South Korean law enforcement authorities have captured an ex-Coinone employee in connection with a cryptocurrency bribery scam, in a startling development. The man, known as Jeon, is suspected of collecting KRW 1.9B (about US$1.47M) from a dealer in return for a coveted slot for a particular digital currency on Coinone’s trading platform. The arrest is a big step forward in the continuing fight against corruption in the cryptocurrency sector.
— Crypto Trader Pro 🇺🇸 (@CryptoTraderPro) March 23, 2023
Cryptocurrency bribery scandal
The Seoul Prosecutor’s Office withholds the identity of the detained ex-official from Coinone due to privacy restrictions. They have, however, suggested that the person may be implicated in a bitcoin bribery case. Lee Sang-jun, the CEO of Bithumb, is also being investigated for identical charges. While authorities have not yet ordered Lee’s arrest, this inquiry might lead to an examination of other prominent crypto exchanges in the area. Keep tuned for more on this developing story.
The scandal has sent tremors across South Korea’s cryptocurrency business, which has been examined in recent years for suspected irregularities. Coinone, one of the country’s largest cryptocurrency exchanges, has yet to comment on the arrest.
The detention of the former Coinone staff is a significant step forward in investigating the suspected bribery incident, raising concerns about the integrity of cryptocurrency listings in South Korea. The case is expected to have far-reaching implications for the country’s digital currency economy, and authorities have said they would continue investigating irregularities in the sector.
Korean crypto industry woes
The cryptocurrency business in South Korea is no new to controversy, with the most recent being a bribery incident involving bitcoin listings. Fraud, hacking, and other issues have plagued the sector. To reduce the danger of fraud and money laundering, the country’s financial authorities imposed strict controls on cryptocurrency trading in 2017 and outlawed initial coin offerings. Despite the crackdown, the sector has difficulties with openness and trust.
The detention of a former Coinone staff and the investigation into Bithumb CEO Lee Sang-jun have highlighted the need for more transparency and oversight in the South Korean cryptocurrency industry.