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CEO jailed for 18 months for accepting Bitcoin bribes to list cryptocurrencies

A South Korean court has announced the sentence of 18 months in prison for the former CEO of Coinnest, a cryptocurrency exchange that has terminated trading. The court also fined him more than $61,000, and the latter was also charged with fraud in 2020.

Prosecutors accuse top executives of taking bribes 110 BTC

According to Fn News, the South Korean Supreme Court ruled that Kim Ik-hwan should spend his time in prison because the authorities had previously sued him for accepting Bitcoin (BTC) bribes in 2018.

The investigation revealed that he and other executives received nearly $771,270 worth of Bitcoin (at the time) because it arranged the listing of an unnamed altcoin-the court referred to it as the “S” coin.

However, the former CEO of Coinnest and his former director of operations Jo Mo claimed that “there are no unfair demands.” The prosecutor stated in the first trial:

The defendants admitted or contributed to the situation that they manipulated the market price of the exchange to obtain unreasonable returns after the cryptocurrency was listed. (…) This crime has greatly undermined the fairness and trust in cryptocurrency transactions. This is not good.

Although the Supreme Court chaired by Judge Zheng Zhengxi did not disclose the details of the “S” coin, the prosecutor stated that the altcoin was issued by the K Group.

The prosecutors also accused Coinnest executives of accepting bribes of 110 BTC for this purpose. Jo Mo’s judgment is still awaiting confirmation by the Supreme Court.

Court history of the former Coinnest CEO

The former CEO of the now-defunct cryptocurrency exchange has other sentences on his resume. Along with two executives who did not want to be named, King was convicted of fraud and embezzlement in February 2020.

A South Korean court sentenced him to three years in prison, but he was sentenced to four years suspended. In addition, the Court of Appeal sentenced Kim Jong Il to pay a fine of 2.5 million won and provide 100 hours of community service.

The judge ruled that Kim and other executives misappropriated “billions of won” to transfer client funds into employee accounts. At the time, the executive denied any wrongdoing.

Coinnest closed its cryptocurrency exchange business in April 2019.

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Picture Credits: Shutterstock, Pixabay, Wiki Commons

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