The CEO of the South Korean cryptocurrency exchange Bitsonic, Jinwook Shin, was sentenced to seven years in prison for participating in a fraudulent scheme worth 10 billion won ($7.5 million). Local media reported this.
According to the case file, from January 2019 to May 2021, Shin artificially inflated trading volumes on the exchange and the price of the native token Bitsonic Coin to hide growing losses.
Specifically, he used a buyback method, moving the coin between his wallets, and also created fake points in Korean won to simulate cash flowing into the platform.
To falsify transactions, special software was created, which was controlled by the vice president of Bitsonic, surnamed Bae. For his complicity, he was sentenced to a year in prison.
In total, Shin and Bae defrauded 101 investors, pocketing the resulting assets for themselves.
Recall that the once leading South Korean Bitcoin exchange Bitsonic stopped operations in 2021, citing “internal and external problems.” Two years later, it became known about the arrest of top managers and the charges brought against them.
At the end of July 2023, the South Korean government launched a unit to combat cryptocurrency crimes. The initiative is driven by a surge in illegal activity in the digital asset market and the lack of legal protection for investors.
The authorities also called on crypto exchanges to strengthen compliance control.
According to the case file, from January 2019 to May 2021, Shin artificially inflated trading volumes on the exchange and the price of the native token Bitsonic Coin to hide growing losses.
Specifically, he used a buyback method, moving the coin between his wallets, and also created fake points in Korean won to simulate cash flowing into the platform.
To falsify transactions, special software was created, which was controlled by the vice president of Bitsonic, surnamed Bae. For his complicity, he was sentenced to a year in prison.
In total, Shin and Bae defrauded 101 investors, pocketing the resulting assets for themselves.
Recall that the once leading South Korean Bitcoin exchange Bitsonic stopped operations in 2021, citing “internal and external problems.” Two years later, it became known about the arrest of top managers and the charges brought against them.
At the end of July 2023, the South Korean government launched a unit to combat cryptocurrency crimes. The initiative is driven by a surge in illegal activity in the digital asset market and the lack of legal protection for investors.
The authorities also called on crypto exchanges to strengthen compliance control.
