A South Korean court has sentenced the former CEO of the defunct crypto exchange Coinnest to 18 months in prison. The court also fined him more than $ 61,000, which was also charged with fraud in 2020.
Prosecutors charged Coinnest Executives with receiving 110 BTC in bribes
The investigation revealed that he and other executives received nearly $ 771,270 in cash BTC (at the time) for arranging the listing of an unnamed altcoin – referred to by the court as an “S” coin.
However, the former CEO of Coinnest and his former CEO, Jo Mo, claimed there were “no unfair requests”. Prosecutors noted during the first trial:
The defendants acknowledged or promoted the situation that they were making unreasonable profits by manipulating the market price on the exchange after they listed the cryptocurrency. (…) This crime has severely undermined the fairness and trust of cryptocurrency transactions. This is bad.
Although the Supreme Court, chaired by Judge Noh Jeong-hee, did not reveal details about the “S” coin, prosecutors said the altcoin was issued by K Group.
The prosecution also accused Coinnest executives of receiving 110 BTC in bribes for this purpose. Jo Mo’s verdict is still pending confirmation by the Supreme Court.
Former Coinnest CEO Court History
The former CEO of the now-defunct crypto exchange has extra sentences on his resume. In addition to two unnamed executives was Kim found guilty in February 2020 of fraud and embezzlement.
A South Korean court sentenced him to three years in prison, but he was given a four-year reprieve. In addition, the appeals court sentenced Kim to pay a $ 2.5 million fine, as well as 100 hours of community service.
The judge ruled that Kim and the other executives had embezzled “billions” of money by transferring customers’ money to employee accounts. At that point, the executives denied all wrongs.
Coinnest closed its crypto exchange business in April 2019.
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