South Korea has been cracking down on illicit activities within the cryptocurrency industry, and recent events have detained several Coinone executives. Kim Mo, the listing team leader, and Hwang Mo, a listing broker, have been arrested on suspicion of taking bribes to list certain cryptocurrencies on the platform.
According to reports, the executives allegedly received billions of won in bribes collectively distributed among themselves. Kim Mo reportedly admitted to receiving a bribe worth one billion won, while Hwang Mo was charged with breach of trust. Chief Judge Kim Ji-sook made the arrests at the Seoul Southern District Court.
Coinone is one of the largest cryptocurrency exchanges in South Korea, and its executives’ detention could be a significant blow to the platform’s reputation. However, it is worth noting that the exchange has already completed the registration policies required by the local regulators in 2021.
The arrests come at a time when South Korea’s cryptocurrency industry has been in the news for all the wrong reasons. A recent hacking attack on the GDAC platform resulted in the theft of over $13 million worth of digital currencies. The incident has raised concerns about the security of cryptocurrency platforms and the need for stricter regulations in the industry.
The Do Kwon saga has also put a spotlight on the need for stricter enforcement of cryptocurrency laws. Kwon, the co-founder of Terraform Labs, allegedly became a fugitive after the collapse of LUNA/UST. Multiple investors and agencies blamed him for the adverse event and insisted he faces justice for his actions.
The recent arrests of Coinone executives demonstrate South Korea’s commitment to tackling illegal activities in the cryptocurrency industry. It remains to be seen how the case will unfold and its impact on the industry as a whole. However, it is clear that cryptocurrency platforms and their executives must adhere to stricter regulations to avoid legal action and potential damage to their reputations.