- Jinwook Shin has been accused of stealing $7.5 million in client funds.
- According to prosecutors, Shin manipulated the price and trading volume of cryptocurrency on Bitsonic from January 2019 to May 2021.
- A vice president of the cryptocurrency exchange is also on trial.
South Korean police arrested the CEO of cryptocurrency exchange Bitsonic, Jinwook Shin, on Aug. 7, local news outlet Chosun Biz reported.
He is being investigated on charges of embezzling funds from users of the exchange. A vice president of Bitsonic is also scheduled to appear in court with him.
Prosecutors say that between January 2019 and May 2021, Shin manipulated the price and trading volume of crypto assets on the exchange. For his schemes, Shin allegedly used a company he started in Singapore. He managed to earn about 10 billion Korean won (about $7.5 million), prosecutors added.
When Bitsonic faced a liquidity shortage and stopped withdrawals, the exchange’s CEO continued to offer new customers to buy cryptocurrency, law enforcement officials allege.
Chosun Biz also reported that the company’s vice president was accused of running a program to buy cryptocurrency Shin owned on the exchange.
We previously reported that authorities uncovered a $330 million “Ponzi scheme” in South Korea at the end of May 2023.
South Korean authorities uncovered a $330 million “Ponzi scheme” in South Korea.