In a shocking development, a former high-ranking official at Coinone, a leading South Korean cryptocurrency exchange, has been accused of accepting bribes to list certain cryptocurrencies on the platform. This scandal has sent ripples through the South Korean crypto industry, which is known for its significant market size and high level of crypto adoption.
The executive, identified as Jeon, is alleged to have accepted bribes amounting to approximately 2 billion Korean won (around $1.5 million) between 2020 and 2022. The bribes were reportedly in exchange for listing certain cryptocurrencies on Coinone, some of which were susceptible to market price manipulation.
Prosecutors allege that some of the tokens involved in the scandal were associated with companies known for manipulating cryptocurrency prices. Local cryptocurrencies reportedly involved in the scheme include Pica Coin and Puriever.
Jeon’s case was brought before the Seoul Southern District Court following his arrest on bribery charges on March 22. While Jeon and his broker, Koh, have acknowledged the accusations, they have refrained from formally admitting guilt until they have reviewed all the evidence.
Another former Coinone employee, Kim, and their broker, Hwang, have also been implicated in the case. However, they have yet to respond to the charges brought against them. It is alleged that Kim received $784,000 for their involvement in the illicit activities.
The trial for the four defendants is set to commence on June 15. The scandal has raised serious concerns about market integrity and the trust investors place in cryptocurrency exchanges.
This incident comes at a time when South Korea’s cryptocurrency market, one of the largest globally, is under increased scrutiny. In response to the scandal, South Korean prosecutors are broadening their investigation to other local exchanges to uncover any additional evidence of cryptocurrency listing manipulations in the broader market.