• Tue. Aug 22nd, 2023

Two Coinone Employees Arrested For Cryptocurrency Exchange Fraud

Apr 26, 2023
Two Coinone Employees Arrested For Cryptocurrency Exchange Fraud
Marcel Bich

Top manager and broker accused of taking bribes to list tokens.

Authorities in South Korea arrested two employees of the Coinone exchange. A former top manager and a broker are accused of taking bribes for listing certain tokens, South Korea’s News1 reported.

According to media reports, an arrest warrant has been issued for Kim Mo, Coinone’s former top manager who previously ran the cryptocurrency exchange’s listing department, and broker Hwang Mo. The action was taken by South Seoul District Court Chief Judge Kim Ji-sook, as authorities feared the fraudsters could flee.

The defendants received substantial sums for listing tokens on the exchange violating the Criminal Proceeds Control Act. Specifically, Kim Mo received 2 billion won (about $1.51 million) from Hwang Mo for listing virtual assets. Meanwhile, Kim previously claimed to have received 1 billion won (about $756,000) for some “services,” but the investigation revealed that was a lie. Both exchange employees are accused of breach of trust and Kim is also accused of violating anti-corruption laws.

Coinone may be linked to other crimes, including murder

The criminal scheme came to light only recently, at the end of March. Back then Yahoo Finance reported on the arrest of an exchange employee for bribery, but the details were unknown. Now we know not only the names of the accused but other details of the case.

For example, one of the cryptocurrencies listed on Coinone is Furiever Coin. According to the Korean media, transactions with this coin could be linked to the recent murder of a woman in the neighborhood of Seoul. These horrific events could have been revenge for a bad investment, police said. In addition, Pica Coin (PICA) is also known to have been traded as part of a fraudulent scheme.

Coinone is a South Korean exchange with an average daily spot trade volume of more than $80 million, which began operations in 2015. The main clients of the platform are located in Asia. Coinone allows trading in several hundred different digital assets, the most popular of which are Bitcoin, Ethereum, XRP, and DOGE.