With insights from The JoongAng, a local news outlet, on May 22, 2023, it was founded that Mr Jeon, Mr Kim, Mr Ko and Mr Hwang, employees, Coinone, a South Korean crypto exchange, were held guilty of using unfair ways to gain over 2.98 billion Korean Won amounting to about $2.26 million during coin listings from different projects. It is expected that about 46 coins were included in this incident and it lasted from November 2019 to December 2022, stated Cointelegraph. Some believe about 25% of all tokens were listed on Coinone.
Sources revealed that Coinone executives and staff members needed to sign a market-making (MM) contract through brokers before listing a coin. However, the contract’s users created artificial boosting trading volume and rates through cross-trading, which was illegal, Cointelegraph highlighted.
Furthermore, in relation to the incident “These price manipulation causes misunderstandings about the trading volume and market price among general members of the exchange, and induces them to participate in the coin transaction and buy the coin,” the Prosecutors told Cointelegraph.
(With insights from Cointelegraph)