Law Firm Sues Crypto Exchange In Korea
Aone, South Korean law firm, filed a charge with Seoul Central District Court against Newlink Co. Ltd. The company owns Cashierest, a crypto exchange. According to local news, the complaint concerns a violation of Korean capital markets law.
Another story from South Korea? A typical day in the office. This Asian country does a lot to be the focal point of the blockchain industry. First, there was a plan to implement a new technology into the Smart City concept in Seoul and now we have another story.
You’ve been served
That’s not the first time when Cashierest has been in big trouble. Earlier this year, the crypto exchange had an internal system error. The users were able to pull back more than five times the coins demanded. After that malfunction, the company asked their clients to return the coins. Everyone who hadn’t given back the coins, ended up in the courtroom with Cashierest.
It seems that they’ll have to go to court one more time. Aone, Seoul’s law firm, filed a complaint with Central District Court. Kim Dong-joo, leading Aone’s lawyer, revealed that his company is going after this crypto exchange for violating capital markets law involving token issuance.
The Cashierest has committed two wrongdoings by issuing dividend coin called CAP. The first illegal act considers “violation of the securities issuance procedure,” as defined in the Article 119 of the country’s Capital Markets Act. The second one is about the article 178. The paragraph forbids unfair trading. According to the publication in Zdnet Korea, the exchange wanted to pump the price of its token.
The CAP is a crypto exchange’s own token. It was first distributed in August. The token has three factors: dividends, trade mining, referral mining. In CAP’s whitepaper the firm stated:
“By possessing CAP, you can receive 100% of profits of Cashierest’s exchange charges. Regarding charges issued with each market (KRW, BTC, ETH, TUSD), the refund of charges will be 100% refunded in each applicable currency”.
Dividends are regular for tokens. However, trade mining is often called controversial, or even scam. According to Changpeng Zhao, CEO of Binance, trade mining is just a cleverly named scam.
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