Copy link
Increase text size
Decrease text size
Link copied

Executives of South Korean crypto exchange facing fraud charges

Seoul, South Korea / Image by manu zoli from Pixabay

Wed, 09 Dec 2020, 09:26 am UTC

South Korean authorities have formally pressed charges against three executives of Coinbit, which was once the country’s third-largest cryptocurrency exchange. The company’s chairman and two yet unnamed officers are suspected of price manipulation.

Authorities have decided to file charges of fraud and forgery against Coinbit chairman Choi Mo and two unnamed executives, Cointelegraph reported. The announcement was made by the Seoul Metropolitan Police Agency’s 5th Investigation Team, which also recommended the filing of the charges.

South Korean prosecutors are already preparing the case against the executives who allegedly participated in market manipulation “on multiple occasions,” according to Bitcoin.com. Police accuse the three of using a “ghost account” to artificially increase transaction volume and manipulate the prices of cryptocurrencies.

Korea media outlets, which first reported the news, did not specifically name the Coinbit chairman. As the police investigation is still ongoing, reports simply refer to the top executive as “Mr. A” as required by South Korean law.

Authorities accuse the Coinbit chairman and the two executives of engaging in a practice called wash trading. The three people reportedly earned over 100 billion won, which was equivalent to around $84 million at that time, in profits using the scheme.

Wash trading is a form of market manipulation where a trader simultaneously buys and sells the same financial asset with the purpose of creating an artificial increase in trading volume, which could mislead other investors that the asset is in greater demand. It is illegal not only in South Korea but also in most jurisdictions.

Authorities raided and seized Coinbit’s headquarters in Gangnam-gu and Seoul on August 27. However, Coinbit maintained that the company itself did not engage in anything illegal.

“Coinbit has not committed any illegal acts so far and has not been suspended by this time,” the crypto exchange said in a statement made on the same week as the raid. “No one, including Coinbit’s chairman, has been indicted or seized by the police on fraud charges. This case was a personal crime committed by some employees who had joined the company for their financial interests.”

In South Korea, engaging in fraud via unfair trading practices that such as giving inaccurate market prices can carry a prison sentence of between five years to life if the profits gained from the fraudulent activity reach more than 5 billion KRW or $4.46 million.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Moses
  • 2020.12.12 07:16:36
I am a crypto currency trader and i make over 200% daily trading all day and night and also by passing even when market is down and others are resting , If you are interested, I can teach you how to trade and also help you achieve your goal in life with crypto i can turn 4 btc into $340,000.00 in less than four weeks, now that bitcoin has high prices...please note that crypto currency trading is bitcoin unlike binary and Forex,bitcoin is traded for altcoins , bitcoin can also be traded for Ethereum, Litecoin, United States Dollar, Ripple, Euro, IOTA, and other stocks you need to put to trading on a daily basis with a very correct strategy and a target of profit as you get into the trading market with your capital. Also you can reach to me if you are new to bitcoin and to give you more info and guideline on how to invest smartly, this is opportunity life time knocking on your door ???? inbox me for more info....contact me on WhatsApp +1(206)-742-5358 we bless the lord for a year well spent .
  • 0
  • ·
  • 0
  • susieb09
  • 2020.12.11 12:23:11
A lot of people who suffer losses from schemes like these don't usually speak up. But I'm happy that coinbit will be facing charges as I was one of those who suffered huge losses to this company. It has been hard losing a lot of money to Cryptocurrency trading. My money has now been recovered, thanks to a recovery pro. You can reach me to share my experience and how I had my money recovered. Susiebell2009 at gmail, com
  • 0
  • ·
  • 0
  • rtahan
  • 2020.12.09 19:27:52
One must be careful with fake cryptocurrencies and possible fraud instances. This wouldn't happen with https://www.mintme.com/ it's as reliable as they come.
  • 0
  • ·
  • 0
  • rtahan
  • 2020.12.09 19:27:41
One must be careful with fake cryptocurrencies and possible fraud instances. This wouldn't happen with https://www.mintme.com/ it's as reliable as they come.
  • 0
  • ·
  • 0
More
  • Bitcoin (btc) $56,781.00 (+4.00%)
  • Ethereum (eth) $3,428.87 (+4.37%)
  • Binance Coin (bnb) $640.11 (+1.64%)
  • Dogecoin (doge) $0.617296 (-8.86%)
  • XRP (xrp) $1.65 (+15.03%)
  • Bitcoin (btc) $56,781.00 (+4.00%)
May 6, 2021 (Thursday)
02:30
Crypto Market Sentiment On May 06: Market In "Greed"
May 5, 2021 (Wednesday)
10:55
BTC Surges by 1.0% Within 5 Mins, Marking 55,805.6 USDT
May 4, 2021 (Tuesday)
23:49
BTC Drops by 1.01% Within 5 Mins, Marking 53,401.81 USDT
18:42
BTC Surges by 1.02% Within 5 Mins, Marking 54,642.47 USDT
14:37
BTC Drops by 1.38% Within 5 Mins, Marking 54,500.01 USDT
14:30
BTC Drops by 1.66% Within 5 Mins, Marking 55,268.1 USDT
00:52
BTC Drops by 1.51% Within 5 Mins, Marking 55,892.58 USDT
May 3, 2021 (Monday)
20:36
BTC Drops by 1.14% Within 5 Mins, Marking 56,646.7 USDT
13:51
BTC Drops by 1.22% Within 5 Mins, Marking 57,468.02 USDT
07:32
BTC Surges by 1.06% Within 5 Mins, Marking 58,600.82 USDT
01:41
BTC Surges by 1.0% Within 5 Mins, Marking 58,266.9 USDT
May 2, 2021 (Sunday)
03:40
BTC Drops by 1.09% Within 5 Mins, Marking 56,520 USDT
Apr 30, 2021 (Friday)
20:06
BTC Drops by 1.06% Within 5 Mins, Marking 56,424.32 USDT
10:00
XRP Tops List Of Crypto Net Inflow With $132.86 Mln In Past 18 Hours
04:39
TriumphX, NFT Marketplace Sole-X Beta Version Launched
02:02
Data Summary Of Boboo.com's Perpetual Contract: April 30
02:00
BTC Tops List Of Crypto Net Outflow With $203.08 Mln In Past 10 Hours
00:30
BTC Surges by 1.15% Within 5 Mins, Marking 53,749.11 USDT
Apr 29, 2021 (Thursday)
20:21
BTC Surges by 1.14% Within 5 Mins, Marking 53,070.31 USDT
18:06
BTC Surges by 1.06% Within 5 Mins, Marking 52,646.31 USDT
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft