The CEO of the cryptocurrency exchange Bitsonic, Jinwook Shin, has been arrested by the South Korean police on August 7th, as reported by the South Korean news outlet Chosun Biz. He is currently under investigation for allegedly embezzling investments and deposits from users of the exchange. The vice president of Bitsonic will also face trial but will not be held in custody.
According to information provided by prosecutors, Shin is accused of manipulating the prices and trading volumes of cryptocurrencies on Bitsonic from January 2019 to May 2021, resulting in the theft of approximately 10 billion won (7.5 million USD) from exchange users. Even after liquidity issues arose and Bitsonic suspended withdrawals, Shin continued to provide cryptocurrencies to new customers.
The investigation, which began in 2021, also implicates the company’s vice president, referred to as Mr. A, who allegedly operated a cryptocurrency purchasing program controlled by Shin within the exchange system. During his manipulation efforts, Shin is alleged to have utilized a shell company he established in Singapore.
Bitsonic temporarily ceased operations in August 2021, citing “internal and external issues.” During the same period, the South Korean police shut down 11 local cryptocurrency platforms for fraudulent activities.
It’s worth noting that South Korea has established a cross-agency investigative unit to combat cryptocurrency-related crimes, aiming to address the increasing instances of unlawful activities in the market and to safeguard investor interests.