[Blockmedia James Jung] Coin investors faced the risk of massive losses like the second Luna incident. The cryptocurrency project led by Hancom and Arowana Hub was caught up in the lawsuit.
The Seoul Central District Court accepted an application for seizure of bonds by general investors who invested in Arowana Coin on July 6th. As a result, more than 430 million coins owned by the Arowana Foundation, which is kept by the wallet manager Hexland, were seized. Movement is prohibited until the lawsuit is finalized.
[The Seoul Central District Court’s written decision, Seoul Central District Court]
The amount of damages filed by investors is 80 billion won(61M$). If investors win, up to 50 million arowana coins can be handed over to investors without locking up.
Bithumb, a cryptocurrency exchange that listed Arowana Coin said, “We know the controversy related to Arowana” on July 22nd. Hancom, which is actually in charge of the Arowana Coin project, said it later confirmed that the application for seizure had been accepted by the court.
# Investor “Hancom refuses to follow the contract to send 50 Million Arowana”…Court “There is a reason for the application for provisional seizure.”
Investor signed a contract with Hancom to invest 50 million Arowana coins and offered the payment.
Hancom did not implement the promise even though it had to send the promised coin to the investor’s wallet immediately after Arowana Coin was listed in 2021.
The Arowana Foundation coin wallet is managed by Hexlant. Investor claimed that they missed the opportunity to earn profits from their investments because they failed to receive 50 million arowana coins in time. It’s 10% of the total 500 million arowana coin.
Investor applied for 80 billion won(61M$) as a claim, saying that the amount of damages reached 115.6 billion won(89M$) even calculated on the lowest price of coins. Investor filed for seizure of all coins in the Arowana Foundation wallet to secure bonds. The court accepted.
[Sentence of seizure, Seoul Central District Court]
# What’s Arowana Coin?
Arowana Coin is related to the gold exchange led by Hancom. it also recorded a surge of more than 1,000% shortly after being listed on Bithumb in April 2021.
However, Arowana is under investigation by the authorities as suspicions have been raised that it was used to create slush funds for Hancom Chairman Sang-chul Kim.
Ki-dae Yang of the Deobooleoh Democratic Party of Korea released related transcripts during a parliamentary audit in October last year, saying, “There are suspicions that HanCom Chairman Sang-chul Kim raised slush funds using Arowana Coin.”
# What will happen to Arowana?
Investors and Hancom are engaged in a fierce battle over coin investment contracts, including lawsuits against accusations and seizure of counterparts’ accounts.
This fact has not even been disclosed, and Bithumb Exchange is also on the sidelines without investor protection measures.
Depending on the outcome of the lawsuit, up to 50 million Arowana coins can be put on the market without lock up. It can lead to a huge bomb for sale.
The investor’s account in Bithumb already has 8.5 million Arowana coins. It is classified as an “accident account” and cannot be traded.
Even if the investor’s account in Bithumb is released from the accident account, 10 million arowana coins can be sold immediately.
On top of that, if the remaining 40 million are confirmed as investor’s due on the lawsuit, Arowana Coin will have to deal with up to 50 million potential sales.
# Investor said, “The process of listing coins on bithumb was unusual.”
Investors reportedly submitted detailed evidence of the process of Arowana Coin being listed on Bithumb during a civil and criminal lawsuit with Hancom.
An investor official said, “If necessary, it will be covered in a full-fledged lawsuit, but there was an unusual situation when Arowana Coin was listed on Bithumb.”
Police and prosecutors are separately investigating the creation of slush funds for Hancom Chairman Sang-chul Kim and various accusations filed by Ki-dae Yang. As the investigation proceeds, suspicions about the process of listing Arowana Coin on Bithumb are also expected to be revealed.
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