Error causes exchange to distribute $ 20 million in bitcoin and crypto-coins in place of airdrop

According to the site, the incident happened due to a computer error when the company was trying to distribute the tokens and instead, randomly, crypto-coins were sent to multiple users.

According to the report, experts are trying to recoup the funds by reversing all transactions, but found that many of those who received the improperly encrypted, mostly bitcoin, have already converted them into the local currency.

However, since the day of the event, when the company appealed to customers to return the funds received by mistake, it has already recovered half of the resources.

According to Coindesk, Coinnest has been involved in controversy before. Last year, exchange CEO Kim Ik-hwan was accused of misappropriating company funds.

There has not yet been an outcome, however, and it is unclear whether irregularities actually occurred, the site says.

Prisons

The matter comes back to March of last year, when the South Korean prosecutor arrested people, including the high summit of criptomoedas exchanges.

They were suspected of using investors' money for misuse in the purchase of crypto-coins in other exchanges.More recently, Seoul's state prosecutor's office has accused three executives of UPbit, one of South Korea's largest crypto-currency exchanges, of fraud.

Among the accused is Song Chi-Hyung, the founder of the company. The prosecution says they allegedly carried out fraudulent transactions between September and December last year.

Executives would have used a fake corporate account to create orders at very expressive exchange exchanges - 254 trillion won (about R $ 880 billion at that time) - which greatly increased turnover.

In this way, Chi-Hyung and collusion attract more customers to the platform. It turned out that they sold 11,550 bitcoins, which amounted to 150 billion won (about R $ 500 million at that time) through these transactions.