Coinnest Executives Indicted for Accepting Bribe for Coin Listing


#1

The Seoul Southern District Public Prosecutors’ Office has reportedly indicted two executives of South Korean crypto exchange Coinnest for accepting a bribe in exchange for listing a cryptocurrency. According to local media, they received 1 billion won (~US$890,000) worth of cryptocurrencies – mostly BTC.

Coinnest Execs Indicted for Accepting Bribe

The financial investigation department of the Seoul Southern District Public Prosecutors’ Office said last week that it has indicted the CEO and COO of crypto exchange Coinnest “on charges of receiving a bribe,” Korea IT Times reported.

Coinnest Executives Indicted for Accepting Bribe for Coin Listing

CEO Kim Ik-hwan and COO Cho have been accused of accepting a bribe from the CEO of a company seeking to list its cryptocurrency on Coinnest. Local media refer to this coin only as “S coin.”

In addition to indicting Coinnest’s executives, “The prosecution also indicted another Kim, the CEO of S Coin, on charges of giving bribery, asking the two Coinnest executives to help with the virtual currency listing process,” the publication elaborated, adding:

Coinnest CEO Kim and [COO] Cho received 1 billion won [~US$890,000] worth of bitcoin and S coin in early February this year in return for offering their convenience in listing the S coin.

Coinnest Executives Indicted for Accepting Bribe for Coin Listing

Specifically, the duo “received a total of 110 bitcoins worth 860 million won [~$771,270]” on Feb. 5 and 6, the news outlet detailed, adding that they also received “2 million S coins worth 70 million won [~$62,778] each” on Feb. 12 and 14.

The prosecution believes that the executives provided the issuer of S coin with the “unfair” convenience of listing the coin, such as listing “without precise examination of the technology of S coin and hastening the listing date of S coin,” Yonhap detailed.

Previous Charges

Coinnest Executives Indicted for Accepting Bribe for Coin Listing

The two executives of Coinnest were also indicted on April 23 on a different charge. Korea IT Times explained that they were charged with “violating the law on specific economic crimes, including fraud, along with the company executive Hong. At that time, Kim and his party were suspected of having embezzled money by selling fake coins as if they existed.”

In April, all major crypto exchanges in South Korea jointly declared self-regulation under the guidance of the Korean Blockchain Industry Association. However, Coinnest opted out. When the association announced that 12 out of its 23 exchange members had completed self-inspection in July, Coinnest was not among them.

Coinnest, however, was one of the crypto exchanges that recently completed implementing short-term security measures, the Korea Internet and Security Agency (KISA) and the Korean Ministry of Science and Technology announced in August.

What do you think of Coinnest’s executives accepting a bribe for coin listing? Let us know in the comments section below.


#2

this is very bad news any exchanges never ask bribe for listing
and also coin owners should never give them bribe to list their coin
this type of act cause corruption and destroy trust that is not good for
crypto and related industries


#3

What happening in the crypto world one should not violate the rule
Otherwise trust will end so value the rules


#4

Unless and until there are regulations, these things will keep on happening. We need some strict laws to show that nobody will be spared if they violate even the ethical boundaries in crypto.


#5

The initial process for definite development is like that. lots of obstacles, that’s normal. These obstacles are experiences for crypto regulation making. I’m sure, crypto development next year will be even better.


#6

Indeed, as I would like to think I am extremely positive that in this 2018, the cost of ethereum and bitcoin will ascend high after the market recuperates from the fall since they are exceptionally potential and important coin, some altcoin will likewise ascend higher than the were before the fall and some will crash yet I am certain crypto will develop higher this year even as we are encountering a major fall in cost by and by


#7

succesfull business will be successful without them. institutional investors is just a meme at this point, anyone can buy right now anyway. i concede the point that it will legitimize the industry but in the end, how do you actually regulate something that is trustless, global, decentralized and has 10 years head start?