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Ex-Coinone Exchange Official Arrested for Crypto Bribery Scandal

Published 23/03/2023, 11:10
Ex-Coinone Exchange Official Arrested for Crypto Bribery Scandal

  • Ex Coinone official arrested for taking KRW 1.9B for listing digital currency.
  • Bithumb CEO under investigation for similar bribery allegations.
  • The cryptocurrency industry in South Korea needs more transparency and regulation due to fraud, hacking, and other issues.

South Korean authorities have arrested a former employee of the Coinone exchange, who was allegedly involved in a bribery scandal involving cryptocurrency listings. The individual, identified only as Jeon, reportedly received KRW 1.9 billion (approximately US$1.47 million) from a broker to ensure that a particular digital currency was listed on the Coinone trading platform.

Due to privacy rules, the Seoul prosecutors’ office confirmed Jeon’s arrest but declined to reveal his full name. However, the authorities have stated that they are also investigating Lee Sang-jun, the CEO of Bithumb, the country’s second-largest cryptocurrency exchange, on similar allegations. While the prosecutors have not yet requested an arrest warrant for Lee, the investigation may expand to cover other local crypto exchanges.

The news of the bribery scandal has sent shockwaves throughout the South Korean cryptocurrency industry, which has been under scrutiny for alleged irregularities in recent years. However, Coinone, one of the country’s largest cryptocurrency exchanges, has yet to comment on the arrest.

The arrest of the former Coinone employee marks a significant development in the investigation into the alleged bribery scandal, which has raised concerns about the integrity of cryptocurrency listings in South Korea. The case is expected to have far-reaching implications for the country’s digital currency industry, and authorities have indicated they will continue investigating irregularities in the sector.

The bribery scandal involving cryptocurrency listings is just the latest issue to hit the South Korean cryptocurrency industry, which has struggled with fraud, hacking, and other problems. In 2017, the country’s financial regulator banned initial coin offerings (ICOs) and imposed strict regulations on cryptocurrency trading to curb the potential for fraud and money laundering.

The arrest of the former Coinone employee and the investigation into Lee Sang-jun, the CEO of Bithumb, have spotlighted the need for greater transparency and regulation in the South Korean cryptocurrency industry.

The post Ex-Coinone Exchange Official Arrested for Crypto Bribery Scandal appeared first on Coin Edition.

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