South Korean Coinnest Exchange Announces Project Completion
Coinnest, a South Korean crypto platform, on the official website announced its closure.
It is reported that trading operations will be completed on April 30, and withdrawals will be available until July 30. Such a decision was made after the platform has failed to cope with changes in the digital assets and distributed ledger technologies industry, representatives of the exchange noted.
Crypto experts from South Korea have suggested that the management of the exchange decided to curtail the project because of the litigation against them. In 2018, the founders of the project were accused of demanding money for adding assets to the cryptocurrency listing of the exchange.
Then local media reported that the executive and operating director of the crypto platform received bribes totaling about $890,000 in bitcoins and other assets. The money was transferred to the project representatives who wanted to add the S-coin token to the listing.
In January 2019, a system crash caused the exchange to transfer approximately $5.3 million in digital assets to its customers, after which it appealed to users to transfer the money back. Besides cryptocurrencies, some users received funds in fiat.
This incident also caused the collapse of the cost of bitcoin, which fell by $50 in a few hours. At that moment, the exchange stopped all withdrawal operations.
As previously reported, a subsidiary of the South Korean corporation Kakao Corp announced the launch of a platform for blockchain startups.