June 16, 2021
As the government began to cover up cryptocurrency exchanges, exchanges are starting to ‘clean up job coins’ one after another. After Upbit, ‘Coinbit’, the third largest cryptocurrency exchange in Korea in terms of transaction volume, abruptly announced the delisting of its coins in the middle of the night, raising complaints from investors. According to the cryptocurrency industry on the 16th, Coinbit announced the end of transaction support for 8 types of coins and the designation of 28 types of significant stocks at 10:02 pm on the 15th in a notice titled ‘Virtual asset transaction support related information’. Terminating transaction support means delisting the coin. There are eight coins to be terminated, including LEX (LEX), IO (IO), Pantheon (PTO), UPT, DEX (DEX), Proto (PROTO), Dexter (DXR), and Next (NET). The exact end of the transaction support is at 8:00 PM on the 23rd of this month. Coinbit said, “These virtual assets are only supported with withdrawals as of the current time (10:02 on the 15th).” Withdrawals are possible until June 29th at 8pm. 28 coins, including Metro Road (MEL) and Survey Block (SBC), were designated as important items. Designation of stocks of interest is the pre-stage of delisting. The final transaction review for these coins will be held on the 23rd. Coinbit does not have a real-name bank account, so it is not classified as one of the four largest cryptocurrency exchanges in Korea. However, in terms of transaction size, it is a large exchange that is ahead of Korbit and Coinone, which require real-name account verification. There are about 70 cryptocurrencies in the KRW market traded on Coinbit, and the fact that more than half of them, 36, were delisted or designated as significant stocks is like acknowledging that more than half of them were ‘bad coins’. As has always been the case when cryptocurrency exchanges announcing delisting and designation of significant stocks, Coinbit also explained the background of this decision with vague expressions. In the announcement, Coinbit stated, “It did not meet the internal transaction support screening criteria that evaluate global liquidity such as team capabilities, business communication and technical capabilities.”
Coinbit’s surprise announcement only hurts investors. Many of the coins that were decided to be delisted plummeted by more than 80% on the morning of the 16th compared to 24 hours ago. Coins designated as stocks of concern are also on a sharp decline in sell-off and trading volume. In the context of the decision of Coinbit, the industry is analyzing whether the exchange may have taken the process of cleaning up ‘jobcoins’ in advance to survive in a situation where the government is cleaning up virtual currency exchanges. Coinbit is one of 20 exchanges that have certified the acquisition of the Information Security Management System (ISMS). According to the exchange industry, 11 out of 20 exchanges that have obtained ISMS certification have announced the end of coin trading support (delisting) or designated a coin to be considered for trading since the 28th of last month, when the government-level virtual currency market management plan was announced. Among the exchanges that have taken such measures since May 28, Huobi Korea and Gdac decided to delist coins named after exchanges, such as ‘Huobi Token’ and ‘Gdac Token’, respectively. Huobi Token was issued by Huobi Global, not Huobi Korea, and technically, it is not Huobi Korea’s own issued coin. In the case of Gdak Token, it is a coin issued by Gdak. Exchange Aprobit designated a total of 11 coins, including Bancor (BNT), BZRX (BZRX), and Kyber (KNC), as investment considerations in the KRW market on the 1st of this month, and announced the end of transaction support for these coins 10 days later. did. In addition, Upbit, the No. 1 player in the cryptocurrency exchange industry, designated 25 coins as important items on the 11th and announced the removal of 5 coins from the Korean won market. An exchange official said, “After the announcement of Upbit’s delisting, other exchanges are in an atmosphere that cannot stand still.” . By Nam Jeong-hoon, staff reporter [email protected]
[ⓒ 세계일보 & Segye.com, 무단전재 및 재배포 금지]

Jobcoin Domino delisting…  Investors will pass

Executives of South Korean crypto exchange facing fraud charges
Seoul, South Korea / Image by manu zoli from Pixabay
Wed, 09 Dec 2020, 09:26 am UTC
South Korean authorities have formally pressed charges against three executives of Coinbit, which was once the country’s third-largest cryptocurrency exchange. The company’s chairman and two yet unnamed officers are suspected of price manipulation. Authorities have decided to file charges of fraud and forgery against Coinbit chairman Choi Mo and two unnamed executives, Cointelegraph reported. The announcement was made by the Seoul Metropolitan Police Agency’s 5th Investigation Team, which also recommended the filing of the charges. South Korean prosecutors are already preparing the case against the executives who allegedly participated in market manipulation “on multiple occasions,” according to Bitcoin.com . Police accuse the three of using a “ghost account” to artificially increase transaction volume and manipulate the prices of cryptocurrencies. Korea media outlets, which first reported the news, did not specifically name the Coinbit chairman. As the police investigation is still ongoing, reports simply refer to the top executive as “Mr. A” as required by South Korean law. Authorities accuse the Coinbit chairman and the two executives of engaging in a practice called wash trading. The three people reportedly earned over 100 billion won, which was equivalent to around $84 million at that time, in profits using the scheme. Wash trading is a form of market manipulation where a trader simultaneously buys and sells the same financial asset with the purpose of creating an artificial increase in trading volume, which could mislead other investors that the asset is in greater demand. It is illegal not only in South Korea but also in most jurisdictions. Authorities raided and seized Coinbit’s headquarters in Gangnam-gu and Seoul on August 27. However, Coinbit maintained that the company itself did not engage in anything illegal. “Coinbit has not committed any illegal acts so far and has not been suspended by this time,” the crypto exchange said in a statement made on the same week as the raid. “No one, including Coinbit’s chairman, has been indicted or seized by the police on fraud charges. This case was a personal crime committed by some employees who had joined the company for their financial interests.”
In South Korea, engaging in fraud via unfair trading practices that such as giving inaccurate market prices can carry a prison sentence of between five years to life if the profits gained from the fraudulent activity reach more than 5 billion KRW or $4.46 million.

Executives of South Korean crypto exchange facing fraud charges

Police have charged Coinbit chairman Choi Mo and two unnamed executives with fraud and forgery related to market manipulation and prosecutors are preparing the case. 1041 Total views
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South Korean authorities have charged executives of what was once the country’s third-largest cryptocurrency exchange, Coinbit, over market manipulation allegations. According to news outlet News1, prosecutors are preparing a case against Coinbit chairman Choi Mo and two unnamed executives on charges of fraud and forgery connected to market manipulation following a recommendation from the Seoul Metropolitan Police Agency. The police said that the three allegedly used ghost accounts from August 2019 to May 2020 to inflate transaction volumes and manipulate token prices on the exchange. The police searched and confiscated a number of properties associated with Coinbit in a series of August raids. At that time, authorities estimated that 99% of the exchange's volume had been faked by wash trading Bitcoin ( BTC ) and other cryptocurrencies and that those responsible for the exchange’s fraudulent activities had netted more than $84 million. An investigation from news outlet Seoul Shinmun in August alleged that Coinbit showed no corresponding deposit and withdrawal details for major cryptocurrency transactions, and had blocked transactions with other exchanges. This allegedly allowed the Coinbit chairman and others to manipulate the market by buying and selling large quantities of tokens at certain times. According to Thomas Reuters Practical Law, engaging in fraud in South Korea using unfair trading practices such as providing inaccurate market prices can result in a prison term from anywhere between five years to life if profits gained through the fraud are more than 5 billion KRW — roughly $4.6 million at the time of writing. In addition, the guilty parties can be fined “up to the amount of profit gained.”

Execs from '99% fake' exchange face charges over market manipulation

The Seoul Metropolitan Police Agency has officially brought charges against the chairman of local crypto exchange, Coinbit and two other unnamed executives for manipulating the digital currency market, local media Newspim reported. The city police are saying that the top exchange executives manipulated the cryptocurrency prices on the exchange from August 2019 to May 2020. The South Korean authorities first moved against Coinbit in August when the local police reportedly raided and seized the operations of the exchange. The allegations on the exchange include inflating its trading volume by up to 99 percent. Such practice of wash trading is common in the cryptocurrency market as a Bitwise pitch to the US Securities and Exchange Commission (SEC) last year highlighted that 95 percent of all Bitcoin trading activities were fake . However, later reports have significantly downplayed that number. Suggested articles
In wash trading, the exchanges buy and sell digital currencies at the same time, thus creating fake volume on the platforms to attract traders. Crackdown on the Crypto Industry
Coinbit is the third-largest cryptocurrency exchange in South Korea with around 252,000 active monthly users. These alleged illegal activities have earned the exchange at least 100 billion won (about $84 million). Some local media earlier reported 99 percent discrepancies on the books of Coinbit and the reported volumes, which revealed that one third-party accounting firm refused to work with the exchange after reviewing its books. Furthermore, the South Korean authorities are investigating other major local exchanges for fraud. The police seized the operations of Bithumb , the country’s largest digital currency exchange, multiple times and summoned its chairman for investigating fraud charges involving tens of millions of dollars. Share this article

Seoul Police Indicted Coinbit Executives for Market Manipulation

In South Korea, authorities have formally pressed fraud charges against the chairman of a major crypto exchange in the country, Coinbit, plus two unnamed executives of the firm. They are suspected of price manipulation. Coinbit’s Executives Formally Charged by South Korean Authorities
According to Newspim , the 5th Investigation Team of the Seoul Metropolitan Police Agency made the official announcement. The same local media outlet quoted the country’s prosecutors, who are preparing themselves for the case, as they believe the executives participated in market manipulation “on multiple occasions.”
Among the charges, the prosecution included forgery of records and fraud. As the investigation is still ongoing, South Korean law requires that media outlets still refer to Coinbit’s chairman as “Mr. A.”
Police believe that from August 2019 to May 2020, all three executives allegedly used a “ghost account” to inflate the transaction volume to manipulate coins’ prices. Alleged ‘Wash Trading’
As previously reported by news.Bitcoin.com, “wash trading” allowed the three people involved in the scheme to earn over 100 billion won ($84 million at that time) in profits fraudulently. Wash trading is a form of market manipulation in which an investor simultaneously sells and buys the same financial asset to create misleading, artificial activity in the marketplace. It is illegal in most jurisdictions, including South Korea, and it also applies to the crypto market. Back on Aug. 27, South Korean police raided and seized the headquarters of Coinbit in Gangnam-gu and Seoul. However, in a statement sent during that same week of the raid to news.Bitcoin.com, Coinbit clarified its legal status in this matter:
Coinbit has not committed any illegal acts so far and has not been suspended by this time. No one, including Coinbit’s chairman, has been indicted or seized by the police on fraud charges. This case was a personal crime committed by some employees who had joined the company for their financial interests. As of press time, a date has not been set for the future trials that the three accused executives must appear before a judge. Do you believe this case will hurt the South Korean crypto industry? Let us know in the comments section below. Tags in this story
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South Korean Authorities Formally File Fraud Charges Against Coinbit’s Executives

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Coinbit provides a cryptocurrency trading platform and is based in Seoul, South Korea.

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