A popular South Korea based crypto exchange, Cashierest has been sued by a law firm named Aone. The South Korean law firm has accused the Crypto trading platform of engaging in price pumping operations. The law firm also indicated that the issuance of Cashierest’s personalized token, CAP, breaks the preexisting capital market laws of South Korea.
Aone Filled a Law Suit Against Cashierest
Aone made it known in the lawsuit against Cashierest that the company has been acting in bad faith and has not done well by its users. The Newlink Co. Ltd owned trading platform is been accused of using a phenomenon referred to as ‘cagepumping’. The idea behind this is to manipulate the market to provoke a surge in the price of coins and token. Once the price surge has occurred investors withdrawals get capped.
The law firm also states that the Cashierest has violated the South Korea laws by emitting the CAP coin for paying dividends. The CAP token has three main functions based on it whitepaper, these features are dividends, trade mining, and referral mining.
The whitepaper further states that:
“By possessing CAP, you can receive 100% of profits of Cashierest’s exchange charges. Regarding charges issued with each market (KRW, BTC, ETH, TUSD), the refund of charges will be 100% refunded in each applicable currency.”
Article 119 Violation
Aone lawyers were able to deduce that based on Article 119 of the South Korean Capital Markets Act, the issuance of CAP tokens by the exchange has violated the local law and all procedures involved in securities issuance. Another violation reported is price manipulation of tokens listed on the platform.
Aone has made known its intention of going after all bigger exchanges, most notably Bithumb. The law firm is on a row and is sure bent on getting justice for all South Korean crypto enthusiast getting ripped off.