Prosecutors Arrest and Indict BitSonic Exchange CEO for Embezzling 10 Billion Won

False Input of KRW Points on the Exchange

The prosecution has indicted Mr. A (40), CEO of the virtual asset exchange Bitsonic, on charges of embezzling approximately 10 billion KRW in cash and virtual assets.

Seoul Eastern District Prosecutors' Office.

On the 8th, the Cyber Crime Investigation Division of the Seoul Eastern District Prosecutors' Office (Chief Prosecutor Lee Hee-chan) announced that Mr. A was arrested and indicted on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), while Vice President of Technology Mr. B (43) was indicted without detention.

According to the prosecution, they are accused of embezzling about 10 billion KRW in deposits from exchange members by repurchasing the exchange’s self-issued coin (BSC) to fake an increase in market price and trading volume, and falsely inputting Korean won points into the exchange system as if cash had been deposited, even though no actual deposits were made.

When they became unable to meet withdrawal requests on time due to accumulated deficits, they were found to have engaged in a Ponzi scheme by using newly incoming virtual assets as resources for withdrawals. After receiving a total of 13 related cases (including records of non-prosecution) from the police and others, the prosecution merged and directly supplemented the investigation to confirm their charges.

The prosecution stated, “We will continue to strictly punish illegal activities related to virtual assets that disrupt the order of virtual asset trading and cause harm to victims.”