Prosecutors are searching and seizing the offices of the virtual asset exchange Coinone and other locations on the 30th on suspicion of breach of duty.
The Seoul Southern District Prosecutors' Office Joint Investigation Division on Virtual Asset Crimes (Director General Lee Sang-hyeok) is conducting searches and seizures this day at Coinone's headquarters in Yeongdeungpo-gu, Seoul, and at suspects' residences, among other places.
The search and seizure this day are related to allegations that a former CEO lent 27 billion won of Coinone funds to its controlling company without collateral. Earlier, the Financial Supervisory Service filed a complaint against the former CEO on suspicion of breach of duty, prompting the prosecution to open an investigation.
Regarding the search and seizure this day, Coinone said, "This is one of the issues pointed out during the comprehensive inspection by the FSS in March this year, and it concerns the 2017 Yellow Mobile case in which our company, as the victim, ultimately won."
It added, "Although we sufficiently explained this to the FSS during the comprehensive inspection, the matter was referred to and is proceeding at the Southern District Prosecutors' Office at the FSS's request for additional verification," and "we are cooperating proactively."