The South Korean crypto exchange Coinnest closes its doors!
Coinnest, which has become the third largest cryptocurrency exchange in South Korea, has announced its closure.
On Tuesday, April 16, 2019, the company announced in a statement posted on its website that it would cease operations, which would be an unavoidable step to protect the assets of its customers.
The publication contains a chronogram in which they detail each of the steps to follow for the realization of their operations.
Coindesk Korea interviewed a Coinnest official about the decision, to which he replied that this stems from the decrease in the volume of operations:
“This is the natural result of a decrease in the volume of operations. Regulatory issues and commercial decisions formed the basis for this decision.”
After occupying the sixth place among the country’s largest trading platforms according to the 2018 count, Coinnest began to experience problems, which is not precisely associated with the market crisis.
Last year, one of its leaders, Kim Ik-hwan, was arrested for fraud and embezzlement, which was confirmed later.
The former trade chief was sentenced to a prison term of 3,000 million Korean Won, or 2.5 million US dollars.
However, another Coinnest official downplayed the connection with the company’s closure when he spoke with CoinDesk Korea.
Coinnest also lost $5 million as a result of an erroneous publication in January 2019.
The firm then revealed that Bitcoins and other encrypted currencies had been sent to customers due to a computer error.
The exchange attempted to distribute We Game Tokens (WGT) when the incident occurred.
Computer management errors, one of the founders imprisoned for fraud, the closure seemed inevitable in the end given the overwhelming elements threatening the continuation of operations.
There will surely be others and you have to be careful where you leave your tokens and especially if it is on small crypto exchanges without serious reputation.