April 4, 2018
South Korean prosecutors have reportedly detained Kim Yik-hwan, a co-founder of the cryptocurrency exchange Coinnest on suspicion of embezzlement and fraud.
This is the first ever detention of a representative of a South Korean cryptocurrency exchange. A formal arrest warrant is expected to be issued soon.
Prosecutors believe that funds belonging to crypto-trading customers were transferred into the accounts of exchange representatives.
The arrest comes after a three-day search that authorities conducted last month at three cryptocurrency exchanges, one of which was Coinnest. Data relating to accounting were among those obtained in the search and subsequently examined for violations.