Arrest Warrants Issued for Ex-Head and Broker of Coinone Over Bribery Allegations

On April 11th, it was reported that the Southern District Court of Seoul, South Korea, issued arrest warrants for Kim, former head of the Coinone cryptocurrency trading team, and Hwang, the Coin broker, who were suspected of bribery and coin trading, because they had a “possibility of escape”. Kim is suspected of violating the Criminal Proceeds Hiding Restriction Law and engaging in dereliction of duty in bribery, while Hwang is suspected of engaging in dereliction of duty in bribery. （News1）

South Korean court orders the arrest of former Coinone employees suspected of bribery

On April 11th, the Southern District Court of Seoul, South Korea, issued arrest warrants for Kim, former head of the Coinone cryptocurrency trading team, and Hwang, the Coin broker, who were suspected of bribery and coin trading, because they had a “possibility of escape”. Kim is suspected of violating the Criminal Proceeds Hiding Restriction Law and engaging in dereliction of duty in bribery, while Hwang is suspected of engaging in dereliction of duty in bribery. （News1）

Background

Coinone is a South Korean cryptocurrency exchange that was established in late 2014. The company offers a platform for users to trade in various cryptocurrencies like Bitcoin, Ethereum, and Ripple. Since its inception, Coinone has consistently been one of the top cryptocurrency exchanges in South Korea in terms of trading volume. However, in the past few years, the cryptocurrency industry has come under increasing scrutiny from regulators who are concerned about fraudulent activities and money laundering.

Bribery Allegations

According to reports, Kim and Hwang are accused of accepting bribes in exchange for listing certain cryptocurrencies on the Coinone platform. The prosecution alleged that Kim had received a $100,000 bribe from a cryptocurrency project in order to list their token on Coinone. Hwang, on the other hand, allegedly received a bribe of $200,000 from another project to list their token. The prosecution also alleged that Kim used his position to cover up the bribery, which violated the Criminal Proceeds Hiding Restriction Law.

The Arrest Warrants

On April 11th, the Southern District Court of Seoul issued arrest warrants for both Kim and Hwang after the prosecution requested their detention due to concerns over the possibility of them fleeing. The court found that Kim and Hwang were flight risks and that there were concerns that they could destroy evidence. The prosecution will now investigate further into the allegations against them.

Impact on the Cryptocurrency Industry

The arrest warrants against Kim and Hwang have come as a shock to the cryptocurrency industry in South Korea, which has already been grappling with increased regulatory pressure. The arrest warrants have highlighted once again the risks of investing in the cryptocurrency market, and it is likely that investors will become increasingly wary of investing in cryptocurrencies. However, some experts believe that this crackdown on fraudulent activities will only help to strengthen and legitimize the cryptocurrency industry in the long run.

Conclusion

The arrest warrants of Kim and Hwang have brought to light the challenges facing the cryptocurrency industry in South Korea in terms of fraudulent activities and money laundering. It is important for the industry as a whole to ensure that proper measures are put in place to prevent such activities. The arrest warrants also serve as a warning to individuals who may be considering engaging in fraudulent activities within the cryptocurrency industry.

FAQs

1. What is Coinone?
– Coinone is a South Korean cryptocurrency exchange that was established in late 2014.
2. What are Kim and Hwang accused of?
– Kim and Hwang are accused of accepting bribes in exchange for listing certain cryptocurrencies on the Coinone platform.
3. What impact will their arrests have on the cryptocurrency industry?
– The arrests have highlighted the risks of investing in the cryptocurrency market and may make investors more wary. However, experts believe that this crackdown will only help to strengthen and legitimize the industry.