The South Korean authorities have detained representatives of two crypto-exchange platforms, as they were suspected of illegal enrichment. It is known that one of the detainees was Mr. Kim Ik-Hwan, a member of the CoinNest exchange. It should be noted that this platform takes a fifth place in terms of trading volumes among South Korean exchanges. Three more people were detained, however authorities have not given detailed information about them.
The detainees are accused of misappropriating and squandering the funds of the exchanges clients. The amounts are calculated in billions of won. Law enforcers believe that employees of the sites brought users’ funds to their accounts and cashed them. Given the scale of the crime, the authorities plan to study the activities and other trading platforms in more detail, where there is a potential for similar violations.
Before carrying out the detention, South Korean law enforcement officers carefully studied the data on ongoing operations and reporting documentation of trading platforms within three weeks. This allowed to detect a number of gross violations, which was the reason for the initialization of investigative actions and the detention of several employees of crypto-exchanges.