South Korea’s Bitsonic chief executive arrested over alleged $7.6m asset theft

The chief executive of South Korea-based cryptocurrency exchange Bitsonic, Jinwook Shin, was arrested on suspicion of stealing assets worth 10 billion won ($7.6 million). Local media reported.

\n\n

According to the case materials, from January 2019 to May 2021 Shin allegedly inflated prices and trading volumes on the exchange to conceal mounting losses.

\n\n

Shin allegedly siphoned user deposits totaling 10 billion won ($7.6 million), proceeds from the sale of cryptocurrencies.

\n\n

The prosecutors also charged Bitsonic’s chief technology officer with obstructing official duties, further complicating the platform’s legal troubles.

\n\n

Back in July, the government of South Korea launched a division to combat cryptocurrency crime. The initiative is driven by a surge in illicit activity in the digital-asset market and a lack of investor protection.

\n\n

Authorities also urged crypto exchanges to strengthen compliance controls.