Bitsonic CEO’s arrest in South Korea over alleged misappropriation and deceitful dealings involving investments and deposits, with $7.5M fraud.
In a startling twist of events, the chief executive officer of Bitsonic, a well-known cryptocurrency exchange, has been detained by law enforcement authorities in South Korea. The apprehension carried out on August 7, forms part of an ongoing inquiry into claims of misappropriation and deceitful dealings related to users’ investments and deposits on Bitsonic.
Sources linked to the South Korean news outlet Chosun Biz have disclosed that the arrest stems from accusations against Jinwook Shin. It is alleged that Shin orchestrated the manipulation of cryptocurrency prices and trading volumes on Bitsonic from January 2019 to May 2021. These purported activities led to the staggering vanishing of nearly 10 billion won, equivalent to roughly $7.5 million, from the funds of unsuspecting exchange users.
Bitsonic Scandal: Deception Unveiled In South Korea
Even as Bitsonic faced liquidity challenges and suspended withdrawal operations, CEO Jinwook Shin shockingly persisted in luring fresh clientele with the promise of lucrative cryptocurrencies. This dogged pursuit of deception paints a disturbing portrait of the lengths the CEO purportedly went to cloak his illicit undertakings.
An unfolding narrative goes beyond CEO Shin’s involvement. The 2021 investigation has brought to light that Mr. A, the vice president of Bitsonic, played a role in masterminding a scheme to obtain cryptocurrency held by Shin within the exchange’s system. Reports indicate that Shin employed sophisticated tactics, including establishing a paper company in Singapore, to execute his crafty maneuvers.
The wheels of Bitsonic’s operations broke in August 2021, attributing the suspension to a blend of “internal and external issues.” This sudden cessation mirrored the crackdown by South Korean authorities on 11 local cryptocurrency platforms, all accused of engaging in fraudulent activities during the same period.
Acknowledging the rising prevalence of cryptocurrency-linked transgressions, South Korea has taken proactive strides by instituting an interagency investigative unit. This collaborative endeavor seeks to rein in the surge of unlawful activities within the cryptocurrency domain while fortifying protective measures for investors.