- “At this time we are focused on cooperating with the ongoing investigation,” reads Coin’s response to CoinDesk.
- Bitcoin price led a brief bullish spike during the session on Wednesday, but the 61.8% Fib retracement level prevented gains towards $7,000.
The department of cybercrime investigation unit of South Korea’s provincial police department has reported that it will be charging Coinone exchange due the margin trading it offers its clients. The department says, in retrospect, Coinone is offering illegal gambling and that it could be aiding criminal laundering activities.
The unit has been conducting an investigation for about 10 months and the report shows that approximately 19,000 people took part in the margin trading. Moreover, 20 of them became conspicuous due to the high volumes of transactions they recorded. Combined they all transacted a total of $2.8 million in about 3,000 to 13,000 margin trading orders on Coinone exchange. The CEO, Myunghun Cha will also be charged along two other executives and the 20 traders who had the highest volumes. Coinone, in response to CoinDesk’s inquiries, said:
“At this time we are focused on cooperating with the ongoing investigation, and will continue to do so as the case is in the process of moving over to the Prosecution Service from the Police Agency.”
Bitcoin price analysis
Bitcoin price led a brief bullish spike during the session on Wednesday, the 61.8% Fib retracement level with the last high leg of $8,559 and a low of $7,090 prevented further gains towards $7,000. However, BTC/USD spiked again on Thursday Asian trading hours, while using $7,500 as a support. It attacked the retracement level above, this time breaking the key resistance at $7,000 and is now trading marginally above $7,700. The contracting triangle will offer resistance towards $7,800, but the psychological $8,000 is still out of reach for now. On the flipside the 61.8% Fibo will now offer support, besides a stronger support is provided by the 100 SMA at $7,400.
BTC/USD 1-hour chart
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