According to the South Korean news agency Chosun WeJinwook Shin, CEO of crypto exchange Bitsonic – under investigation for stealing users’ investments and deposits – was arrested by South Korean police on August 7. Bitsonic’s vice president will also be tried pending trial.
According to prosecutors, from January 2019 to May 2021, Shin’s Incorrectly manipulated the prices and trading volume of cryptocurrencies on Bitsonicembezzling the equivalent of 10 billion won ($7.5 million) from users.
Even after cash flow issues surfaced and Bitsonic stopped withdrawing funds, its CEO continued to offer cryptocurrencies to new customers.
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The investigation, launched in 2021, also accuses the company’s vice president, Mr. A, of running a program to purchase Shin-held cryptocurrencies through the exchange system. For use, Shin allegedly used a paper company opened in Singapore.
Bitsonic ceased operations in August 2021, citing “internal and external problems”. During the same period, South Korean police shut down 11 local cryptocurrency platforms for fraud.
South Korea recently established interagency investigation unit Fighting cryptocurrencies-related crimes to address the increase in illegal activity in the market and the need to protect investors.
Translation of Walter Rizzo