Ex-Top 3 South Korea Exchange Closes Shop

Ex-Top 3 South Korea Exchange Closes Shop



Ex-Top 3 South Korea Exchange Closes Shop

Coinnest has announced that it has ceased operations in South Korea. Formerly the third largest cryptocurrency in the nation, it cited lowered demand for trading against a background of regulations and business interests, as the reason for this closure.

A notice was posted this week on its website informing its users that it was no longer in operation, asking all users to withdraw any funds stored on their platform before 1 May 2019. To assist with this procedure, the management have lowered withdrawal fees as well as the minimum threshold permissible.

A staff member from Coinnest told CoinDesk Korea:

“It is a natural result of a decrease in trading volume. Both regulatory issues and business decisions have served as a background for this decision.”

However, users will remember a rocky road leading to this untimely end for Coinnest, when an employee was arrested in 2018 on suspicion of fraud. The executive was later convicted and fined KRW 3 billion (USD 2.5 million), along with a jail sentence.

More recently in January, Coinnest bumbled an airdrop, sending customers almost USD 5 million in Bitcoin and other cryptocurrencies, instead of We Game Tokens (WGT) as it had intended.

South Korean exchanges are also a purported target of North Korea-backed hackers, and hacks of exchanges in the country have made news headlines over the past two years.

 

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