Bitsonic CEO, a prominent crypto exchange, has been apprehended by South Korean law enforcement according to a South Korean news outlet. The arrest follows a prolonged investigation into the alleged embezzlement of users’ funds. Additionally, the vice president of Bitsonic is also facing legal action without preliminary detention, further intensifying the situation
Arrest of Bitsonic CEO and Vice President
On August 7, South Korean police took Jinwook Shin, the CEO of Bitsonic, into custody. This was after a thorough investigation into his alleged involvement in misappropriating investments and deposits from users of the exchange. Also, this move marks a crucial step in the ongoing case that has garnered attention both nationally and internationally.
In parallel, the vice president of Bitsonic is set to undergo a trial without the need for preliminary detention, underscoring the seriousness of the accusations.
Notably, the investigation into the Bitsonic case has cast a shadow over not only the CEO but also the company’s vice president, known as Mr. A. Further allegations point to his orchestration of a program designed to purchase cryptocurrency held by Shin on the exchange system.
This intricate manipulation allegedly involved the use of a paper company registered in Singapore. It further adds a layer of complexity to the unfolding drama.
Allegations of Manipulation and Theft
Prosecutors have unveiled damning evidence suggesting that from January 2019 to May 2021, Jinwook Shin orchestrated a series of deceptive actions aimed at pilfering funds from Bitsonic users. The tactics reportedly included falsely inflating cryptocurrency prices and trading volumes within the exchange.
As a result, an astonishing amount totaling 10 billion won (equivalent to $7.5 million) was reportedly siphoned from unsuspecting investors.
Unabated Activity Despite Liquidity Woes and Broader Implications
Interestingly, Jinwook Shin seemingly continued his audacious scheme by offering cryptocurrencies to new clients. This is irrespective of the liquidity challenges that plague Bitsonic and the exchange suspended withdrawal services. This audacity has only served to amplify the outrage surrounding his actions, as the financial well-being of countless users was jeopardized.
Furthermore, Bitsonic’s operations were abruptly halted in August 2021, citing a mix of internal and external challenges. This move aligned with the larger crackdown on fraudulent activities in the South Korean crypto landscape. Law enforcement simultaneously shut down 11 local crypto platforms as a result.
These actions underscored the growing need for robust investor protection and the urgency to address the escalating illicit activities in the market.
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