Coinnest, once South Korea’s third-largest Cryptocurrency exchange has now announced its closure, through a notice on its website on Tuesday.
As per the post, the exchange will no longer be operating and the exchange users are required to withdraw any funds held on its platform by April 30. Notably, the fees for withdrawals and the minimum threshold have been lowered to assist the withdrawal process. Though Coinnest was vague about the reasons for the closure, an official 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.”
The onset of the bad times
The exchange has been experiencing a bad year. An executive of the firm was arrested about a year ago under the suspicion of fraud, later convicted he received a jail sentence and a 3 billion Korean won ($2.5 million) fine. However, when the publishing spoke to CoinDesk Korea to another official at Coinnest played down the connection with the company’s closure
Additionally, the platform has had lost $ 15 million in a mistaken airdrop this January, that was caused due to a computer error. The exchange was trying to distribute We Game Tokens (WGT) when bitcoin and other cryptocurrencies were mistakenly sent to customers.