Bitsonic's CEO, Jinwook Shin, has been arrested by the South Korean Police for allegedly stealing $7.5 million of users' funds. The arrest took place on August 7 and Shin is currently under investigation. According to local news outlet Chosun Biz, Bitsonic's vice president will also be tried for the same offense, but will not be detained prior to the trial.
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Bitsonic CEO arrested for fraud. Bitsonic CEO And VP To Face Trial For Alleged Market Manipulation And Fraud-related Charges
South Korean prosecutors have accused Shin of manipulating the price and trading volume of cryptocurrencies on Bitsonic between January 2019 and May 2021. The alleged false market manipulations resulted in the CEO stealing approximately $7.5 million worth of user deposits from the exchange. Shin is also accused of using a shell company in Singapore for his market manipulation activities and continuing to offer crypto to new clients even after Bitsonic encountered liquidity issues and suspended withdrawals. The investigation, which began in 2021, also involves the exchange's vice president, referred to as Mr. A, who allegedly conducted a program to purchase Shin's crypto holdings on Bitsonic's system. Bitsonic suspended withdrawals in August 2021, citing external and internal issues via its Telegram channel. As a result of these incidents, the Financial Services Commission (FSC) of South Korea shut down 11 local cryptocurrency exchanges for fraud-related activities. Bitsonic CEO arrested for fraud.
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 the country's cryptocurrency exchanges. The unit, which includes 30 investigators from seven government agencies, aims to protect investors by tackling illegal activities in the cryptocurrency market. Additionally, the Seoul Southern District Prosecutors Office plans to establish a joint digital asset crime investigation unit called the Joint Investigation Centre for Crypto Crimes. This unit will streamline the investigative process for tracking crypto-related crimes by deploying experts on crime detection, handling, and analysis. In June, South Korea's National Assembly passed the country's first legislation to safeguard crypto investors by regulating trade practices and eliminating illicit market activities.
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