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Jinwook Shin is facing several serious charges. The prosecutor’s office alleges that from January 2019 through May 2021, the CEO manipulated the exchange’s computer systems to artificially inflate the rates and trading volume of virtual assets to hide the company’s shaky financial position. If the prosecution is to be believed, Shin withdrew user assets worth 10 billion won (about $7.6 million), which was preceded by selling cryptocurrency products to unsuspecting customers. Law enforcers believe that the CEO wanted to mask mounting losses while the exchange could not meet investor demands to withdraw funds.
The Bitsonic executive has also been charged with misconduct in office when he served as vice president of technology development at Bitsonic. This has exacerbated the legal challenges the platform now faces.
The prosecutor’s office argues that the situation that has arisen not only undermines users’ trust in Bitsonic, but also jeopardizes the credibility of the entire cryptocurrency market.
South Korean authorities recently formed a special investigative unit to combat cryptocurrency crimes. The Korea Banking Federation has unveiled new rules to protect crypto asset users and combat money laundering.