CEO of Bitsonic Sentenced to Seven Years for Fraud

The CEO of South Korean cryptocurrency exchange Bitsonic, Jinwook Shin, has been sentenced to seven years in prison for his involvement in a fraudulent scheme amounting to 10 billion won ($7.5 million), according to local media.

Court documents reveal that from January 2019 to May 2021, Shin artificially inflated trading volumes on the exchange and the price of the native token, Bitsonic Coin, to conceal mounting losses.

He employed a buyback method, moving the coin between his wallets, and created fake points in Korean won to simulate cash inflows on the platform.

Special software was developed to falsify transactions, managed by Bitsonic’s vice president, identified as Bae, who was sentenced to one year in prison for his role.

In total, Shin and Bae defrauded 101 investors, misappropriating the acquired assets.

Back in 2021, the once-leading South Korean bitcoin exchange Bitsonic ceased operations, citing “internal and external issues.” Two years later, the arrest of top executives and the charges against them came to light.

In late July 2023, the South Korean government launched a unit to combat cryptocurrency crimes. This initiative was prompted by a surge in illegal activities in the digital asset market and the lack of legal protection for investors.

Authorities have also urged crypto exchanges to strengthen compliance controls.