Top managers of major crypto exchanges are sentenced to lengthy prison sentences

The CEO and CTO of the South Korean cryptocurrency Exchange Bitsonic gets a hefty prison sentence Judge the Korean dish. Both officials jointly stole $8 million in customer funds and violated trust between investors and trading platforms in the Asian country.

CEOs of major crypto exchange Bitsonic receive long prison sentences

Bitsonic is one Cryptocurrency Trading platform in South Korea founded in April 2018. The exchange also operates its own coin, the Bitsonic Coin (BSC). Owners of this coin receive a portion of trading fees from the exchange. The trading platform mainly focuses on trading Crypto and KSW (South Korean Won) pairs.

CEO Jinwook Shin and CTO Bae receive prison sentences of seven and one year, respectively. The CEO is accused of fraudulently manipulating cryptocurrency prices and trading volumes on Bitsonic between 2019 and 2021 by using the so-called “Buyback method.“This means that Shin himself purchased large quantities of the BSC coin to artificially inflate the price.

However, it didn’t stop at manipulating the BSC rate. The CEO is also accused of falsifying capital flows to the trading platform. This created the illusion that the exchange received large amounts of money when it turned out to be the opposite.

By artificially increasing the trading volume on Bitsonic, Shin managed to attract many investors. In total, there were more than 100 investors who made large crypto deposits worth $7.5 million.

The judge judges strictly

The judge in South Korea has a clear opinion about Shin and Bae’s behavior. Trust between users, investors and central trading platforms is essential for a healthy economy. Bitsonic’s leaders managed to significantly damage that trust without showing any remorse, as the judge explained in his ruling:

“The trust in the exchange of virtual assets, which should be carried out on the basis of trust between operators and users, has been seriously damaged.” Nevertheless, they shirk responsibility and show no remorse, and even a significant part of the damage has not yet been repaired.” said the judge.

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