South Korean CEO & executive director of a fraudulent cryptocurrency exchange are Imprisoned by a branch of the Supreme Court in Seoul for their illicit roles in illegal trading activity on their platform.
In line with a recent official report by the native media outlet Blockinpress, both the executives from a trading platform named Komid had their appeals rejected by the supreme court. One will serve 3 years, while the other will serve 2 years in jail. Choi and Park, whose first names aren’t being revealed by the prosectors, are accused of fake trading volume data for their lame trades conducted on their platform. Doing so boosts reputation among the cryptocurrency community in South Korea, but it appears they were caught within the act of manipulation.
Their scam worked by permitting users to deposit Korean won along with another majority of crypto assets in exchange for cryptocurrency, but it also filled the platform up with forged data regarding fraudulent token listings.
The trading activity reported by Komid raised suspicion from the authorities – it had reported $5 Mln in transactions. These volumes give the fabulous appearance of a legit-looking trading exchange, but the court believes that the would-be businessmen were employing a software bot to get large but yet meaningless trading activity onto the platform.
The judge ‘Ahn Seong-Joon,’ overseeing the lawsuit, added:
“Mr. Choi along with others have repeatedly committed fraud for a substantial period of time targeting an outsized number of anonymous victims. Mr. Choi as well as others used the point balance that was falsely entered for the particular cryptocurrency transaction.”
South Korean 3rd leading cryptocurrency exchange, Coinbit, was recently seized by police following allegations of fraud. Consistent with a report by South Korean native reporting outlet Seoul Shinmun, 99% of transaction volume on the exchange were also faked via wash trading.