• South Korean authorities arrested Jinwook Shin, CEO of crypto exchange Bitsonic, on August 7th for allegedly misappropriating investments and deposits from users.
• Shin is accused of manipulating prices and trading volume to misappropriate 10 billion won ($7.5 million) from January 2019 to May 2021.
• Bitsonic announced shutting down its operations in August 2021 due to “internal and external issues” leading to the closure of 11 domestic cryptocurrency platforms for alleged fraudulent activities.
South Korean Authorities Arrest Crypto Exchange Chief
South Korean law enforcement has arrested Jinwook Shin, the CEO of cryptocurrency exchange Bitsonic, on August 7th for suspected multi-million dollar fraud charges.
Suspected Misappropriation of Funds
Shin is being investigated for allegedly embezzling investments and deposits from users of the exchange. According to reports, he is accused of fraudulently manipulating cryptocurrency prices and trading volume on Bitsonic which led to a misappropriation of approximately 10 billion won ($7.5 million) from investors between January 2019 and May 2021.
Bitsonic Shuts Down Operations
Bitsonic announced shutting down its operations in August 2021 due to “internal and external issues” leading to the closure of 11 domestic cryptocurrency platforms for alleged fraudulent activities.
Investigation by South Korean Authorities
The prosecution stated that Shin operated Bitsonic but did not purchase cryptocurrency during the same period despite liquidity problems and suspension of withdrawals on the platform according to Seoul’s cyber crime department.
The investigation into Shin’s activities is ongoing while other cryptocurrencies platforms are under scrutiny as well due to their potential involvement with fraudulent activities in South Korea.