Cryptocurrency exchange Bithumb is under investigation by the Seoul Southern District Prosecutor’s Office’s Financial Investigation Division 2 for listing tokens in exchange for money. The investigation follows a similar case involving Coinone, which was investigated last month for the same reason.

The investigation of Bithumb came after an employee of its parent company, Bithumb Holdings, named Mr. Lee, was accused of listing a certain token on the exchange in return for money. The prosecution has seized and searched the offices of Bithumb Holdings and Lee’s aunt’s home.

Experts have highlighted the need for the crypto asset industry to improve its systems and strengthen punishments to prevent such practices. The crypto asset industry has long been plagued by controversies over the practice of illegal listing, which involves listing tokens for money.

Other crypto exchanges, such as Upbit, Corbit, and Gopax, are also rumored to be under investigation by the prosecution for illegal listing. Legal and industry experts have called for institutional improvements and stronger penalties to prevent such practices from occurring.

The current maximum sentence for those involved in illegal listing is 2 years and 5 years for the person who gave money and the person who received money, respectively, which is considered weak by some. Lawyer Hong Pureun, representative of D’CENT, a law firm specializing in crypto assets, said that strengthened regulations are needed, and the Basic Law on Digital Assets, currently being discussed in the National Assembly, could provide a solution.

There are also calls for the division of authority in the cryptocurrency exchange industry, similar to the stock market. In the stock market, various institutions such as the Korea Exchange and the Korea Securities Depository are responsible for listing and deposit protection. In contrast, crypto exchanges have all these functions, which some experts believe gives them too much power.

The investigation of Bithumb and Coinone for illegal listing has raised concerns about the wider crypto asset industry. However, it has also highlighted the need for systemic improvements and stronger punishments to ensure the integrity and stability of the industry.

#Bithumb #Upbit #Coinone #Corbit #azcoinnews

This article was republished from azcoinnews.com

In the world of cryptocurrency, the integrity of trading platforms and their operators is crucial to maintaining the trust and confidence of investors. Unfortunately, a recent news report from Seoul highlights how some unscrupulous individuals seek to profit from the market by resorting to illegal means.

According to the report from the Korean news agency Newsis, a broker named “Mr.Go” has been arrested and charged with bribery for allegedly attempting to offer kickbacks to employees of the cryptocurrency exchange Coinone. Mr.Go is said to have made the offer to a former Coinone employee named “Mr.Jeon” in exchange for listing token on the exchange.

The report states that Mr.Go offered token and other gifts to Mr.Jeon in 2020 in exchange for his help in securing the listings. Although Coinone ultimately listed the assets in question, it is unclear whether Jeon’s actions had any influence on the decision.

The investigation into the matter reportedly began as part of a broader probe into market manipulation and collusion within the cryptocurrency industry. While the authorities have not provided further details on the allegations, the case raises concerns about the potential for corruption and fraud in the sector.

News of the incident has caused some concern among investors in the cryptocurrency market, who worry about the impact that such actions could have on the industry’s reputation. While Coinone has not commented on the case, the exchange is likely to face increased scrutiny from regulators and investors alike in the wake of the news.

Coinone is one of the top five cryptocurrency exchanges in South Korea, having been registered as Coinone Inc and launched in 2015. With a 24-hour spot trading volume of $150 million, it is a popular platform for traders in the region. Coinone is backed by Kakao Ventures, a venture capital firm that has invested in a range of tech startups. As a well-established player in the cryptocurrency industry, Coinone is known for its reliable platform and commitment to security and transparency.

Source: https://azcoinnews.com/coinone-broker-arrested-in-south-korea-for-allegedly-offering-kickbacks-in-exchange-for-token-listings.html

#token #Coinone #korean #crypto2023