CEO of Bitsonic Crypto Exchange Receives 7-Year Prison Sentence
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Bitsonic CEO Jinwook Shin has been handed a seven-year incarceration for crypto market manipulation and the inflation of the exchange’s operational profits. This misconduct resulted in the illegal removal of more than 10 billion won from customers, which translates to about $7.5 million.
Bae Mo, who served as the Chief Technology Officer, was found guilty of disrupting business affairs and consequently received a one-year prison term.
Prolonged Incarceration for Bitsonic Crypto Exchange CEO
A recent report from South Korea suggests that prosecutors have charged Shin with not running the exchange diligently in the interest of his clientele.
“He falsely presented the exchange to be functioning properly and deceived a multitude of victims, amassing over 10 billion won over an extended period.”
Additional allegations by the prosecutor include Shin’s involvement in manipulating the price of Bitsonic’s proprietary token from January 2019 to May 2021.
Read more: 11 Top Altcoin Exchanges for January 2024 Crypto Trades
Moreover, CTO Mo is alleged to have obstructed trading activities, aiding Shin in profiting illegitimately from the exchange. The presiding judge underscored the damage caused by Mo’s actions to the crypto exchange industry:
“He devised and deployed a program that sabotaged the exchange’s fundamental operations, resulting in a significant decline of confidence in virtual asset trading platforms.”
Shin was detained based on these allegations about half a year before being handed down his prison term.
Arrest of Bitsonic CEO Occurred the Previous Year
BeInCrypto reported in August 2023 that Shin faced multiple charges, including document forgery, among other legal violations. The exchange’s Vice President also faced indictments for obstructing business practices.
The Seoul prosecutor’s office’s cyber division apprehended Shin at age 40, with reports at the time suggesting that he had manipulated computer systems to falsely increase certain cryptocurrencies’ prices and trading volumes.
Read more: 7 Leading Crypto Exchanges With the Smallest Spreads in 2023
Speculation also encompasses the possibility that the ex-Binance CEO may face an extended jail term. Changpeng “CZ” Zhao is awaiting his sentence after being charged with breaching the Bank Secrecy Act.
In November 2023, BeInCrypto reported that the Department of Justice is pushing for strict conditions ahead of sentencing, remarking that the,
“United States may advocate for any length of sentence, up to the maximum ten-year statutory threshold.”
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