A small South Korean cryptocurrency exchange has received arrest warrants for some of its employees, including the representative director. According to a local news outlet, arrest warrants have been issued to some employees of a South Korean crypto exchange known as HTS Coin.
South Korean Exchange Receives Arrest Warrants
The main complain is that the representative director known as Shin, and some of his employees, are suspected of taking money that should have never be taken. The news outlet explained:
“According to the prosecution, Shin and his employees are suspected of taking money out of their accounts by transferring customer funds from a bank account to another account.”
Moreover, the report says that the three individuals are suspected of deceiving investors, falsified records, and used money from customers’ accounts as personal account of the exchange.
The exchange wrote on its website that all services, excluding Korean won deposits, operating normally.
The website read as follows:
“HTS Coin is currently under investigation by the prosecution and we are working diligently. Unlike external concerns, we still have 100% of your deposits and coins. We keep customer deposits and coins that can be withdrawn promptly even if all customers request a withdrawal at the same time.”
This is not the first time that the exchange is involved in troubles with the regulatory agencies in the country. Back in February, HTS Coin was not able to sign an arrangement with banks for opening new accounts.
South Korean Cryptocurrency Exchanges
South Korea has been imposing different regulations to virtual currency exchanges in order to have the market under control. At the beginning of the year, the regulatory authorities decided to impose stricter measures for exchanges to operate.
Of course, some regulations that would bring legitimacy to the market were welcomed by important players in the crypto field.
For example, one of the most important cryptocurrency exchanges in the country, Bithumb, explained:
“A right set of regulations will rather nurture the virtual currency market, and we would welcome that.”
At the same time, in April, a blockchain organization in the country wanted to create a self-regulatory framework for the cryptocurrency environment in South Korea.
Jeon Jae-jin, chairman of the association, explained:
“We will establish the order of the domestically cryptographic exchange market through self-regulatory review. By providing a safeguard for the protection of users we will contribute to ensure the asset safety.”
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