Dear reader,
The complex case of Shinhan Securities’s investment in fake WeWork shares raises significant questions about transparency and accountability in global finance. What began as a seemingly straightforward transaction evolved into a web of fraud allegations, opaque offshore entities, and missing individuals.
At the heart of the case is the failure of due diligence—not just by Shinhan but by multiple parties involved. The use of British Virgin Islands shell companies, nominee directors, and a second escrow agreement all point to the risks posed by a lack of transparency in offshore financial dealings.
While the bank claims to be a victim of a sophisticated scheme, the lawsuit reveals the extent to which basic verification steps were missed. The ongoing legal battle against Benjamin Lee and others highlights the blurred lines between high-stakes financial deals and alleged fraudulent schemes.
This case serves as a reminder of the importance of rigorous due diligence, particularly when offshore entities are involved, and illustrates how high-level financial missteps can spiral into costly legal battles.
Sainul,
Editor.
—-
NEWS & VIEWS
A major Korean bank bought US$14M in WeWork shares. They were fake
In June 2019, Shinhan Securities, the brokerage and investment arm of a South Korean Big Five bank, transferred US$14.2M to Aurora Grand in exchange for WeWork shares; However, it turned out that Aurora did not actually own any WeWork shares.
Investors aware of TransTrack CEO’s guilty verdict before funding
In 2020, CEO Meisesari was found guilty of fraud by an Indonesian court for her actions between 2016 and 2017. The case centres on a software investment deal in which the plaintiff, Rudolf Naibaho, was promised a “significant profit.”
GoTo partners Alibaba to grow digital economy in Indonesia
The collaboration will leverage Alibaba Cloud’s technologies to support GoTo’s extensive ecosystem; GoTo will utilise the services of Alibaba Cloud for a five-year period.
Momos secures US$10M to power customer lifecycle for global brands using AI
The investors include 645 Ventures, Alpha Wave Global, and Peak XV. The Momos platform features various solutions to enable brands to drive insights and elevate customer experiences throughout the customer lifecycle.
MEXC Ventures, Foresight Ventures, Mirana Ventures establish fund
This fund will target promising projects built on the Aptos platform by providing resources for the development of critical Web3 use cases that utilise Aptos’s infrastructure.
Navigating the shifting landscape of Southeast Asian funding: An analysis of H1 2024 trends
The decline in funding and deal flow is a reminder of the regional venture capital landscape’s vulnerability to broader economic trends.
CarbonEthics nets US$2.1M to restore natural ecosystems using tech
Intudo Ventures is the lead investor; CarbonEthics blends environmental impact and commercial impact to restore natural ecosystems, help businesses on their decarbonisation journey, and create new revenue sources.
Wavemaker infuses US$1.6M into NZ’s pre-employment screening startup Checkmate
Wavemaker Partners is the lead investor: The capital will fuel Checkmate’s expansion into Australia, the US, and Southeast Asia, specifically the Philippines.
Amazon taps long-time exec to lead India business as competition intensifies
Samir Kumar has been with the e-commerce giant for 25 years; As the country manager, he will oversee Amazon’s consumer operations in the Middle East, South Africa, and Turkey.
Fintech firms Lightnet, WeLab partner to build Thailand’s virtual bank
They have submitted an application for a Virtual Banking licence with the Bank of Thailand. The consortium aims to empower Thailand’s financial future by revolutionising banking services and delivering an AI-powered intelligent experience.
YouTube, Shopee partner in Southeast Asia e-commerce tie-up
Under the YouTube Shopping tie-up, people will be able to purchase goods viewed on YouTube through links to Shopee; They plan to expand the service to Thailand and in Vietnam in a few weeks.
FEATURES & INTERVIEWS
Re-awakening Sri Lanka’s legacy of innovation: The story of TRACE
With a philosophy centred on nurturing ideas and transforming them into tangible realities, TRACE is building the foundation for a knowledge-driven economy.
Beyond 3PL: BBTruck’s 5PL solution for a smarter, greener global supply chain
CEO Steven Chou said BBTruck plans to enter Southeast Asia, such as Vietnam, Malaysia, Singapore, Thailand, and Indonesia by 2025.
CARDS by Cazh aims to transform school management in Indonesia with integrated solutions
CARDS by Cazh is a comprehensive SaaS platform designed to streamline educational institutions’ operational and academic systems.
Businesses explore use cases of AI in creative, sports industries despite feeling “overwhelmed”
Marketers are utilising AI for various purposes from market research, competitive analysis, social media management to content creation.
KINTO boosts brand engagement and ROI with Omnichat
Omnichat is preparing for a Series B funding round next year to drive its growth, enhance AI capabilities, and expand into new markets.
A new dawn in the post-2G era: How cloud technology can propel the telco industry to new heights
Cloud-based services offer higher margins compared to traditional voice and data plans, positioning telcos for long-term success.
Real-world challenges: How Filipino startups can drive success through innovation and empathy
Identifying societal problems requires startups to have a deep understanding of the pain points of specific communities.
AI-powered recruitment: Revolutionising hiring in Southeast Asia
As AI evolves, we can expect more sophisticated tools that further streamline hiring and uncover hidden talent.
THOUGHT LEADERSHIP
Balancing trust and verification: Navigating the rise of AI
To effectively leverage generative AI while mitigating risks, organisations should equip their teams with appropriate tools and training.
Fostering a thriving workplace with shared values through E&C training
Outdated E&C training leaves companies and their employees vulnerable to lapses, penalties, lawsuits, and blowbacks.
Overcoming the digital divide: Enhancing SME financial operations and digital transformation in APAC
The future 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 could help countries escape the ‘middle income trap’
Even the most successful companies in emerging markets face an access gap to new technologies, keeping them behind competitors.
FROM THE ARCHIVES
7 ways to optimise your product page to attract more sales
Before you start optimising your page, you need to pay attention to your site’s overall performance; For starters, use a web crawler tool to find all pages in a website and analyze them thoroughly from different SEO aspects.
If there is one thing investors are afraid of, it is lack of commitment from founders
Founders and investors are coming to the table from different perspectives; Nevertheless, the first starting point will be to enhance their understanding of each other, with the working assumption that I cannot change him or her.
How to build deep tech startups across borders
For those Singapore-based founders embracing the arduous deep tech path, there is no choice but to build themselves a central position in a deeply interconnected mesh of global players.
Crowdfunding for startups: Where to begin and how to go about it
The bad news is that you won’t get funds for your business from anyone who doesn’t believe in your concept; There are a few typical sources of seed funding that can help you kick-start your business.
Zespri wants to work with agritechs to improve kiwifruit production and distribution
In November, Zespri launched ZAG, the Zespri Innovation Fund, a US$2 million annual fund dedicated to accelerating sustainable innovation.
Indonesian gaming powerhouse Agate unveils strategy to conquer the global arena
Gaming companies provide development services for businesses or create their content, but Agate combines both aspects in its revenue model.
For Indonesia’s 2nd generation unicorns, international expansion is the name of the game
When it comes to producing unicorn startups, Indonesia has done a phenomenal job in a relatively short time.
Balancing revenue, impact remains the top challenges faced by social impact startups
For these social impact startups, cross-party collaboration can be a key to tackling these unique challenges.
Why Liminal sees compliance as the way to go for the crypto industry
Liminal aims to build an efficient and compliant wallet operating system where users can with various digital assets and blockchains securely.
Connectivity, infrastructure are key barriers for fund managers to adopt tokens: Calastone
How can we eliminate this barrier? According to Ross Fox of Calastone, adoption is a key challenge for tokenised investments.
The post Ecosystem Roundup: How Shinhan fell for fake WeWork shares | Momos secures US$10M | Shopee partners with YouTube in SEA appeared first on e27.