Coinnest has announced that it has ceased operations in South Korea. Formerly the third largest cryptocurrency in the nation, it cited lowered demand for trading against a background of regulations and business interests, as the reason for this closure.
A notice was posted this week on its website informing its users that it was no longer in operation, asking all users to withdraw any funds stored on their platform before 1 May 2019. To assist with this procedure, the management have lowered withdrawal fees as well as the minimum threshold permissible.
A staff member from Coinnest told CoinDesk Korea:
“It is a natural result of a decrease in trading volume. Both regulatory issues and business decisions have served as a background for this decision.”
However, users will remember a rocky road leading to this untimely end for Coinnest, when an employee was arrested in 2018 on suspicion of fraud. The executive was later convicted and fined KRW 3 billion (USD 2.5 million), along with a jail sentence.
More recently in January, Coinnest bumbled an airdrop, sending customers almost USD 5 million in Bitcoin and other cryptocurrencies, instead of We Game Tokens (WGT) as it had intended.
South Korean exchanges are also a purported target of North Korea-backed hackers, and hacks of exchanges in the country have made news headlines over the past two years.
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