Korean Crypto Exchange Accused of Illegal Token Operations, Lawsuit Against Bithumb to Follow
South Korean media reports that the law company Aone has pressed charges against the crypto trading company Cashierest and its owner Newlink Co. Ltd. The law firm accuses the exchange in price pumping. Besides, the lawyers say that the token of the exchange in which dividends are paid out and which is used for rebating investor fees for trading operations breaks the capital market law of South Korea.
Accusations in details
The lawyers that filed a charge claim that the Cashierest platform uses the so-called ‘cage pumping’. This sort of manipulation provokes price surges but at the same time sets limits to investors to withdraw their funds in crypto.
Darryn PollockThe complaining side also states that the exchange has violated the local laws by emitting the CAP coin for paying dividends. The lawyers quoted Article 119 of the South Korean Capital Markets Act and claimed that the issuing of CAP violates the procedure of securities issuance.
Another violation reportedly is unfair trading to do with the price of the tokens.
Suits against bigger exchanges to follow
The local media claims that the law company in question also intends to file the suit against Bithumb and a few other crypto exchanges.
Arman Shirinyan
Alex Dovbnya
U.Today Editorial Team
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Dan Burgin