The CEO of Bitsonic, a South Korean crypto exchange, has been sentenced to a second jail term for another fraud charge. Shin Jin-wook, the CEO, is already serving a 7-year sentence for stealing $7.5 million worth of customer deposits. This time, he has been sentenced for his involvement in Bitsonic Coin (BSC) fraud.
According to a report by South Korean media outlet Digital Asset, Shin defrauded customers by inflating BSC trading volume and market price through false announcements. He used false KRW points obtained via buybacks to purchase Bitcoin and Ethereum from members, later converting them into cash and investing in unrelated firms. The CEO also falsified the lockup period, leaving investors unable to retrieve their investments or interest.
Judge Seong Gi-jun stated that although Shin was unable to reach an agreement with the victims, he admitted his wrongdoing and is reflecting on it. The sentencing conditions, including the motive and circumstances of the crime, were taken into consideration when determining the sentence.
In February 2024, Shin and Bitsonic’s chief technology officer, Bae, were sentenced to a combined 8 years in prison for manipulating crypto prices and profiting from them. The leniency of the sentence was attributed to Shin reaching an agreement with two of the victims who suffered the largest damages and the lack of prior criminal history for both defendants.
In South Korea, defendants have the right to appeal guilty verdicts and sentences at the High Court and the Supreme Court. Despite the legal process, the CEO of Bitsonic is facing significant jail time for his fraudulent activities.
The case of Bitsonic highlights the importance of transparency and accountability in the cryptocurrency industry. Investors should exercise caution and conduct thorough research before engaging with any crypto exchange to avoid falling victim to fraudulent schemes. The consequences of fraudulent activities in the crypto space can be severe, as demonstrated by the legal actions taken against the Bitsonic CEO.