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Kim Ji-sook – Chief Judge at the Seoul Southern District Court – has reportedly issued an arrest warrant for Kim Mo (leader of the Coinone listing team), broker Hwang Mo, and other executives from the exchange.
Prosecutors alleged that they received billions of won in bribes to include specific cryptocurrencies on the platform.
More Developments in South Korea
According to local media reports, South Korean authorities have detained several employees of Coinone (one of the country’s prominent crypto exchanges). Among those implicated are Kim Mo (the listing team leader) and Hwang Mo (a listing broker).
The magistrates stated that Kim breached the Concealment of Criminal Proceeds Control Act and committed breach of trust by accepting a bribe of one billion won (nearly $760,000) from Hwang to list digital currencies like Pica Coin on the platform. He has reportedly confessed to receiving this amount.
Hwang, on the other hand, has been charged with breach of trust. He allegedly bribed Kim and other Coinone executives, distributing a total of 2 billion won (around $1.5 million).
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The cryptocurrency exchange ranks among the largest in the East Asian nation. Local regulators mandated that South Korean platforms adhere to stricter regulations in 2021, and Coinone was one of the few to successfully complete the registration requirements.
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The country drew attention earlier this week for another incident: a hacking attack on the crypto platform GDAC. As reported by CryptoPotato, cybercriminals compromised its security and stole over $13 million worth of digital assets (23% of its total custodial holdings).
GDAC implemented emergency protocols, halting deposits and withdrawals. It also notified the appropriate law enforcement agencies and sought assistance from competing firms in addressing the troubling situation.
The Do Kwon Case
Domestic authorities appear increasingly committed to tackling crime within the cryptocurrency sector following the alleged flight of Do Kwon, Co-Founder of Terraform Labs, shortly after the collapse of LUNA/UST.
Numerous disgruntled investors and agencies have accused the 31-year-old developer of being the primary instigator behind the negative event and have insisted he must be held accountable for his actions. However, he has been evasive and has reportedly concealed himself in various locations worldwide, including Dubai, Singapore, Russia, and Mauritius.
The arrival notice issued by the South Korean Ministry of Justice, along with Interpol’s involvement in the search, seemed ineffective, as Kwon’s location remained unknown for several months.
Some reports suggested in December of the previous year that he might be hiding in Serbia. Kwon was ultimately apprehended in March at the Podgorica airport (the capital of Montenegro and a neighboring country to Serbia).
U.S. prosecutors swiftly charged him with securities fraud, commodities fraud, and conspiracy following his arrest.
It is still uncertain whether Kwon will face legal proceedings in South Korea or the United States. However, Montenegrin law stipulates that he must remain in a local facility for a minimum of 30 days since his arrest occurred on their territory.
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