South Korea arrests Bitsonic CEO for allegedly stealing $7.5M of users’ money

Wednesday, 9 Aug 2023

Cointelegraph By David Attlee

Original Article

The vice president of the crypto exchange will also be put on trial without preliminary detention.


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According to South Korean news outlet Chosun Biz, Jinwook Shin, the CEO of crypto exchange Bitsonic — who is under investigation for stealing investments and deposits from exchange users — was arrested by South Korean police on Aug.7. The vice president of Bitsonic will also be put on trial without preliminary detention.

According to prosecutors, from January 2019 to May 2021, Shin allegedly falsely manipulated the prices and trading volume of cryptocurrency on Bitsonic, stealing the equivalent of 10 billion won ($7.5 million) from exchange users.

Even after liquidity issues began and Bitsonic stopped withdrawals, its CEO continued offering crypto to new clients.

Related: South Korea to pilot CBDC in one of these three cities, not Seoul

The investigation, which started in 2021, also accuses the company vice president, referred to as Mr. A, of running a program to purchase the cryptocurrency held by Shin on the exchange system. In his manipulation, Shin allegedly used a paper company he opened in Singapore.

Bitsonic halted operations in August 2021, citing “internal and external issues.” In the same period, South Korean police shut down 11 local crypto platforms for fraud.

South Korea has recently established an interagency investigation unit to combat cryptocurrency crimes, aiming to address a rise in illicit activities in the market and the need for investor protection.

Magazine: Deposit risk. What do crypto exchanges really do with your money?


Cointelegraph By David Attlee

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