Executives of the Korean exchange sentenced to prison for false volumes

January 20, 2019 Coin Payment

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Reportedly, two executives of a South Korean cryptocurrency exchange were sentenced to prison for inflating trade volumes on their exchange. The couple used a bot to counter big orders in both cryptocurrencies and won Korean.

Read also: The Indian Supreme Court moves the cryptographic hearing, the community asks for positive regulations

Prison sentences

Two executives from the South Korean cryptocurrency exchange Komid were sentenced to prison on Thursday "for their role in organizing reports on the volume of fraudulent trading on their platform," Asia News reported.

One of the executives is the CEO of the exchange, Choi Hyunsuk. He received a three-year prison sentence while the other executive received a two-year prison sentence, Maekyung's publication in detail, stating:

This is the first time that a representative of a virtual currency exchange has been sentenced to prison for alleged increases in trade volumes.

<img class = "alignright wp-image-277813″ title=”Executives of the Korean exchange sentenced to prison for false volumes” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/komid-logo.jpg” alt=”Executives of the Korean exchange sentenced to prison for false volumes "width =" 250 "height =" 80″/>Komid started operations on January 5th after beta tests. According to the court, Choi created more than five false accounts in January of last year and inflated the volumes of trade in both cryptocurrencies and the Korean won in his exchange. The two were sentenced to prison "for fraud, embezzlement and misconduct," noted Asia News, elaborating:

Prosecutors' accusations have outlined a pattern in which the two defendants fabricated 5 million transactions on their platform to trick investors into thinking that the volume was natural. This led to two gains of around $ 45mil. There is also the suspicion that they use a "bot" to automatically create large orders, which attract new users.

Confidence damaged

The judge explained that "Choi has committed a fraud to countless victims over a long period of time," he said. "There is need for punishment because the harm caused by the creation of fake electronic documents is great," said Maekyung.

However, Edaily reported that the judge took into account the fact that the damage was minimized as some funds were returned. Furthermore, he noted that "the defendants do not seem to have committed a crime with strong fraudulent intentions". However, he concluded:

The crime damaged customer confidence in the exchange of virtual currency and had a negative effect on the domestic virtual currency trading market.

Cryptocurrency exchanges were captured using trading bots to falsify orders from the early days of Mtgox. In December of last year, officials of one of the country's largest cryptographic exchanges, Upbit, have been charged with fraud. They allegedly falsified orders worth about $ 226 billion and sold 11,500 BTC to about 26,000 investors. Upbit denied the allegations.

Other domestic crypts exchanges in such an agreement include Coinnest, whose executives were indicted in September of last year for accepting a bribe. In addition, employees of Crypto exchange HTS Coin were arrested in September last year on charges of fraud and embezzlement.

What do you think of the Komid executives sentenced to prison for false volumes? Let us know in the comments section below.

Images kindly granted by Shutterstock and Komid.

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Executives of the Korean exchange sentenced to prison for false volumes

Prison sentences

Confidence damaged

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