The Arrest of Bitsonic CEO for Stealing $7.5 Million of Users’ Funds
The South Korean Police have arrested Jinwook Shin, CEO of South Korea-based crypto exchange Bitsonic, who is being investigated for stealing $7.5 million of users’ funds.
- Shin allegedly manipulated the price and trading volume of cryptocurrencies on Bitsonic from January 2019 to May 2021.
- Using a shell company in Singapore, Shin engaged in market manipulation activities.
- Shin continued offering crypto to new clients even after Bitsonic encountered liquidity issues and suspended withdrawals.
- The investigation involves Bitsonic’s vice president, who allegedly conducted a program to purchase Shin’s crypto holdings.
- As a result of the false market manipulations, the CEO stole approximately $7.5 million of user deposits.
South Korean Law Enforcement Agencies Ramps Up Crypto Crime Fighting Efforts
The South Korean government has established an interagency investigation unit to combat fraudulent activities in crypto exchanges.
- The special investigation unit aims to fight crypto crimes and protect investors.
- A joint digital asset crime investigation unit, including 30 investigators from seven government agencies, has also been established.
- The unit will accelerate and streamline the investigative process for tracking crypto-related crimes.
- The government passed legislation to safeguard crypto investors, regulating trade practices and eliminating illicit market activities.
- These efforts are part of a larger initiative to protect investors and combat crypto-related fraud in South Korea.
Hot Take: Increased Regulatory Measures and Investigation Units Signal South Korea’s Commitment to Combat Crypto Crimes
The arrest of the Bitsonic CEO and the establishment of investigation units demonstrate South Korea’s determination to crack down on fraudulent activities in the crypto market. With legislation in place to protect investors and regulatory measures being implemented, South Korea is taking significant steps to safeguard its crypto industry. These actions should help promote trust and confidence among crypto investors in the country.
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