Crypto Exchange Execs In South Korea Arrested Over Alleged Embezzlement

Crime, News | April 6, 2018 By:

South Korean police have arrested four executives from two domestic cryptocurrency exchanges for allegedly embezzling funds belonging to customers.

According to police officials, Kim Ik-hwan, co-founder and CEO of cryptocurrency exchange Coinnest, and the other three suspects were detained on Thursday. The identities of the other executives and the other exchange have not been made public. 


Crypto Exchanges In South Korea Ordered To Revise Customer Contracts

News, Regulation | April 5, 2018 By:

The South Korean Fair Trade Commission (FTC), the country’s regulatory authority for economic competition, has ordered 12 local cryptocurrency exchanges to revise their adhesion contracts to provide better protection to consumers.

According to the FTC, existing guidelines unfairly bar users from withdrawing their deposits or limit their services to users and force users to shoulder all financial losses when they end their membership with the crypto exchange.


South Korean Police Arrest 14 For Illegally Mining Bitcoin Using Cheap Factory Power

Crime, News | April 3, 2018 By:

South Korean authorities have arrested 14 people from 13 different companies for illegally using cheap electricity to mine cryptocurrencies at industrial complexes.

According to the metropolitan police agency of Gwangju, the country’s southwestern city, the unnamed companies allegedly carried out the illegal mining activities across four different complexes in the city.


Crypto Exchange Upbit Offers Reward For Reporting Fraudulent Crypto Schemes

News | March 29, 2018 By:

South Korean cryptocurrency exchange Upbit has launched a program to reward users for identifying fraudulent multi-level cryptocurrency schemes and initial coin offerings (ICO).

Upbit, which is backed by South Korean chat giant Kakao, said that the number of illegal multi-level and Ponzi fraud cases has been increasing and its new system will attempt to “prevent damage due to fraud.” It is encouraging its users to participate in the new reward program in order to create a sound cryptocurrency ecosystem.


South Korea Cryptocurrency Crackdown: Regulators To Investigate Banks Over AML Measures

News, Regulation | March 23, 2018 By:

South Korea’s financial regulators will reportedly investigate domestic banks over their implementation of anti-money laundering procedures for cryptocurrency exchanges.

According to local news outlet Yonhap News, the Financial Intelligence Unit (KoFIU) and the Financial Supervisory Commission (FSC) will jointly carry out inspections starting next month at banks offering corporate accounts to cryptocurrency exchanges.


Cryptocurrency Exchanges Raided By South Korean Authorities

News, Regulation | March 16, 2018 By:

The Seoul Southern District Prosecutors’ Office reportedly searched the offices of three cryptocurrency exchanges suspected of buying bitcoin with money stolen from customers’ accounts.

According to local publication Chosun, allegations of embezzlement by staff prompted the raids, with certain staff and executives being suspected of using money from customer accounts in order to buy cryptocurrencies from other exchanges.