A South Korean court has sentenced the former CEO of the defunct crypto exchange Coinnest to 18 months in prison. The court also fined him over $61,000, who also was charged for fraud in 2020.
Prosecutors Accused Coinnest Executives of Receiving 110 BTC in Bribes
The investigation unveiled that he and other executives received almost $771,270 worth of BTC (at the time) for arranging the listing of an unnamed altcoin â€” referred to by the court as â€œSâ€� coin.
However, the former Coinnest CEO and its former operating director, Jo Mo, claimed there was â€œno unfair solicitation.â€� The prosecutors commented in the first trial:
The defendants acknowledged or promoted the situation that they were taking unreasonable gains by manipulating the market price on the exchange after listing the cryptocurrency. (â€¦) This crime greatly undermined fairness and trust in cryptocurrency transactions. This is bad.
Although the Supreme Court, chaired by judge Noh Jeong-hee, didnâ€™t reveal details on the â€œSâ€� coin, prosecutors said the altcoin was issued by K Group.
The prosecution also accused Coinnestâ€™s executives of receiving 110 BTC in bribes for the purpose. Jo Moâ€™s sentence is still pending confirmation by the Supreme Court.
Former Coinnestâ€™s CEO Court History
The former CEO of the now-defunct crypto exchange has additional sentences on his CV. Alongside two unnamed executives, Kim was found guilty in February 2020 of fraud and embezzlement.
A South Korean court gave him a three-year prison sentence, but it was suspended for four years. Moreover, the appeals court sentenced Kim to pay a $2.5 million won fine, and also to serve 100 hours of community service.
The judge ruled that Kim and the other executives misappropriated â€œbillionsâ€� of won, transferring client funds to employee accounts. At that time, the executives denied any wrongdoings.
Coinnest closed its crypto exchange operations in April 2019.
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