South Korea, already dubbed “Kingdom Of Crypto” worldwide.
Whenever we discuss or think of crypto, , digital currency, exchanges, etc., South Korea is always a vital player that is mentioned frequently. Recently, the noise surrounding the major Korean crypto exchanges has begun to be heard from afar, becoming more incessant since the start of the long term bear market, which started back in early 2018. To be completely frank, these ‘top tier’ crypto exchanges in Korea are slowly crashing down.
In the first official criminal case related to a crypto exchange in Korea, Coinnest, one of the top tier exchange that had a frequent top spot for volume, was charged and investigated by the prosecution of Korea for fraud, resulting in Coinnest being torn apart and disappearing.
“All of the lost passwords will be recovered by the company, and all of the members’ assets are kept in safe cold wallets,”. Even though they continuously stressed that there is no damage to its users directly, and those damages were being solved effectively, it shows us that they have full confidence without solid reasons to back it up.
This case was not the first where users’ assets were hacked. Back in June 2017 one of the officials of Bithumb who stored the private information of users themselves was hacked, resulting in 36000 users’ information being made publicly available on the internet.
Experts criticized the behavior of Bithumb, stating that they should not extremely confidential information of users on their server. They should be encrypting and storing offline. This case shows the real apparent lack of information management, which is extremely alarming.
UPbit backed by the largest IM service company, Kakaotalk, has also been in trouble. Three of UPbit’s major shareholders were indicted on December 21, last year, with charges of illegally manipulating the price of . They finally confessed that they were using bots, and the volume was manipulated by them.
Korea’s top-tier exchanges who boasted about being the leading exchanges were faking their billions in volume, and as a result, fell like dominos, one by one.
Published at Wed, 20 Mar 2019 08:09:27 +0000
