South Korean Crypto Exchange Bitsonic Execs Sentenced to Prison for Manipulating Prices
A court in Seoul has sentenced executives from South Korean crypto exchange Bitsonic to jail for their involvement in price manipulation and subsequent profits of $7.5 million. The CEO of Bitsonic received a seven-year prison term, while the chief technology officer was sentenced to one year. The CEO was found guilty of fraud and falsifying official documents. It is unclear whether they will appeal the verdict and sentence. The judge claimed to have been lenient due to an agreement reached between the CEO and the victims who suffered the most significant losses. The court heard that Bitsonic used sophisticated computer programs to deceive investors and manipulate the prices of self-issued altcoins. They also created a “paper company” to produce inflated sales and profit data. Over 100 investors fell victim to the fraudulent operation, with the CEO pocketing the majority of their deposits. In September 2021, South Korea introduced a law requiring crypto exchanges to obtain operating permits and partner with domestic banks for verified trading services.