CEO of South Korean exchange Bitsonic, Shin Jinwook, has received an extended sentence after authorities uncovered a fraud scheme amounting to at least 100 million won.
Extended Sentence for Shin Jinwook
On August 5, Judge Seong Gi-jun of the 1st Criminal Division of the Western Branch of the Daegu District Court sentenced Shin to six months in prison, in addition to his initial seven-year sentence from 2023. Shin was indicted on fraud charges involving the exchange's native token, Bitsonic Coin (BSC).
Fraud Scheme and Market Manipulation
Shin allegedly manipulated the trading of the BSC token in an effort to inflate its price, misguiding investors. He reportedly used funds along with false Korean won from buybacks to purchase Bitcoin (BTC) and Ethereum (ETH). His fraudulent activities resulted in defrauding customers by inflating trading volumes and market prices, which amounted to 160 million won.
Closure of Bitsonic Exchange
Launched in April 2018, the Bitsonic exchange ceased operations in August 2021, citing 'internal and external issues.' Customers expressed dissatisfaction with liquidity problems and the inability to withdraw funds, which amplified the situation.
The case of Shin Jinwook and the closure of Bitsonic highlights the significant risks associated with cryptocurrency investments and the need for stringent regulation.
