Bitsonic CEO Arrested For Stealing $7.5M From Users In South Korea

The vice president of the cryptocurrency exchange will also go on trial without being held in custody first.

South Korean authorities reportedly detained Jinwook Shin, the CEO of cryptocurrency exchange Bitsonic, on 7 August. Shin is suspected of taking investments and deposits from exchange users, according to the South Korean news outlet Chosun Biz. Without a pretrial hearing, the vice president of Bitsonic will also be tried.

Prosecutors claim that between January 2019 and May 2021, Shin engaged in deceptive trading volume and price manipulation on Bitsonic, defrauding users of the exchange of the equivalent of 10 billion won ($7.5 million).

Even after Bitsonic ceased accepting withdrawals due to liquidity problems, its CEO kept promoting cryptocurrency to potential customers.

The inquiry, which began in 2021, also claims that Mr. A, the corporate vice president, ran a programme to buy the cryptocurrency that Shin had on the exchange system. Shin is accused of using a paper business he founded in Singapore as a tool for manipulation.

Operations at Bitsonic were suspended in August 2021 due to “internal and external issues.” 11 local cryptocurrency platforms were shut down by South Korean police during that time for fraud.

In response to a spike in illegal activity in the market and the requirement for investor safety, South Korea recently established an interagency investigation team to combat cryptocurrency crimes.