Reportedly, two South Korean cryptocurrent exchange leaders Komid were sentenced to serve imprisonment for false trading volumes, armored block-press reports in cryptopressione on January 18th.
The chief executive of the exchange, nicknamed Choi, received a three-year sentence, while another company leader with an unspecified role was sentenced to two years in prison for fraud, embezzlement and misconduct, # 39; article.
According to reports, the allegations outline a pattern in which the exchange has falsified 5 million transactions to inflate the volume, which reportedly would have yielded $ 45 million. It is also suspected that the company used a bot to automatically create large orders and attract new users. The article quotes the judge saying:
"Choi has committed fraud to countless victims over a long period of time … Futhermore [sic], believes that the financial authorities have failed to follow the sector better. "
As Cointelegraph reported in December of last year, South Korea's largest cryptocurrency swap, Upbit denied the allegations that it had manipulated its backlog after the regulators charged three of its employees.
Citing reports from the Seoul District Attorney's Office, the Korea Times said that two senior executives of Upbit's developer Dunamu and an employee of Upbit were indicted, but not detained, as part of an investigation into the method.
At the beginning of the same month, the exchange of cryptocurrencies based in South Korea, Bithumb, also denied the allegations of false commercial volume.