Coinnest Cryptocurrency Exchange Closes its Doors

By Kapil Gauhar

Coinnest Exchange, the 5th largest cryptocurrency exchange in South Korea, has shut down its shop. The company announced its closure on Thursday last week, adding that it had already cut off new account creation abilities as of April 16. Trading, as well as deposits, will be cut off at the end of April, and all the funds are to be withdrawn by the end of June.

As indicated by the announcement, all transactions will and deposit payments will cease by 5 pm local time on April 30, 2019. From now until June 30, when the withdrawals stop, Coinnest has lowered its withdrawal fee as well as the minimum withdrawal amount for supporting your smooth withdrawal.

Coinnest adds –

“Please be sure to withdraw your assets before the withdrawal date. It is difficult to withdraw after [the withdrawal date].”

If we look at the history of the exchange from last year, we will notice that its shut down isn’t a surprise. In April 2018, Kim Il-hwan, the co-founder of the exchange, was arrested on embezzlement charges. The executives from the company faced bribery charges in September 2018 over the ‘unfair’ listing of the S Coin digital currency. The firm’s CEO and COO allegedly received a sum of $890,000 to list the coin.

In January this year, the Coinnest purportedly suffered a ‘computer glitch that led to an airdrop of about $5.3 million in BTC, this was the money that was never meant to be released. The airdrop was prepared to release only We Game tokens, instead of BTC.

In relation to those problems, the softening of the cryptocurrency market has been three of the big four cryptocurrency exchanges in South Korea suffer significant losses. Just Upbit saw a profit in 2018, while Coinone, Bithumb and Korbit reported losses. Upbit purportedly made over $87 million.