South Korean Court Sentences Former Coinone Executive for Bribery
A former senior executive of the cryptocurrency trading platform Coinone has been sentenced to four years in prison by a South Korean court. The individual, identified only as Jeon, was found guilty of accepting bribes in exchange for listing altcoins on the platform. Jeon, who served as the former general director of coin listings at Coinone, was also fined $1.4 million.
Another Individual Sentenced to Three Years
In addition to Jeon, another individual named Kim, who was the manager of Coinone’s listing team, was given a three-year jail term. The court also sentenced two crypto “brokers” involved in the case, with one receiving a 2-year and 6-month jail term and the other being imprisoned for 1 year and 6 months. All four individuals were charged with breach of trust-related offenses.
Listing Altcoins to Manipulate Prices
The court heard that the altcoins were listed on Coinone with the intention of driving up their prices. Kim claimed that he had no knowledge of any price manipulation and did not conspire with Jeon. However, the judge stated that it was reasonable to assume Kim was aware of the consequences and purposefully engaged in market manipulation.
Crackdown on Crypto Price Manipulation
This case is part of South Korea’s efforts to crack down on crypto price manipulation. Prosecutors presented evidence showing that both Jeon and Kim had accepted payments in cryptocurrencies and cash from brokers between 2020 and 2022. The judge emphasized the need for regulators to monitor and manage listing processes on crypto exchanges more effectively.
Bithumb Executives Accused of Manipulating Coin Prices
In a separate investigation, executives from Coinone’s rival, Bithumb, have also been accused of attempting to manipulate coin prices. This further highlights the need for increased oversight and regulation in the cryptocurrency industry in South Korea.
Busan’s Digital Assets Trading Platform
Meanwhile, Busan, South Korea’s second-largest city, plans to launch a digital assets trading platform. Originally intended to list cryptocurrencies, the platform will now focus on trading digitized commodities and tokenized IP rights instead.
Hot Take: South Korea Takes Firm Stance Against Crypto Price Manipulation
The sentencing of a former Coinone executive and others involved in bribery and market manipulation demonstrates South Korea’s determination to crack down on illegal activities in the cryptocurrency sector. With increased scrutiny and stricter regulations, authorities aim to maintain integrity and compliance within crypto exchanges. These actions send a strong message that unethical practices will not be tolerated. As the industry continues to evolve, it is crucial for regulators to establish effective monitoring processes to protect investors and ensure fair market conditions.
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