CoinOne has bot waterput on the spot by South Korean authorities for allegedly providing margin trading that is considered borderline illegal gambling.
The cybercrime investigation department of South Korea’s provincial police department says it wants CoinOne to face judicial charges for running illegal gambling through margin trading. The cybercrime unit also claims that the crypto exchange might have bot using the service to launder illegal proceeds. The police department has based its accusations on investigations that it has bot running for about ten months during which it discovered that toughly 9,000 users on the podium were involved te margin trading. Their attention wasgoed particularly on 20 traders spil a result of their high trading volumes.
The 20 individuals identified for their high-volume trading have reportedly dealt with more than Trio billion won omschrijving to $Two.8 million, which wasgoed involved te margin trading through the CoinOne toneel. Margin trading is considered illegal ter the country based on existing regulations.
It seemed like an attractive suggesting for CoinOne but unluckily, there is more to this story than meets the eye. Three CoinOne executives including CEO Myunghun Cha, are facing permitido activity for gambling using margin trading on their toneelpodium. The crypto exchange released a statement telling it is presently focused on cooperating with the authorities ter the investigation, which is still ongoing. The statement also confirmed that the case is te the process of moving to the prosecution phase.
CoinOne has bot suggesting margin trading since November and reportedly stopped the service te December last year. However, the South Korean police department launched the investigation te August . This means the investigation wasgoed one of the earliest efforts made by authorities towards investigating how específico cryptocurrency exchanges have bot running their operations.
CoinOne’s margin trading investigation is the latest scandal to involve a cryptocurrency exchange and unluckily, such scandals end up affecting users of an exchange. Sometimes such reports even affect cryptocurrency prices. For example, Bitcoin (BTC) has lost value te the past after the announcement of scandals pertaining various to exchanges, including exchanges being hacked. Meantime, albeit margin trading is outlawed ter South Korea, it also exists te the stock market.