Korean crypto executives allegedly profited $2.3M from coin listing scandal

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Korean crypto executives allegedly profited $2.3M from coin listing scandal:- According to a recent report from The JoongAng, four employees of the South Korean cryptocurrency exchange Coinone, namely Mr. Jeon, Mr. Kim, Mr. Ko, and Mr. Hwang, have been indicted for allegedly using illicit methods to make profits of over 2.98 billion Korean won (around $2.26 million). This occurred during coin listings of various projects from November 2019 to December 2022.

Coinone

Remarkably, the incident involved around 46 different coins, which accounted for nearly 25% of all tokens listed on Coinone during that time period. According to prosecutors, Coinone executives and staff members allegedly required projects to sign a market-making (MM) contract before listing their coins. This contract involved a specific market-making company and aimed to ensure enough trading activity once the coins were listed.

However, the recipients of these contracts are accused of engaging in illegal activities, like artificially increasing trading volume and prices through cross-trading. Additionally, Coinone executives allegedly tempted projects to sign these contracts by offering to waive the “listing deposits” they usually required.

Two senior executives and two brokers from Coinone, a major cryptocurrency exchange in South Korea, are facing charges of breach of trust and obstruction of business. These charges are related to their alleged involvement in market manipulation activities. Coinone is a well-known player in the cryptocurrency industry, with a significant trading volume of $27.2 million in the past 24 hours. Prosecutors have commented on the actions of these individuals, but further details are not provided.

According to prosecutors, the actions of the individuals have caused confusion among exchange users about trading volume and market prices. This confusion may have encouraged people to participate in coin transactions and buy the coins in question.

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