Korean CoinNest exchange CEO detained for fraud

South Korean media reported today that CEO of CoinNest (South Korean-based cryptocurrency exchange) has been  imprisoned for embezzlement and swindle
05 April 2018   698

According to the information by South Korea’s Seoul District Prosecutors’ Office, this week (on Monday) it had incarcerated Kim Il-hwan, co-founder of CoinNest. This is the first time a member of a Korean cryptocurrency exchange has been incarcerated. Prosecutors consider that the CoinNest administrative has redirected customer funds to the company executives`benefits.

The prosecution’s order of arrest for Kim was moved by The Seoul Metropolitan Governmental Financial Investigation Division scan of three virtual exchanges launching on December 12th, 2017. CoinNest was included in this pursuit.

The prosecution was also announced to be investigating another virtual cryptocurrency exchange that invested means collected from ordinary people with a help of a deceptive scheme. Adding to the curious disposition of the arrest, the Korea Blockchain Association said, “CoinNest already resigned before the investigation.”

South Korean government is supposed to pay more attention to transparency in cryptocurrency trading within the framework of the current law, and definitely obstruct  illegal and fraudulent activities, but it stopped short of banning trading.

The authorities have made indefinite and sometimes contradictory statements about the possible ways of regulation cryptocurrency exchanges. Though their positions have been clarified a little later at formal press events, news hearsays and the language/cultural barrier have been accused for causing different asset prices to both soar and tank in recent months.

The country has taken a key position for digital asset trading in the past year as volumes shifted away from China, regulation in Japan constricted, and unclear local laws promoted a degree of anonymous and unregulated activity.

$60M Stolen From Zaif Exchange

As a result of the attack, which occurred as early as September 14, 4.5 billion yen owned by its users were stolen from the hot wallets of the exchang
20 September 2018   279

Hackers were able to steal almost $ 60 million in cryptocurrencies from the Japanese crypto-exchange Zaif, Cointelegraph reports.

As a result of the attack, which occurred as early as September 14, 4.5 billion yen owned by its users were stolen from the hot wallets of the exchange, as well as 2.2 billion yen, which was the company's assets. Thus, the total loss of Zaif amounted to 6.7 billion yen or about $ 59.7 million.

Tech Bureau Inc, which is the operator of Zaif, in a press release says that it found a server error on September 17, after which the input / output of funds on the exchange was suspended. September 18, the company realized that the error was caused by a hacker attack, and reported the incident to the Financial Services Agency of Japan. Hackers stole 5,966 bitcoins, as well as assets in Bitcoin Cash and MonaCoin.

According to Tech Bureau Inc, Fisco Digital Asset Group will help to partially compensate for the damage caused to users by providing 5 billion yen ($ 44.5 million). Tech Bureau agreed with Fisco to dismiss more than half of its directors and corporate auditors, and Fisco in turn will become its main shareholder.

Earlier this year, Zaif already recognized the existence of a "system malfunction", using which, the clients of the exchange were temporarily able to credit trillions of dollars in their accounts with bitcoins.