The CEO of the cryptocurrency exchange Bitsonic, Jinwook Shin, who is under investigation for stealing users’ investments and deposits, was detained by South Korean Police on August 7, according to Chosun Biz.
According to prosecutors, Shin allegedly stole the equivalent of $7.5 million from exchange users by manipulating the prices and trading volume of cryptocurrencies on Bitsonic from January 2019 to May 2021. Additionally, the vice president of Bitsonic will be tried without pretrial detention.
Even after liquidity issues arose and Bitsonic halted withdrawals, the Bitsonic CEO continued to offer cryptocurrencies to new customers.
The investigation, which began in 2021, also alleges that Mr. A, the company’s vice president, ran a program to purchase the cryptocurrency held by Shin on the exchange system. Shin allegedly manipulated using a Singapore-based paper company he founded.
In August 2021, Bitsonic ceased operations, citing “internal and external issues.” During the same time frame, authorities in South Korea shut down 11 local cryptocurrency platforms for fraud.
South Korea has recently established an interagency investigation unit to combat cryptocurrency crimes in response to a rise in illicit market activity and the need to safeguard investors.
