In connection with a listing scandal on South Korea’s leading cryptocurrency exchange Coinone, four criminal complaints were noted. The news broke out on May 21, creating shock waves in the country’s crypto industry. In the country, it raised concerns about the integrity of the market. The indictments include two executives, two brokers, and other employees potentially involved in this elaborate plot. Here are the details…
Shock accusation to the cryptocurrency exchange
cryptocoin.com As we have also reported, there are serious accusations against Coinone, one of the largest exchanges in South Korea. It turned out that the exchange did not carry out an ethical listing process. In this respect, some employees in particular were blamed. Top of the list of accused is Coinone’s listing team leader, Kim Mo, and listing broker, Hwang Mo. Both people were formally charged by prosecutors. In addition, two other people involved in the scandal also faced indictments. However, their specific roles are not disclosed at this time. Former sales chief (CGO) Jeon Mo-ssi also remained subject to investigation. However, it remains unclear whether he will face charges as well.
According to prosecutors’ findings, Coinone executives were found to accept substantial payments in exchange for listing at least 46 cryptocurrencies on their platform. Surprisingly, these 46 coins made up 25 percent of all coins listed on Coinone. Prosecutors think the number of cryptocurrencies affected may increase as investigations continue. Thus, he warns that the depth of deception can be revealed.
The details are annoying: There is market manipulation
The scandal became even more distasteful when it was revealed that Coinone executives were actively engaged in market manipulation. They encouraged listing parties to enter into contracts that required them to route orders through market makers. These firms also manipulated prices through cross-trading and artificially inflated their trading volumes. As an incentive, Coinone has waived the listing deposit for parties signing such contracts.
As a result, Coinone executives accepted payment to list at least 46 of the cryptocurrencies currently available on their exchanges. This number represents 25 percent of all cryptocurrencies listed on Coinone. But prosecutors say that number could rise as investigations continue. Coinone members received a total of 2.98 billion won ($2.27 million) in exchange for listing related cryptocurrencies.
In addition to demanding payment from parties who want their coins to be listed, Coinone has encouraged some parties to facilitate market manipulation. Exchange managers are reportedly encouraging the listed parties to sign a contract that forces them to send orders through market makers. The market maker then manipulated the prices. It then falsely increased its trading volumes through cross-trading. In exchange for the signing of these contracts, Coinone waived the listing deposit for the listing party. Prosecutors said that this announced market manipulation misled exchange users regarding the volume and price of the cryptos involved.
