Cryptocurrency

Bitsonic

Terra

After a month had passed since the “Virtual Asset User Protection” bill was enacted, another crime occurred. According to the South Korean media outlet Chosun Biz, Jinwook Shin, the CEO of Bitsonic, a prominent South Korean cryptocurrency exchange, was arrested on August 7th by local law enforcement.&nbsp; 
He stands accused of orchestrating a scheme that siphoned approximately $7.5 million from exchange users through the manipulation of cryptocurrency prices and trading volumes. Allegedly, these activities unfolded for more than two years, starting from January 2019 until May 2021. Without preliminary detection, the vice president of Bitsonic is also on trial. 
Despite facing liquidity challenges and suspending withdrawal operations, Shin purportedly continued to attract new investors, thereby exacerbating the scale of the alleged fraudulent activities. Investigations have uncovered that Shin leveraged a shell company registered in Singapore to execute his illicit activities, highlighting the intricate cross-border nature of cryptocurrency-related financial crimes. 
The ramifications of this case extend beyond Bitsonic. In August 2021, amid the turmoil surrounding Bitsonic’s operations, South Korean authorities took decisive action, shutting down a total of 11 local cryptocurrency platforms due to their involvement in fraudulent practices. This collective crackdown underscores the challenges faced by regulators in effectively overseeing the swiftly evolving cryptocurrency landscape. 
On July 27, 2023, in response to the surge in cryptocurrency-related offenses, the South Korean government has taken <a href="https://news.todayq.com/south-korea-forms-a-joint-regulatory-body-to-combat-crypto-crimes/" rel="noopener noreferrer nofollow">significant</a> steps to pause such activities in the future and safeguard investors by forming an investigative team of officials from diverse agencies. This unit will expedite crypto-related crime investigations and ensure market stability.&nbsp;New legislation has been enacted to impose strong penalties, including jail terms and fines, on individuals engaged in illicit activities concerning virtual assets. South Korea’s efforts aim to establish a secure and stable virtual asset market while deterring unlawful practices. 
Although on June 30, 2023, the South Korean government <a href="https://news.todayq.com/south-korea-passes-a-crypto-bill-to-insure-customer-funds-and-maintain-a-reserve-capital/" rel="noopener noreferrer nofollow">passed</a> the bill, that aims to prevent collapses like Terra LUNA, prioritizing investor safety and combating market manipulation. Cryptocurrency falls under the jurisdiction of the Financial Services Commission, requiring firms to insure funds, maintain reserve capital, and uphold records. 
© Todayq News

Report: The CEO of Bitsonic arrested for stealing $7.5 million from exchange users

Todayq News

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