A South Korean court docket has sentenced the previous CEO of the defunct crypto trade Coinnest to 18 months in jail. The court docket additionally fined him over $61,000, who additionally was charged for fraud in 2020.
Prosecutors Accused Coinnest Executives of Receiving 110 BTC in Bribes
The investigation unveiled that he and different executives obtained nearly $771,270 value of BTC (on the time) for arranging the itemizing of an unnamed altcoin — referred to by the court docket as “S” coin.
Nevertheless, the previous Coinnest CEO and its former working director, Jo Mo, claimed there was “no unfair solicitation.” The prosecutors commented within the first trial:
The defendants acknowledged or promoted the scenario that they had been taking unreasonable positive factors by manipulating the market worth on the trade after itemizing the cryptocurrency. (…) This crime enormously undermined equity and belief in cryptocurrency transactions. That is dangerous.
Though the Supreme Courtroom, chaired by choose Noh Jeong-hee, didn’t reveal particulars on the “S” coin, prosecutors mentioned the altcoin was issued by Okay Group.
The prosecution additionally accused Coinnest’s executives of receiving 110 BTC in bribes for the aim. Jo Mo’s sentence remains to be pending affirmation by the Supreme Courtroom.
Former Coinnest’s CEO Courtroom Historical past
The previous CEO of the now-defunct crypto trade has further sentences on his CV. Alongside two unnamed executives, Kim was found guilty in February 2020 of fraud and embezzlement.
A South Korean court docket gave him a three-year jail sentence, nevertheless it was suspended for 4 years. Furthermore, the appeals court docket sentenced Kim to pay a $2.5 million gained tremendous, and in addition to serve 100 hours of group service.
The choose dominated that Kim and the opposite executives misappropriated “billions” of gained, transferring consumer funds to worker accounts. At the moment, the executives denied any wrongdoings.
Coinnest closed its crypto trade operations in April 2019.
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