The Arrest of Bitsonic’s CEO: A Shocking Development
On Aug.7, South Korean police arrested Jinwook Shin, the CEO of crypto exchange Bitsonic, who is under investigation for stealing investments and deposits from exchange users, as reported by Chosun Biz. The vice president of Bitsonic will also be put on trial without preliminary detention.
Manipulating Prices: The Alleged Crime
Prosecutors claim that from January 2019 to May 2021, Shin falsely manipulated the prices and trading volume of cryptocurrency on Bitsonic. This alleged manipulation led to the theft of 10 billion won ($7.5 million) from exchange users.
Bitsonic’s Dubious Operations
Even after liquidity issues began and Bitsonic stopped withdrawals, the CEO continued offering crypto to new clients. In his manipulation, Shin allegedly used a paper company opened in Singapore.
The Investigation & Other Shut Downs
The investigation, which started in 2021, also accuses the company vice president, known as Mr. A, of participating in the fraud. In August 2021, South Korean police shut down 11 local crypto platforms for fraud, including Bitsonic.
South Korea’s Fight Against Cryptocurrency Crimes
South Korea has recently established an interagency investigation unit to combat cryptocurrency crimes. This move aims to address a rise in illicit activities in the market and the need for investor protection, reflecting South Korea’s commitment to uphold integrity within the rapidly evolving cryptocurrency landscape.
The arrest of Bitsonic’s CEO and the charges against its vice president are a significant step in South Korea’s crackdown on cryptocurrency fraud. These actions send a clear message to the industry that manipulation and deceit will not be tolerated. The establishment of the interagency investigation unit further signifies the government’s resolve to protect investors and ensure a transparent and fair cryptocurrency market. The world will be watching as this high-profile case unfolds, shedding light on an industry that’s still grappling with regulatory compliance and ethical conduct.