- They are charged with market-making and illegal enrichment
- The defendants in the case demanded money for placing tokens on the platform
- Bypassing the requirements on the exchange got at least 46 “coins”
- This is a quarter of the total supply of Coinone
We previously reported that several employees of the South Korean exchange Coinone were taken into custody. On Sunday, May 21, local media reported that four defendants in the case were charged with illegal enrichment.
Under the control of the authorities hit two executives and two company brokers. In particular, this is the previously mentioned head of the listing department at Coinone, Kim Mo.
According to law enforcement, the defendants received a total of 2.98 billion won ($2.26 million) in kickbacks for helping them list certain assets. In total, 46 tokens entered the exchange in this way, a quarter of the entire list of “coins” on Coinone.
In addition, the defendants in the case persuaded the project management to sign a contract with a market maker, unfortunately unnamed. He “pumped up” the volume of trading through cross-trades, “heating up” the demand for the token.
Those who did not agree to such conditions were threatened with the delisting of the project. Thus, the defendants misled the clients of the exchange regarding the real activity on certain positions, stimulating sales.
It is not known if the company will also be charged. Coinone is a fairly large exchange in South Korea with a daily trading volume of over $27 million.