Coinnest Heads Accused for Accepting Bribe

As reported, they received 1 billion won (~US$890,000) worth of cryptocurrencies to push coin for a listing 
25 September 2018   291

Prosecutors of the Southern District of Seoul accused two executives of the South Korean exchange Coinnest of taking bribes in exchange for a coin listing. This is reported by with reference to local media.

According to local media resources, executive and operational directors of Coinnest's crypto-exchange were given bribes totaling 1 billion yen (approximately $ 890,000). The main cryptocurrency, figuring in the case, was bitcoin.

The bribe was transferred by representatives of the project, wishing to "push through" the Coinnest listing so-called S-coin. The project director was also charged.

It is known that the first part of the bribe, in the amount of $ 771.2 thousand representatives of Coinnest received in the period from 5 to 6 February. Later on, 2 million S-coin coins worth $ 125,500 were transferred to their account.

According to the accusing party, the fact of receiving a bribe from Coinnest is reinforced by the lack of procedures for studying the technical features of S-coin before its inclusion in the listing.

The incident with S-coin isn't the first for Coinnest. In April 2018, the representatives of the exchange were accused of "breaking the law on special economic crimes, including fraud." The reason was the alleged sale of non-existent coins.

Earlier, according to the results of the inspection of all the South Korean currency-exchange exchanges, it was revealed that the regulators' requirements exceeded half of the existing sites. Among them was Coinnest.

Binance to Partner with Chainalysis for AML

Use of Chainalysis KYT solution will allow to compile with KYC- and AML-norms and also simplify the process of opening bank accounts
18 October 2018   96

The largest exchange by daily trading volume Binance uses software from Chainalysis, called Chainalysis KYT [know your transaction], to monitor real-time transactions and identify transfers related to criminal activity. This is stated in a joint press release.

Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance's lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.

Jonathan Levin

Co-Founder and COO, Chainalysis

Thus, the use of software from Chainalysis not only guarantee compliance with the KYC- and AML-norms, but also simplify the process of opening bank accounts.

By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.

Wei Zhou

CFO, Binance

Chainalysis KYT release was held in April.