Cryptocurrency Exchange Under Investigation for Accepting Money to List Tokens

03/17/2023 08:17 • NFT Newsflash • 154 views

On March 17th, it was confirmed that employees of Bithumb, another cryptocurrency exchange in South Korea, after Coinone, were also being investigated by prosecutors for allegedly collecting money to list cryptocurrencies. The Financial Investigation Department 2 of the Southern Seoul District Attorney’s Office conducted an arrest and search on the Bithumb Holdings office and the suspect Lee.

Bithumb employees are investigated by South Korean prosecutors for allegedly accepting bribes when the company launched cryptocurrency

Analysis based on this information:

On March 17th, prosecutors in South Korea confirmed that employees of Bithumb, a cryptocurrency exchange, are being investigated for allegedly accepting money in exchange for listing tokens. This news comes after a similar investigation was launched against Coinone, another South Korean exchange. The Financial Investigation Department 2 of the Southern Seoul District Attorney’s Office has conducted an arrest and search on the Bithumb Holdings office and one of the suspects, Lee.

The investigation began after a complaint was filed a few months ago. This complaint alleged that the exchange received money from the team behind a particular token in exchange for their listing on the exchange. This would essentially mean that Bithumb was accepting payment to manipulate the market and give that token an unfair advantage by providing it with increased liquidity.

This investigation is significant because manipulation of the market and insider trading has been a major issue in the cryptocurrency industry for years. Cryptocurrency trading can be a highly volatile market, and insider trading only serves to make it more dangerous for investors. Furthermore, the allegations are particularly worrying as Bithumb is one of the largest exchanges in South Korea and one of the biggest in the world.

While this incident does not necessarily damage the reputation of the entire cryptocurrency industry, it certainly adds to the perception that the market is unregulated and that fraud is rampant. In order for the cryptocurrency industry to mature, it needs to have proper regulatory oversight and enforceable rules in place that will prevent fraudulent activities from taking place.

In conclusion, the allegations against Bithumb once again highlight the issues of market manipulation and the lack of regulation in the cryptocurrency industry. It is imperative that governments around the world take steps to create a legal framework for the industry that will protect investors and ensure fair competition in the marketplace.

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