A South Korean court docket has sentenced the previous CEO of the defunct crypto alternate Coinnest to 18 months in jail. The court docket additionally fined him over $61,000, who additionally was charged for fraud in 2020.

Prosecutors Accused Coinnest Executives of Receiving 110 BTC in Bribes

In accordance with Fn Information, the Supreme Court docket of Korea decided that Kim Ik-hwan ought to spend time in jail, because the authorities beforehand indicted him in 2018 for accepting bitcoin (BTC) bribes.

The investigation unveiled that he and different executives obtained virtually $771,270 price of BTC (on the time) for arranging the itemizing of an unnamed altcoin — referred to by the court docket as “S” coin.

Nevertheless, the previous Coinnest CEO and its former working director, Jo Mo, claimed there was “no unfair solicitation.” The prosecutors commented within the first trial:

The defendants acknowledged or promoted the scenario that they have been taking unreasonable beneficial properties by manipulating the market worth on the alternate after itemizing the cryptocurrency. (…) This crime drastically undermined equity and belief in cryptocurrency transactions. That is unhealthy.

Though the Supreme Court docket, chaired by decide Noh Jeong-hee, didn’t reveal particulars on the “S” coin, prosecutors stated the altcoin was issued by Ok Group.

The prosecution additionally accused Coinnest’s executives of receiving 110 BTC in bribes for the aim. Jo Mo’s sentence remains to be pending affirmation by the Supreme Court docket.

Former Coinnest’s CEO Court docket Historical past

The previous CEO of the now-defunct crypto alternate has extra sentences on his CV. Alongside two unnamed executives, Kim was discovered responsible in February 2020 of fraud and embezzlement.

A South Korean court docket gave him a three-year jail sentence, nevertheless it was suspended for 4 years. Furthermore, the appeals court docket sentenced Kim to pay a $2.5 million gained tremendous, and in addition to serve 100 hours of group service.

The decide dominated that Kim and the opposite executives misappropriated “billions” of gained, transferring consumer funds to worker accounts. At the moment, the executives denied any wrongdoings.

Coinnest closed its crypto alternate operations in April 2019.

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