South Korean Court Sentences Bitsonic CEO and CTO to Prison
A South Korean district court has handed down a prison sentence of eight years to the CEO and CTO of cryptocurrency exchange Bitsonic for stealing millions of dollars from customers. The Bitsonic CEO, Jinwook Shin, received a seven-year sentence, while the CTO, identified as Bae, received one year. The verdict was announced during the first trial of the case at the Seoul Eastern District Court Criminal Agreement Division 12 on February 6.
Bitsonic CEO Found Guilty of Fraudulent Activities
The court found Shin guilty of manipulating cryptocurrency prices and trading volume on Bitsonic between January 2019 and May 2021 using the buyback method. This involved purchasing a significant amount of Bitsonic Coin (BSC) to drive up its price. Additionally, Shin falsified Korean Won points in the Bitsonic system to create a false impression of heavy deposits. However, he actually stole cash and crypto deposits worth $7.5 million from about 101 investors.
Bitsonic CTO Sentenced for Obstruction of Business
Bae, the CTO, was sentenced for his involvement in obstructing business due to computer disorders. He developed and operated a program that enabled Shin to carry out the buyback method. The judge stated that Bae exploited his position as a coin exchange operator and manager to deceive victims into believing that transaction volume was increasing through normal transactions, resulting in over $7.5 million being swindled.
Hot Take: Significant Sentence Handed Down for Bitsonic Executives
The sentencing of the Bitsonic CEO and CTO to eight years in prison reflects the severity of their crimes and sends a strong message to the crypto community. The manipulation of prices and trading volume, along with the theft of customer funds, undermines trust in virtual asset exchanges. The court’s decision highlights the need for accountability and the consequences that await those who engage in fraudulent activities within the cryptocurrency industry.
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