In South Korea, a former high-ranking Coinone executive has been sentenced to four years in prison for accepting bribes to list alternative cryptocurrencies. This verdict follows a Newsis report.
The individual, Jeon, 41 years old, formerly held the position of general director for coin listings at Coinone, a major South Korean cryptocurrency exchange.
Furthermore, Kim, aged 31 and the manager of Coinone’s listing team, got a three-year prison term. Two crypto “brokers” in the case also received sentences: one got 2.5 years, and the other got 1.5 years. Their charges were linked to breaches of trust.
South Korea Crypto Crackdown: Fines, Collusion, and Regulatory Reforms
Jeon was fined $1.4 million. Kim, on the other hand, received a $600,000 fine. The court found that the altcoins were listed with the goal of inflating their prices artificially.
During the trial, Kim denied intending collusion with Jeon and pleaded ignorance regarding price manipulation. The judge, however, deemed it reasonable to assume Kim was aware that listing these coins would cause market manipulation and widespread trading.
The judge emphasized that employees handling coin listings should uphold high standards of compliance and integrity. This case underscored the importance of rigorous oversight and management in cryptocurrency exchange listing processes, as overseen by regulators.
Prosecutors showed that Kim tried to destroy evidence several times during the investigation. They also presented evidence of Jeon and Kim receiving cryptocurrency and cash payments from brokers between 2020 and 2022.
This sentencing is part of South Korea’s wider crackdown on crypto price manipulation, with Bithumb exchange executives also facing similar allegations in a separate investigation.
Earlier this month, the city of Busan, South Korea’s second-largest city, announced plans to launch a digital assets trading platform by the end of the year. Originally, the platform had intentions of listing cryptocurrencies. However, it has now scaled back its plans. Instead, it will concentrate on trading digitized commodities and tokenized intellectual property rights.
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