{"id":89658,"date":"2024-02-06T21:56:40","date_gmt":"2024-02-07T02:56:40","guid":{"rendered":"https:\/\/ifintechworld.com\/?p=89658"},"modified":"2024-02-06T21:56:42","modified_gmt":"2024-02-07T02:56:42","slug":"south-korean-crypto-exchange-bitsonic-execs-jailed","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=89658","title":{"rendered":"South Korean Crypto Exchange Bitsonic Execs Jailed"},"content":{"rendered":"
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A Seoul court jailed South Korean crypto exchange Bitsonic executives for manipulating crypto prices \u2013 and profiting to the tune of $7.5 million.<\/p>\n

Newsis reported that the Seoul Eastern District Court sentenced the CEO of the Bitsonic trading platform to seven years in prison.<\/p>\n

South Korean Crypto Exchange Bitsonic Case: Judge Gives \u2018Lenient\u2019 7-year Sentence<\/h2>\n

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The same court found the Bitsonic chief technology officer, surnamed Bae (43), guilty of lesser charges. Bae was sentenced to one year in prison.<\/p>\n

The CEO, Shin Jin-wook (40), was found guilty of fraud and the falsification of official documents.<\/p>\n

Bitsonic CEO Shin Jin-wook speaking during an interview in 2019. (Source: Hashnet\/YouTube)<\/figcaption><\/figure>\n

South Korean law stipulates that defendants can appeal guilty verdicts and sentences at the High Court and the Supreme Court.<\/p>\n

Shin and Bae have not yet indicated if they will seek to overturn the Seoul District Court\u2019s verdict and sentencing.<\/p>\n

However, Seoul District Court Lee Jong-chae claimed that he had been lenient with the sentencing as Shin had \u201creached an agreement with two of the victims who suffered the largest amount of damages.\u201d<\/p>\n

Judge Lee added that neither Shin nor Bae had a history of committing similar types of crime \u2013 also a factor in sentencing. Lee explained:<\/p>\n

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\u201cUnder the pretense that the exchange was operating normally, [Shin] collected over [$7.5 million] from several victims over a long period of time. This was a fraudulent operation.\u201d<\/p>\n<\/blockquote>\n

How Did Bitsonic Chiefs Dupe Victims?<\/h2>\n

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Bitsonic began tricking victims into making risky crypto investments in February 2019, prosecutors explained.<\/p>\n

Shin and Bae created sophisticated computer programs that fooled investors into believing they were running a bona fide crypto exchange.<\/p>\n

However, they also created software that let them manipulate the prices of certain self-issued altcoins.<\/p>\n

This software drove up prices by automatically buying and selling Bitsonic coins on the exchange.<\/p>\n

But all the software made these purchases using wallets that actually belonged to Shin.<\/p>\n

The court also heard that Shin created a \u201cpaper company\u201d that produced \u201cinflated\u201d Bitsonic sales and operating profit data.<\/p>\n

The court heard that 101 crypto investors believed the exchange was above board, and sent the firm fiat and crypto holdings.<\/p>\n

Shin \u201cpocketed\u201d the lion\u2019s share of these crypto and fiat deposits, prosecutors told the court.<\/p>\n

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South Korea will kick off a test run to extend the trading hours of its currency on. Here\u2019s what to know about the upcoming changes and the potential implications of the shift https:\/\/t.co\/U4PYOBxxyK<\/p>\n

\u2014 Bloomberg Economics (@economics) February 4, 2024<\/a><\/p>\n<\/blockquote>\n

Under a law introduced in September 2021, every South Korean crypto exchange must obtain an operating permit.<\/p>\n

If they wish to offer fiat on\/off ramp services, trading platforms must also partner with domestic banks that offer social security number-verified trading.<\/p>\n

In 2023, a judge jailed the head of the bogus crypto exchange V Global for 25 years, after convicting him of defrauding victims out of $2.3 billion.<\/p>\n<\/p><\/div>\n