A former executive at Coinone, one of the country’s top cryptocurrency exchanges, has pleaded guilty to accepting bribes in exchange for listing specific cryptocurrencies on the platform.
This article explores the case, highlighting the alleged market price manipulation and the involvement of other individuals.
South Korean prosecutors are now expanding their investigation to uncover potential cryptocurrency listing manipulations across other local exchanges.
Former Coinone Executive Accused of Bribery: A former executive, identified only as Jeon, from Coinone, has pleaded guilty to charges of accepting bribes to list certain cryptocurrencies on the exchange.
Prosecutors claim that Jeon received approximately 2 billion Korean won between 2020 and 2022 in exchange for listing cryptocurrencies on Coinone, despite being aware of market price manipulation associated with these tokens.
Tokens Linked to Market Price Manipulation: According to the prosecutors, some of the tokens involved in the scandal were associated with companies hired to manipulate cryptocurrency prices.
Notable tokens mentioned include Pica Coin and Puriever. The court proceedings took place at the Seoul Southern District Court after Jeon’s initial arrest on bribery charges on March 22.
Jeon, along with his broker Koh, has acknowledged the accusations but have yet to formally admit guilt pending a review of the available evidence.
Involvement of Other Individuals: Another former Coinone employee, identified as Kim, and their broker Hwang, have also been implicated in the case.
However, during the court hearing, Kim and Hwang have not responded to the charges brought against them. It is alleged that Kim received a sum of US$784,000 for their role in the alleged wrongdoing.
Widespread Transparency Issues in Cryptocurrency Listings: The case highlights the lack of transparency in cryptocurrency listings on exchanges.
Hwang Suk-jin, a Seoul-based information security, and financial crime expert, suggests that while some exchanges practice transparency, many employees across exchanges engage in such behavior as common practice. This scandal underscores the need for increased regulatory scrutiny and transparency in the cryptocurrency industry.
Prosecutors Expand Investigation to Other Exchanges: South Korean prosecutors are now widening their investigation to other local exchanges in search of additional evidence related to cryptocurrency listing manipulations in the broader market.
The aim is to uncover any systemic issues and ensure a fair and transparent environment for cryptocurrency trading in South Korea.