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Unable to withdraw Korean won, issue an IOU to the user?

According to Mr. A, there was an incident of "opening an IOU" regarding the withdrawal of Korean won. In other words, due to the continuous inability to withdraw Korean won, in order to appease the dissatisfaction of users of Korean won assets, the exchange once issued IOUs to users. Generally speaking, an IOU is a loan certification document issued by the borrower to the lender, on which information such as the repayment time is clearly written, and it has legal effect. But the problem is that in this way, the creditor (lender) cannot take legal measures against the borrower before the repayment time written on the IOU.

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"After stopping the user withdrawal service, the exchange still has transfer records"

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"HanBit Soft cannot be exempted from liability, having raised US$50 million through ICO"

Mr. A emphasized that HanBit Soft, which used to be the investment company of Coinzest, was also responsible for this incident. A said, “According to the quarterly report released by HanBit Soft, Coinzest’s total assets at the end of 2018 were 19.1 billion won, and the current net loss was 57.5 million won. Coinzest stopped withdrawing services from June 2019, and the assets of 19.1 billion won after that Where does the customer’s funds go is still a problem”, “If Coinzest, which is in debt, uses customer funds instead of the exchange’s assets to distribute dividends to investment companies such as HanBit Soft, it can be regarded as embezzlement of public funds.”

The "Bryllite coin" issued by HanBit Soft in 2018 received $50 million in ICO (cryptocurrency public offering) and was listed on the Coinzest exchange. Regarding this, A said, “Coinzest also stopped trading Bryllite coins after stopping the withdrawal service. Users who bought Bryllite coins from the Coinzest exchange because they believed in HanBit Soft could only watch the price drop to 7 won.” The ICO price of Bryllite coin was 200 won, which is equivalent to a drop of 97%. A once again emphasized that HanBit Soft cannot be exempted from liability during the process.

JOIND Reporter Park Sang-geol park.sanghyuk@joongang.co.kr

JOIND Reporter Park Sang-geol park.sanghyuk@joongang.co.kr