Bitsonic CEO Gets 8 Years in Prison for Crypto Fraud and Theft Scandal
Crypto News – In a significant legal ruling, a South Korean district court has handed down a severe sentence to the CEO and CTO of the cryptocurrency exchange Bitsonic. Chief Judge Lee Jong-chae, presiding over the trial at the Seoul Eastern District Court Criminal Agreement Division 12 on February 6, imposed an eight-year prison term on Bitsonic CEO Jinwook Shin, while the CTO, identified as Bae, received a one-year sentence.
The verdict comes after Shin was found guilty of orchestrating a sophisticated scheme to manipulate cryptocurrency prices and trading volume on Bitsonic between January 2019 and May 2021. Employing the buyback method, Shin artificially inflated the value of Bitsonic Coin (BSC) by repurchasing a significant quantity of the token.
Additionally, Shin falsified Korean Won points within the Bitsonic system, creating a deceptive impression of substantial deposits being made to the exchange. However, these actions were aimed at luring investors into the platform, from whom Shin ultimately misappropriated cash and cryptocurrency deposits totaling 10 billion won ($7.5 million). The court charged Shin with multiple offenses, including fraud, falsification of records, obstruction of business by computer, and forgery.
Judge Lee Jong-chae lamented the severe damage inflicted upon trust in virtual asset exchanges, emphasizing the betrayal of trust between operators and users. Despite the extensive harm caused, Shin exhibited no remorse and evaded responsibility, aggravating the impact of his crimes.
Meanwhile, Bae, the CTO, faced charges related to the creation and operation of a program facilitating Shin’s fraudulent activities. By exploiting his position within the exchange, Bae compromised its essential information processing functions, thereby enabling Shin to execute the buyback method. Judge Lee highlighted that more than 10 billion won had been unlawfully obtained from numerous victims due to Bae’s actions.
The arrest of Shin by South Korean authorities in August 2023 marked a pivotal moment in the investigation, occurring two years after Bitsonic ceased its operations citing “internal and external issues.”
This legal outcome underscores the imperative for stringent regulatory measures within the cryptocurrency industry to safeguard investors and maintain trust in digital asset exchanges.
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