Below-fire South Korean crypto trade Coinbit has denied manipulation allegations after police raided the agency’s headquarters – however an ex-employee alleges the trade’s “violent” CEO assaulted workers, and extorted and threatened staff.
Per Seoul Shinmun, a Coinbit official said that “allegations of inflating transaction quantity and manipulating token costs aren’t true in any respect.”
Media sources imagine that as much as “99%” of the corporate’s buying and selling information was fudged, with staff establishing “ghost accounts” to artificially enhance buying and selling volumes. The agency’s buying and selling figures had risen so excessive that the trade had risen to 3rd place in home rankings, behind solely market-leaders Bithumb and Upbit.
Per Fintech Publish, Coinbit added that it was conducting enterprise as regular – together with a spread of promotional provides.
The agency added,
“Coinbit is working arduous to cooperate with the [police] investigation and can actively make clear any misunderstandings and untruths.”
Nonetheless, the trade is now dealing with a recent spherical of allegations involving the corporate’s de facto CEO, a 48-year-old man surnamed Choi.
In line with Seoul Shinmun, Choi (first title withheld for authorized causes) is legally listed as a member of Coinbit’s advisory board – however in truth runs the agency on a day-to-day foundation.
A person claiming to be a former Coinbit workers member has claimed that Choi threatened to “kill” and “minimize off” the “legs and arms” of workers members who didn’t obey his instructions – and attacked staff with a glass bottle.
One worker was allegedly left with cuts and bruises to the pinnacle after one in every of Choi’s most violent flare-ups.
Choi additionally allegedly claimed to be a “gangster” who had underworld crime hyperlinks, and said that he would name in his mob connections on staff who didn’t toe to the road.
In a single graphic outburst, Choi allegedly threatened to grind an worker’s physique to a pulp with a meat grinder and throw the stays right into a sewer.
Different folks claiming to be ex-employees informed the newspaper that they have been repeatedly hit with glass bottles and compelled at hand over large sums of money to Choi.
Choi reportedly extorted money from a number of members of workers, forcing them to signal paperwork stating they’d not reveal particulars about his conduct to the police.
He additionally allegedly ordered workers to hold out “insider trades,” insisting that there have been no guidelines to stop such actions.
The newspaper quotes a lawyer representing a number of of the ex-employees as stating that they knowledgeable police of the incidents on August 25 – the day earlier than the Coinbit places of work have been raided.
The case is probably going linked with an investigation launched late final yr into an unnamed “top-tier” crypto trade with an allegedly violent CEO named Choi, with places of work in Gangnam, Seoul.
Prosecutors had been hesitant to indict Choi on account of what media retailers have referred to as “inadequate proof.”
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