In a startling turn of events, a previous executive at Coinone, one of South Korea’s top digital currency exchanges, has received bribes to be listed specific digital currencies on the platform.
The accused executive, Jeon, allegedly received around 2 Billion Korean won ( approximately $1.5 million) betwixt 2020 and 2022 for facilitating the listing of digital currencies on Coinone that were prone to market value manipulation.
Prosecutors assert that some of the crypto tokens involved in the scandal were linked to corporations hired to manipulate digital currency prices. It’s worth noting that, the local digital currencies in the scheme reportedly include Pica Coin and Puriever.
Jeon’s case was heard at the Seoul Southern District Court following his initial arrest on bribery charges on March 22. Although while Jeon and his broker, Koh, have acknowledged the accusations, their legal representatives have refrained from formally admitting guilt until they have reviewed all the evidence.
Another previous Coinone employee, Kim, and their broker, Hwang, have likewise been implicated in the case. Nonetheless, Kim and Hwang have is still to respond to the charges brought against them during Thursday’s court hearing. It is alleged that Kim received $784,000 for their engagement in the illicit activities.
The subsequent trial for the four defendants is scheduled for June 15.
A recent local press statement, dated May 22, 2023, outlines that 46 coins were part of this illicit scheme, accounting for approximately 25 percent of Coinone’s portfolio of listed tokens.
The incident, which took place from November 2019 to December 2022, has raised concerns about the integrity of the market and the trust placed by investors and traders in digital currency exchanges.
With South Korea’s digital currency market valued at 19 trillion Korean won ( approximately $14.3 billion) as of the end of a year ago, it ranks among the most whole lot of digital currency markets globally.
As a result to the scandal, South Korean prosecutors are expanding their investigation to other local exchanges in their quest for additional evidence of digital currency listing manipulations on the broader market.