The CEO of the cryptocurrency exchange Bitsonic, who manipulated the market price of self-issued coins and embezzled approximately 10 billion KRW in customer deposits, was sentenced to prison in the first trial.
On the 6th, the 12th Criminal Division of the Seoul Eastern District Court (Presiding Judge Lee Jong-chae) sentenced Shin (41), the CEO of Bitsonic, who was detained and prosecuted on charges including fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes, forgery and use of electronic records, and obstruction of business by computer, to seven years in prison. Bae (44), the Chief Technology Officer (CTO) of Bitsonic, was sentenced to one year in prison for obstruction of business by computer.
The court explained the sentencing by stating, "Trust in virtual asset exchanges, which must operate based on trust between operators and users, has been severely damaged. Nevertheless, the defendant has avoided responsibility and shown no remorse, and a significant portion of the damages has not been recovered."
From January 2019 to May 2021, Shin increased trading volume using the so-called 'buyback' method and falsely entered Korean won points into the Bitsonic system. Through this method, he recruited 101 coin investors and embezzled approximately 10 billion KRW in cash and some virtual assets.
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