are expected to streamline hiring processes and uncover hidden talent.
THOUGHT LEADERSHIP
Striking a balance between trust and verification in the age of AI
Organizations must equip their teams with appropriate tools and training to effectively leverage generative AI while mitigating risks.
Cultivating a thriving workplace through shared values with E&C training
Outdated Ethics and Compliance training can leave companies and employees vulnerable to lapses, penalties, lawsuits, and backlash.
Bridging the digital divide: Enhancing SME financial operations and digital transformation in APAC
The future success of SMEs in Asia hinges on their ability to digitally transform with ongoing innovation and support from fintech providers.
Bridging the access gap to intermediary technologies to help countries escape the ‘middle income trap’
Even successful companies in emerging markets face barriers in accessing new technologies, putting them at a disadvantage compared to competitors.
FROM THE ARCHIVES
7 strategies to optimize your product page for increased sales
Before optimizing your page, ensure your site’s overall performance is satisfactory. Use a web crawler tool to analyze all pages from various SEO perspectives.
Building deep tech startups across borders: A guide for Singapore-based founders
Singapore-based founders venturing into the deep tech sector must establish a central position within the global network of players.
Crowdfunding for startups: Getting started and navigating the process
Seed funding sources can help kick-start your business, but attracting funds requires belief in your concept and strategy.
Zespri’s collaboration with agritechs to enhance kiwifruit production and distribution
Zespri launched ZAG, the Zespri Innovation Fund, to accelerate sustainable innovation in the kiwifruit industry.
Agate’s strategy for global domination in the gaming industry
Agate’s revenue model combines development services and content creation to position itself as a leader in the gaming industry.
International expansion strategies for Indonesia’s 2nd generation unicorns
Indonesia has rapidly produced unicorn startups, with international expansion being a key focus for continued growth.
Challenges faced by social impact startups and the importance of revenue and impact balance
Collaboration across parties can help social impact startups address unique challenges and drive success.
Liminal’s approach to compliance and efficiency in the crypto industry
Liminal aims to build a compliant wallet operating system for securely managing various digital assets and blockchains.
Barriers preventing fund managers from adopting tokens: Insights from Calastone
Adoption remains a challenge for tokenized investments, with connectivity and infrastructure being key barriers according to Ross Fox of Calastone.
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