Crypto exchange Korbit has reportedly announced it would also monitor the accounts of its executives and employees’ family for strong internal controls. A prominent South Korean crypto exchange, Korbit wants to strengthen its internal control mechanisms in the post-FTX scandal era.
As per the Special Financial Intelligence Law Enforcement Decree, South Korean virtual asset exchanges’ executives can’t trade virtual assets on the same exchange. But so far the family members of employees and executives were immune from these statutes. Still, Korbit intends to go a step further to monitor the accounts of employees’ families for better internal controls.
On these lines, moving forward, Korbit executives and employees’ families would be required to report to Korbit the particulars of their crypto accounts. Korbit has also strengthened internal control mechanisms comprehensively, to prohibit “improper transactions and conflicts of interest.”
Sejin Oh, CEO, Korbit, said,
The implementation of employee family account monitoring is part of an effort to bring Cobit’s internal control standards to the level of traditional finance. We will take the lead in fulfilling the social responsibility of the exchange bond, protecting investors and creating a healthy virtual asset investment culture.
Korbit has also put in place mechanisms to prevent “unfair trade and prohibition of contemplation.” On these lines, the Code of Ethics has been revised whereas the Code of Justice is sent to the Korbit staff for due compliance.
In other crypto news from South Korea, Lee Byung-gul, CEO, V Global, is reportedly facing 25 years in prison for a $2.26 billion crypto pyramid scheme. Defrauding over 50,000 investors in July 2020 and April 2021, local media reports V Global “promised 300% returns on investments in its self-issued token V Cash.”
Seven other V Global executives accused of conspiring to defraud investors via a pyramid scheme reportedly face three to eight years in prison.