- 1 South Korean police officials detained Jeon on March 22, 2023, over bribery charges.
- 2 South Korean prosecutors will examine local cryptocurrency exchanges: Reports.
Cryptocurrency Exchange Coinone’s executive Jeon is accused of receiving approximately 2 billion in Korean currency. It is claimed that a bribe was taken to list cryptocurrencies on the exchange that were prone to market manipulation.
According to the attorney, many tokens involved in the scandal had direct or indirect connections with organizations hired to manipulate the price. As per data, the digital currency involved in the scheme were Puriever and Pica Coin.
Earlier on March 22 this year, Police officials detained Jeon, and a lawsuit against him was heard in the Seoul Southern District Court.
The subsequent trial date for four defendants has been scheduled for June 15, 2023.
A regional media outlet reported that more than 45 coins were involved in this illegal scheme, constituting around 25% of Coinone-listed tokens. The incident could have a serious impact on investor sentiments. Illicit schemes have birthed doubts among investors regarding the industry and the market’s integrity.
Data verified by local media outlets reveals that the cryptocurrency market of South Korea is valued at 19 trillion Won, which is almost equivalent to $19.3 billion in U.S. currency.
After the Coinone scandal, Korean attorneys have been working to trace more illegal activities from native cryptocurrency exchanges in the country. CoinMarketCap states that the total number of coins registered on Coinone is 161 in 175 pairs. The 24-hour trading volume of the crypto exchange is $25,632,106.27.
South Korean Regulators on High Alert After Terra LUNA?
The demise of the algorithmic stablecoin LUNA has forced South Korean regulators to inspect the exchanges operating in the country.
Terraform Labs, the parent company of Luna and TerraUSD, was founded by Do Kwon and Daniel Shin in 2018 in South Korea. The native tokens of Terraforms became popular after their launch, and before its failure, it had more than 1 million investors.
The disastrous events wiped thousands of millions of dollars from the market in just a few days. A few weeks after the collapse, it was reported that Kwon, a co-founder of the company, had fled from his country.
Several industry experts claim that Do Kwon was privy to problems with his Terra and LUNA, but others say that it was just a coincidence. Mostly every country in which trading TerraUSD and LUNA was legal has filed charges against the company’s co-founders, including the Chief Financial Officer.
Earlier on April 22, TheCoinRepublic reported that police officials in Montenegro detained Kwon for using forged documents, including a passport, driving license, and a few other documents.
The Higher Court of Montenegro has denied bail to the Terraform Labs co-founder. Earlier on May 18, the lower court agreed to grant bail to Do Kwon and one other executive of Terraform Labs for the sum of $440,000.
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.