Coinone Recovers 7.5 Billion Won from Voice Phishing Scams

Coinone, a cryptocurrency exchange, has recently reported that it has assisted in recovering approximately 7.5 billion won from victims of voice phishing and other telecommunications financial fraud over the past three years in collaboration with law enforcement and financial institutions.

From October 2023 to September 2024, Coinone worked with the Seoul Metropolitan Police Agency and KakaoBank to support the refund of a total of 495 cases, amounting to about 7.48 billion won, as announced on October 27.

Previously, cryptocurrency exchanges were not included under the Telecommunications Fraud Victim Refund Act, which meant there was no official procedure for returning funds to victims. While exchanges could restrict account usage after receiving fraud reports to prevent further losses, returning funds to actual victims was challenging.

In response, Coinone established a separate refund procedure in cooperation with the Seoul Police. The police track transaction histories and fund flows of thousands of accounts to identify victims, after which Coinone calculates the amount to be refunded and initiates the return process. This collaboration has directly refunded victims a total of 83 cases, amounting to approximately 2.47 billion won.

Starting in October 2024, Coinone also set up a refund system with its partner bank, KakaoBank, which operates under real-name accounts. Both parties have established a hotline for quick verification and refund of victim funds, resulting in 412 cases being returned, totaling about 5.01 billion won.

As of October 1, Coinone transitioned to directly managing the victim relief process following the implementation of the revised Telecommunications Fraud Victim Refund Act.

A representative from Coinone's user protection team stated, "It was most rewarding when those who received their refunds expressed their gratitude." They added, "We will continue to work closely with relevant agencies to ensure that victim funds are returned swiftly even after the revised law takes effect."