Korean Exchange Coinone Addresses NFP Token Crash with Legal Action
The post Korean Exchange Coinone Addresses NFP Token Crash with Legal Action appeared on BitcoinEthereumNews.com.
In response to a significant price crash of the NFPrompt (NFP) token on its platform, South Korean cryptocurrency exchange Coinone is pursuing legal action involving local and Canadian law firms. The incident, which occurred in March 2024, saw the price of the NFP token on Coinone plummet by approximately 70%, compared to its value on international exchanges. The legal steps come after a dispute between Coinone and the NFP Foundation, the entity overseeing the NFP token, regarding the cause of the crash. The NFP Incident: What Happened? The crash in the NFP token price on Coinone traces back to a disagreement between the exchange and the NFP Foundation over the handling of a reported hack. In March, the NFP Foundation claimed that a hack had occurred, leading to unauthorized access to a large quantity of tokens. As a result, they requested that cryptocurrency exchanges worldwide halt deposits and withdrawals of NFP tokens to prevent further damage. Coinone’s Response to the Hack Claim Despite the NFP Foundation’s request, Coinone continued to allow deposits and withdrawals of the NFP token, citing insufficient evidence of the alleged hack. This move diverged from the response of other exchanges, which temporarily halted NFP trading while awaiting further clarification. Coinone’s decision led to a significant sell-off of NFP tokens on its platform, driving the price down by 70%, well below the token’s value on other exchanges. Internal Investigation by Coinone Following the crash, Coinone conducted an internal investigation into the incident. The exchange concluded that the tokens in question were properly distributed and that there was no evidence to support the NFP Foundation’s claim of a hack. Despite these findings, Coinone’s decision to continue allowing NFP transactions during the uncertainty contributed to the sharp drop in the token’s price on its platform. Limited Support…
Filed under: News - @ October 22, 2024 7:13 am