South Korean Exchange Bitsonic CEO Sentenced to 7 Years for $7.5 Million Theft
The CEO of Bitsonic, a local exchange in South Korea, has been sentenced to seven years in prison. The technology chief of Bitsonic also received a one-year sentence for stealing customer deposits valued at $7.5 million.
Charges of Fraud and Forging Records
According to local reports, the Seoul District Court charged Jinwook Shin, the CEO of Bitsonic, with fraud and forging records. The court found that Bitsonic fraudulently boosted trading volumes to deceive users and steal their deposits.
Fraudulent Scheme and Manipulation of the Market
The crime involved using Bitsonic’s capital to inflate the prices of its native coin, Bitsonic Coin (BSC). The fraudulent scheme lasted from January 2019 to May 2021. Fake cash deposits were also made into Bitsonic to create a false sense of legitimacy. The court stated that Shin coordinated a manipulation of the market by exploiting the exchange’s reputation.
No Remorse and Damaged Trust in Crypto Exchanges
The court noted that both Mr. A, one of Bitsonic’s vice presidents of technology, and Shin showed no remorse for their actions. This case has greatly damaged trust in crypto exchanges, according to the court.
Bitsonic’s False Partnerships and Closure
Shin reportedly falsely announced that Bitsonic had partnered with a foreign exchange to gain investors’ trust. However, when investors were unable to withdraw their funds, the fraudulent scheme collapsed. Bitsonic shut down in 2021 due to internal and external issues.
South Korea’s Crackdown on Crypto Fraud
South Korean authorities have been taking a tough stance against crypto fraud, targeting exchanges and other digital financial service providers. Recently, the CEO and some executives of the crypto investment platform Haru Invest were arrested for robbing customers of $830 million in cryptocurrency.
Importance of Vigilance in Crypto Investments
As more people embrace crypto, it is essential to thoroughly vet the platforms where funds are invested. Users must exercise caution and conduct due diligence to protect their investments.
Disclaimer
The information provided is not financial advice and is for educational and informational purposes only. Investing in cryptocurrencies involves high risk, so it is important to do thorough research and consider your own risk tolerance before making any investment decisions.
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