Jinwook Shin, the head of Bitsonic, has received a seven-year prison sentence for orchestrating a fraudulent operation that amounted to $7.5 million.

A district court in Seoul has issued a prison sentence to Jinwook Shin, the CEO of the South Korean company Bitsonic, for a variety of financial crimes including market manipulation and the theft of customer funds. cryptocurrency exchange The court found that they had unlawfully taken customer deposits totaling around $7.5 million, equivalent to 10 billion Korean won.

In additional sentencing, Bitsonic's chief technology officer, Bae, was given a one-year prison term, as reported by the Yonhap news agency in South Korea.

Jinwook Shin faced several serious charges, including fraud and document forgery, while Bae was charged with obstructing business operations by causing computer malfunctions.

The court established that Shin exploited his authority as a cryptocurrency exchange operator to distort key data processing functions. This manipulation resulted in the fictitious appearance of a soaring trading volume, enabling him to defraud countless individuals out of more than 10 billion won.

The ruling stated, 'By leveraging his role as the operator of the exchange, he effectively disabled vital processing functions, creating a false impression of increasing transaction volumes through legitimate trades.' virtual asset exchange Allegations suggest that Shin artificially inflated trading figures by engaging in a 'buyback' strategy, using Bitsonic's resources to repurchase tokens of Bitsonic Coin (BSC) to elevate its market price, while also manipulating the system to reflect non-existent cash deposits.

He misappropriated around 10 billion won, translating to cash and digital assets that were never returned to customers. Bae reportedly played a pivotal role in this scam by developing a program that allowed Shin to prioritize his own purchases in the exchange's transaction system.

How the Fraud Took Place?

The court underscored the substantial erosion of trust within the cryptocurrency exchange realm, highlighting the critical need for transparency and integrity between platform operators and users. Despite this, the defendants expressed no regret, leaving many victims without restitution.

Additionally, Shin recruited 101 coin  investors Please be aware that the information on this page is not intended as legal, financial, or investment advice. It’s crucial to only invest what you can afford to lose and to seek guidance from a financial advisor if you have uncertainties. For additional details, check the terms and conditions along with the help resources offered by the advertiser or issuer. At MetaversePost, we strive for accuracy in reporting, but keep in mind that market conditions can shift unpredictably.

Kumar, a seasoned technology journalist, specializes in carving narratives at the crossroads of AI/ML, marketing tech, and innovative domains like cryptocurrency, blockchain, and NFTs. With over three years in the field, Kumar has forged a reputation for crafting engaging stories, conducting captivating interviews, and delivering in-depth analyses. His expertise includes creating impactful content for leading industry channels, skillfully blending technical insights and compelling storytelling to explain complex subjects clearly to various audiences.