There are many countries around the world that are in the process of embracing cryptocurrencies and its underlying blockchain technology. South Korea is one of those countries, as it has made quite a few headlines for its rather vibrant crypto market. Recently, however, trouble found its way to South Korea, as two leaders of the South Korean cryptocurrency exchange, Komid, were sentenced to jail.
According to the report published by the Korean crypto media outlet, Blockinpress, on the 18th of Jan, the perpetrators were sentenced to serve jail time on the grounds of faking exchange volume.
One of the two culprits was the CEO of the exchange himself, Choi, while the other was a company leader with an unspecified role. Choi received a sentence comprising of 3 years jail time, while the other leader was reportedly sentenced to 2 years imprisonment for fraud, embezzlement and misconduct.
The charges against the two outline a scheme of sorts, where the exchange managed to fake 5 million transactions for the purpose of inflating the volume. Which, according to the report, earned Komid a whopping $45 million. Furthermore, the exchange is also suspected of using a bot in order to automatically create large orders and attract new users. The article quoted the judge saying,
Choi has committed fraud for a countless number of victims for a long period of time…. Futhermore [sic], he holds the financial authorities responsible for failing to keep track of the industry better.
South Korea’s crypto market has been getting bad press for some time now. Only last year, the country’s largest cryptocurrency exchange, Upbit, was accused of manipulating its order book after regulators indicted three of its staff. The exchange, of course, denied all such allegations.
Earlier, around the same time, the South Korea-based exchange Bithumb, was also accused of faking trade volume, it too denied the allegations.
Stay tuned to BlockPublisher for more details.