South Korean exchange Coinone execs indicted in paid listing, market manipulation scandal
JoongAng Newspaper reports that four people have been accused of being linked to the listing scandal of South Korean cryptocurrency exchange Coinone. May 21st.
2 Executives and 2 Brokers Charged
According to the prosecution, both Coinone listing team leader Kim Mo and Coinone listing broker Huang Mo were indicted. Two other people were also charged.
Coinone’s former CGO, Jeon Mo-ssi, was also investigated three times in March and April, but it is unclear if he has been charged.
Coinone executives have accepted payments to list at least 46 cryptocurrencies currently available on the exchange. That number represents 25% of all cryptocurrencies listed on Coinone, but prosecutors say the figure could rise further as the investigation progresses.
Coinone members received a total of 2.98 billion won ($2.27 million) in exchange for the listing of related cryptocurrencies.
Coinone involved in market manipulation
In addition to demanding payment from parties seeking to list their coins, Coinone encouraged some parties to facilitate market manipulation.
Coinone executives reportedly encouraged listed parties to sign a contract that forced them to submit orders through a market-making firm. Market makers then manipulated prices and fraudulently increased trading volumes through cross trading. In exchange for signing these agreements, Coinone has waived listing security deposits for listed parties.
Prosecutors said the market manipulation misled exchange users about the volume and price of related cryptocurrencies.
Officials said they have never filed fraud cases against private investors related to illegal market making in the cryptocurrency market.
It first appeared on CryptoSlate after South Korean exchange Coinone executives were indicted in a paid listing, market manipulation scandal.