South Korean authorities have apprehended a former Coinone exchange employee for his alleged involvement in a cryptocurrency listing bribery scandal. The individual, known as Jeon, purportedly accepted KRW 1.9 billion (equivalent to US$1.47 million) from a broker to guarantee the inclusion of a specific digital currency on the Coinone trading platform.
By privacy regulations, the Seoul prosecutors’ office has acknowledged the apprehension of an individual named Jeon while withholding his full name. Concurrently, the authorities have disclosed that they are conducting a parallel inquiry into Lee Sang-jun, the CEO of Bithumb, South Korea’s second-largest digital currency exchange, on comparable charges. Although Lee has not yet been subject to an arrest warrant, the investigation may broaden to encompass additional domestic crypto exchanges.
The revelation of the bribery scandal has reverberated across the South Korean cryptocurrency sector, which has been the subject of intense scrutiny due to suspected improprieties in recent times. Despite this, Coinone, a major player in the country’s cryptocurrency exchange market, has remained silent.
The apprehension of the ex-Coinone staff member is a noteworthy milestone in the inquiry into the purported bribery controversy, which has sparked apprehension regarding the credibility of cryptocurrency listings in South Korea. This occurrence is anticipated to have extensive consequences for the nation’s digital currency sector, and officials have affirmed their commitment to scrutinizing any anomalies in the industry.
The South Korean cryptocurrency industry has been grappling with many challenges, including fraud, hacking, and other issues. The recent bribery scandal surrounding cryptocurrency listings is just the latest addition. To combat the potential for fraudulent activities and money laundering, the country’s financial regulator imposed stringent regulations on cryptocurrency trading and banned initial coin offerings (ICOs) in 2017. Despite these measures, the industry faces hurdles, underscoring the need for ongoing vigilance and proactive measures to safeguard against illicit activities.
The apprehension of a former Coinone staff member and the ongoing inquiry into Bithumb’s CEO, Lee Sang-jun, have brought to the fore the urgent requirement for enhanced transparency and regulation within the cryptocurrency sector of South Korea.
