Once South Korea’s third largest exchange, Coinnest, is closing down. Unexpected Fall in Trades, harms CoinNest
Last month a message was posted on the exchange’s website saying that it is no longer operating. It also stated that users will need to withdraw any funds held on its platform by April 30. The exchange said that in order to assist the process, the fees for withdrawals and the minimum threshold were lowered.
The website notice was vague about the reasons for the closure, but an official from Coinnest did share with 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.”
Unexpected Fall in Trades, harms CoinNest. The exchange had a bad year which impacted their decision to shut down. An executive of the firm was arrested on suspicion of fraud a year ago. He was later convicted and had to serve a jail sentence as well as pay a 3 billion Korean won ($2.5 million) fine.
When speaking to CoinDesk Korea, another official at Coinnest played down the connection with the company’s closure.
Earlier this year, in January, Coinnest lost $5 million in a mistaken airdrop. At the time it was revealed by the firm that due to a computer error, bitcoin and other cryptocurrencies were sent to customers. When the incident occurred, Coinnest had been trying to distribute We Game Tokens (WGT).