Following a 10-month investigation by its cybercrime unit, a South Korean police department confirmed it would recommend prosecuting cryptocurrency exchange giant Coinone on charges of illegal gambling.
According to a Yonhap report, a southern provincial police department ter South Korea has determined that Coinone’s margin trading service is akin to illegal gambling, according to existing laws that, that might be used for money laundering of criminal proceeds.
‘Margin trading is similar to credit (borrowed) trading on stock markets,” an extract from the report reads, “but it wasgoed based on gambling because it did no have permission from the authorities.” Coinone is said to have provided up to 4x of the initial deposit, ter addition to gaining commissions for a margin trade. Margin trading wasgoed among the earliest services to be barred among crypto trading platforms te China before a broader clampdown on exchanges and a blanket verbod on ICOs te .
A 10-month investigation determined that some Nineteen,000 users had participated ter Coinone’s margin trading verhoging, an suggesting which began ter late Traders were predominantly aged inbetween their 20s to 50s and were unemployed, office workers and self-employed, details from the investigation, which began ter August , exposed.
The police specifically narrowed ter on 20 high-volume traders after they were alleged to have treated transactions overheen Trio billion won ($Two.78 million) inbetween Trio,000 to 13,000 trades through Coinone.
The police department exposed it took almost a year to investigate the toneel since it wasgoed the very first investigation of its kleuter to delve into the operations of a domestic cryptocurrency exchange.
Further, the police confirmed plans to thrust for charges against three senior Coinone executives including chief executive Myunghun Cha and a co-director along with recommending the 20 high-volume trading to the prosecutor’s office.
One of Korea’s largest cryptocurrency exchanges, Coinone has repeatedly denied all charges since the beginning of the investigation, with one unnamed employee telling Yonhap:
Wij do not consider it illegal because it has bot legally reviewed by lawyers before [its launch]. Since wij did not receive rente on the part of the lender who spotted four times the margins, I cannot see it [spil a crime].
Featured photo from Shutterstock.
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