Ex-Coinone Exchange Officer Arrested for Crypto Bribery Scandal by CoinEdition

by Arthur · March 23, 2023

Ex Coinone official arrested for taking KRW 1.9B for digital currency listing.
Bithumb CEO under investigation for similar bribery allegations.
The cryptocurrency industry in South Korea needs more transparency and regulation due to fraud, hacking and other issues.

South Korean authorities have arrested a former employee of the Coinone exchange, who was allegedly involved in a bribery scandal involving cryptocurrency listings. The person, identified only as Jeon, allegedly received KRW 1.9 billion (about $1.47 million) from a broker to ensure that a particular digital currency was listed on the Coinone trading platform.

Due to privacy rules, Seoul prosecutors confirmed that Jeon was arrested, but declined to reveal his full name. However, authorities have said they are also investigating Lee Sang-jun, CEO of Bithumb, the country’s second-largest cryptocurrency exchange, on similar allegations. While prosecutors have yet to seek an arrest warrant for Lee, the investigation could expand to cover other local crypto exchanges.

News of the bribery scandal has sent shockwaves throughout the South Korean cryptocurrency industry, which has been under scrutiny for alleged irregularities in recent years. However, Coinone, one of the country’s largest cryptocurrency exchanges, has yet to comment on the arrest.

The arrest of the former Coinone employee marks a significant development in the investigation into the alleged bribery scandal, which has raised concerns about the integrity of cryptocurrency listings in South Korea. The case is expected to have far-reaching implications for the country’s digital currency industry, and authorities have indicated they will continue to investigate irregularities in the sector.

The bribery scandal involving cryptocurrency listings is just the latest problem to hit the South Korean cryptocurrency industry, which has struggled with fraud, hacking and other problems. In 2017, the country’s financial regulator banned initial coin offerings (ICOs) and imposed strict rules on cryptocurrency trading to curb the potential for fraud and money laundering.

The arrest of the former Coinone employee and the investigation of Lee Sang-jun, CEO of Bithumb, have put the spotlight on the need for greater transparency and regulation in the South Korean cryptocurrency industry.

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