Police te Seoul say they have arrested employees from “at least two” South Korean cryptocurrency exchange platforms, including Coinnest.
Media reports te the renta eis that Kim Ik-hwan, Coinnest’s CEO and co-founder, wasgoed among those arrested, but police have so far refused to confirm the identity of the suspects. Coinnest is considered to be one of the largest platforms te South Korea, and, along with Coinone and Korbit, goes the pursuing pack behind the “big two”: Bithumb and Upbit.
This marks the very first time the head of any South Korean cryptocurrency exchange toneelpodium has bot arrested. Police have not yet exposed the name of the 2nd exchange toneelpodium, which is also believed to be Seoul-based, but smaller ter size than Coinnest.
Vanaf media outlet Hanguk Ilbo, a spokesperson for the South Korean Prosecution Office stated, “Police have arrested four people, including the CEOs of two cryptocurrency exchanges, spil well spil two senior executives. The four have bot charged with embezzlement and fraud.",
Prosecutors say the accused had diverted customers’ funds amounting “hundreds of billions of Korean won” (1 billion won = USD 940,000) into individual cryptocurrency accounts.
Police say that they are also looking into charging the four arrestees with further offenses, including commercial law violations.
The Seoul branch of the Financial Supervisory Service last month investigated three exchange platforms located te the Yoido district of Seoul – Coinnest included – arresting a number of employees and seizing financial records. The raid is said to have unearthed further irregularities at the exchanges, leading the police to widen the scope of their investigations.
Police said they noticed a number of suspicious transactions occurring at the exchanges, spil well spil commission toverfee irregularities.
Media outlet Seoul Kyungjae says that the exchanges at very first attempted to voorwaarde all irregularities were the result of administrative errors, but quickly switched their tune spil the investigation deepened.
Coinnest’s international backers include Bitmain and Quantum, and the company last month signed a partnership overeenkomst with the influential Graduate Schoolgebouw of Information Security at Seoul’s elite Korea University.
Among 212 exchanges followed by Coinmarketcap, Coinnest is 67th te terms of daily trading volume (USD 6.3m).