Coming as a negative development for the crypto community, Coinnest, the South Korea-based cryptocurrency and digital asset exchange has declared to shut down its operations. Notably, Coinnest was once the third largest digital asset exchange in the country.
The crypto exchange posted a notice on its website detailing the development. The notice mentioned that as of Tuesday it is no longer operating. The notice further added that it is necessary for the users to withdraw any funds held on its platform by April 30. It further mentioned that the fees for withdrawals and the minimum threshold have been decreased to help the process.
It is to be noted that the notice was unclear regarding the main reasons for the closure. However, an exchange official told CoinDesk Korea that exchange closure is a natural consequence of a decline in trading volume. The official added that both business decisions and regulatory issues have served as primary factors for their decision.
Notably, the closure decision comes after an awful year for the crypto exchange. Interestingly, a year ago, an executive of the firm was detained on doubt of deception. He was later convicted and received a jail sentence and a fine of 3 billion Korean won (around $2.5 million).
Nevertheless, when speaking to CoinDesk Korea, another official at the crypto exchange played down the connection with the crypto exchange’s closure.
It is to be noted that Coinnest also lost around $5 million in an erroneous airdrop this January. The exchange divulged at the time that bitcoin and several altcoins were sent to customers because of a computer error. Interestingly, the digital asset exchange had been trying to dole out We Game Tokens (WGT) when the event took place.