Bitcoin, Blockchain & Cryptocurrency News

Employee Embezzlement Forces South Korea’s Coinbin Crypto Exchange to Call it Quits

Coinbin, a leading South Korean digital assets exchange and cryptocurrency trading venue, has filed for bankruptcy with the Korean authorities, claiming that an employee has stolen a whopping 29.3 billion won (about $26 million) from its coffers, according to a local news source, Business Korea on February 22, 2019.

Coinbin Exchange Sees Red

At a time when a significant number of bitcoin-linked businesses are shutting down operations due to unfavorable market condition, the case of South Korea’s Coinbin exchange appears to be entirely different.

Per sources close to the matter, the exchange is planning to file for bankruptcy with the nation’s financial authorities, as it can no longer continue normal operations.

Interestingly, Coinbin has revealed to local sources that one of its top executives has stolen roughly 29.3 billion Korean won ($26 million) from its vaults, making it impossible for the firm to function optimally.

Commenting on the sad development, Park Chan-kyu, CEO of Coinbin, reportedly said that:

“We are looking to file for bankruptcy due to a rise in debt brought about by an employee’s embezzlement.”

Accordingly, the firm is said to have put all cryptocurrency and cash withdrawals on hold since February 20, 2019, and will soon begin settling users under local bankruptcy procedures.

Who Stole the Cryptos?

Although specific names were not mentioned, Park has however hinted that the perpetrator of the crime, once functioned as the CEO of Youbit, the crypto exchange reportedly acquired by Coinbin after the former suffered a hack of 17 billion won in 2017.

According to Coinbin, the missing 29.3 billion won also includes the funds which had been set aside for the compensation of former members of Youbit exchange.

The executive, whose duties includes managing cryptocurrencies at Coinbin, reportedly claimed to have misplaced the private keys to the firm’s cryptocurrency wallets containing hundreds of bitcoin (BTC) and ether (ETH).

However, Park strongly believes that those claims are far from the truth, as the executive is a seasoned crypto expert.

Nothing New

It’s worth noting that this is not the first time that top executives at crypto exchanges are being called out for fraudulent activities.

In May 2018, BTCManager informed that investigators from the Korean Financial Intelligence Unit (KIU) and the Financial Services Commission (FSC) had raided the premises of UPbit cryptocurrency exchange due to suspicious trading activities carried out by executives of the firm.

Published by
Ogwu Osaemezu Emmanuel

Recent Posts

Alpha Version of Cardano’s Smart Contract Programming Language, Marlowe, Is Out

The Alpha version of Marlowe, a domain-specific language (DSL) for Cardano, is out as per a notice…

24 mins ago

Research: Investors’ Interest in Bitcoin (BTC) has Surged in 2020 Amid COVID-19 Crisis

Grayscale’s latest “Bitcoin Investor Study” has shown that the number of people interested in pumping…

1 hour ago

IOST Will Anchor and Lead the Digital Economy

As the coronavirus force central banks and businesses to adapt to present realities, the Internet…

2 hours ago

PlanetWatch Partners with Algorand to Launch Air Quality Ledger Solution

French startup firm PlanetWatch has revealed its partnership with Algorand blockchain to build a global…

3 hours ago

TomoChain Acquires German Enterprise Blockchain Lition

Singapore, October 28th -- Singapore-based smart contract platform TomoChain has acquired Lition, developer of a…

5 hours ago

Singapore’s Largest Bank Teases Cryptocurrency Trading Platform

DBS Bank, Singapore’s largest banks and one of the biggest banks in Asia is reportedly…

5 hours ago

This website uses cookies.