​Korean cryptocurrency exchange boss arrested for fraud

South Korean prosecutors have arrested the boss of cryptocurrency exchange Coinnest for embezzlement and fraud.

South Korean prosecutors have arrested the CEO of local cryptocurrency exchange Coinnest.

CEO Kim Ik-hwan and a senior executive of the same firm were arrested for fraud and embezzlement. Prosecutors believe the executives siphoned funds out of customer accounts into their own.

Investigators are reportedly investigating another exchange also under suspicion of criminal activity.

The arrest follows the prosecutors' raid last month of three cryptocurrency exchanges at Yeouido, South Korea's equivalent of the US' Wall Street.

Korean authorities began investigations into digital currency exchanges early this year following the passing of regulations that demanded more transparency in dealings.

The Blue House, Korea's equivalent to the US White House, said the country will seek to increase transparency in cryptocurrency trading by stamping out illegal activities.

The nation will prioritize transparency in trading of virtual currency within the boundaries of the current law, and block illegal and unfair activities, but it stopped short of banning trading.

The government also vowed more scrutiny, and a separate raid on exchanges followed in January.

Coinnest is thought to be the fifth-largest exchange based on trading volume in South Korea.

Cryptocurrencies and blockchain are a hot trend in Asia. Korean chat giants Kakao and Line have recently formed blockchain subsidiaries.

PREVIOUS AND RELATED COVERAGE

South Korea seeks transparency, rules out cryptocurrency trading ban

The notion that the Chinese government would spy on corporations and our agencies with electronic devices manufactured by Chinese companies is not only absurd but would be catastrophic to furthering their ambitions in world trade.

Monex confirms interest in acquiring hacked cryptocurrency exchange Coincheck

Regulators would likely be very interested in a potential buyout due to a hack leading to over $500 million in lost funds.

Ransomware: Why the crooks are ditching bitcoin and where they are going next

The popularity of bitcoin is creating problems for criminals dealing in ransomware -- and some are already casting their gaze towards a less volatile cryptocurrency.

Cyber attackers are cashing in on cryptocurrency mining - but here's why they're avoiding bitcoin

Cryptocurrency mining malware has emerged as a key method of criminal hackers making money - so why aren't they targeting the most valuable blockchain-based currency of them all?

Report: Cryptojacking exploded 8,500% in 2017 as Bitcoin gained value (TechRepublic)

Security provider Symantec said that nearly a quarter of the attacks it blocked in December 2017 were related to cryptojacking.

Newsletters

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
See All
See All