Korean Crypto Staff Charged With Coin Listing Fraud
With information from The JoongAng, a local media, on May 22, 2023, it was established that Mr. Jeon, Mr. Kim, Mr. Ko and Mr. Hwang, employees of Coinone, a South Korean crypto exchange, were convicted of using unfair means. to earn more than 2.98 billion Korean won, or about $2.26 million during coin listings of different projects. It is expected that around 46 coins were included in this incident and it lasted from November 2019 to December 2022, Cointelegraph said. Some believe that around 25% of all tokens were listed on Coinone.
Sources have revealed that Coinone executives and staff members are required to sign a Market Making Agreement (MM) through brokers before listing a coin. However, users of the contract created an artificial increase in trading volume and rates through cross-trading, which was illegal, Cointelegraph pointed out.
Further, regarding the incident, “These price manipulations cause misunderstandings about the trading volume and market price among the general members of the exchange, and prompt them to participate in the coin transaction and buy room,” prosecutors told Cointelegraph.
(With information from Cointelegraph)
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