Police Allege Coinone Margin Trading Is Illegal Gambling

Police suggests that the margin trading of cryptocurrencies on Coinone can be a form of illegal gambling activity and used for money laundering
07 June 2018   1086

The South Korean Police Department announced the investigation on the Coinone exchange due to its services in margin trading of cryptocurrencies, CoinDesk reports.

The police refers to the results of their 10-month investigation, during which it was found that 19,000 people participated in margin trading on the platform, and 20 of them became the main defendants of the case because of high trading volumes.

The high-volume traders, as alleged by the lw enforcements, in total handled over 3 billion won ($2.8 million) in 3,000 to 13,000 instances of margin trading using Coinone's service, which is deemed illegal gambling by the police.

Thus, police is going to bring to responsibility three Coinone executives, including its CEO, Muyunghun Cha, and 20 traders with the highest volumes of trades.

At this time we are focused on cooperating with the ongoing investigation, and will continue to do so as the case is in the process of moving over to the Prosecution Service from the Police Agency.
 

Coinone Representative

Coinone provided shoulder-trading services from November 2016 to December 2017, and the investigation, according to Yonhap, was initiated in August 2017.

BTC Futures Didn't Collapse Market in 2017, - CME

According to the managing director of CME Group, they "didn’t have that wherewithal, that ability to drive that impact"
14 November 2019   84

Tim McCourt, managing director of CME Group, has denied the widespread theory that the alleged launch of regulated bitcoin futures caused a market crash after the 2017 rally.

A lot of times, people ask us, ‘Did futures cause the price to decline from $20,000 to $3,000?’ And the answer is ‘no,’.
 

Tim McCourt

Global head of equity index and alternative investment products, CME Group

He recalled that at first the turnover of bitcoin futures on CME was 1,100 contracts, which is equivalent to 5300-5500 BTC or about $ 100 million at prices at the end of 2017.

There is no way over that period of time, given the size of the Bitcoin market, in terms of spot trading or the ability to mine Bitcoin, that futures could cause that impact. These things are governed by the law of supply and demand. We just didn’t have that wherewithal, that ability to drive that impact.
 

Tim McCourt

Global head of equity index and alternative investment products, CME Group

Chicago Mercantile Exchange (CME) Bitcoin Futures was launched on December 18, 2017. A day earlier, the price of bitcoin reached a historic high in the region of $ 20,000, but soon plummeted.

Despite the sharp change of mood and the bear market, the volume of bitcoin futures trading on CME grew - by May of this year, the average daily turnover reached 13,600 contracts, corresponding to 68,000 BTC or $ 515 million at the exchange rate at that time.

We certainly play a role in the price discovery because people can freely express their demand to buy and sell at CME and transact with one another, but I wouldn’t necessarily say we are impacting price.
 

Tim McCourt

Global head of equity index and alternative investment products, CME Group

Among other things, a CME representative said that he is an ardent supporter of Bitcoin ETF and hopes to see such products on the market soon.

ETF providers and asset managers are our customers at CME. They use our futures products to create other ETFs, to hedge structure projects, and we’re certainly trying to enable them to do the same type of strategy on Bitcoin. We want to make sure they have the risk-management tools they need to be successful in managing their risk. We’re working with them to make sure they have what they need for trying to introduce products such as an ETF.
 

Tim McCourt

Global head of equity index and alternative investment products, CME Grou

Recently, Christopher Giancarlo, the former head of the Commodity Exchange Commodity Trading Commission (CFTC), said recently that the launch of the CME Bitcoin Futures was a targeted action by the Donald Trump administration to eliminate the bubble in the cryptocurrency market.