In South Korea, the authorities have formally filed fraud charges against Coinbit, the chairman of a major crypto exchange in the country, and two executives of the company who did not want to be named. They are suspected of manipulating prices.

Coinbit executives are formally accused by South Korean authorities

According to Newspim, the Fifth Investigation Team of the Seoul Metropolitan Police Department issued an official statement. The same local media also quoted the country’s prosecutors as saying that they are preparing for the case because they believe that executives have participated in market manipulation “multiple times”.

Among these allegations, the prosecution includes record falsification and fraud. As the investigation is still ongoing, South Korean law requires the media to call the chairman of Coinbit “Mr.” One kind. “

The police believe that from August 2019 to May 2020, all three executives allegedly used “fake accounts” to increase transaction volume to manipulate the price of coins.

The so-called “money laundering transaction”

As previously reported by news.Bitcoin.com, the “washing trade” allowed the three people involved in the program to fraudulently obtain more than 100 billion won ($84 million at the time) in profits.

Random trading is a form of market manipulation, in which investors buy and sell the same financial assets at the same time, in order to produce misleading human activities in the market. It is illegal in most jurisdictions, including South Korea, and it also applies to the crypto market.

As early as August 27, the South Korean police raided and confiscated the Coinbit headquarters in Gangnam District and Seoul. However, in a statement sent to news.Bitcoin.com within the same week of the attack, Coinbit stated its legal status in this matter:

So far, Coinbit has not committed any illegal actions and has not been suspended at this time. No one, including the chairman of Coinbit, was prosecuted or confiscated by the police on fraud charges. This case is a personal crime committed by employees who joined the company for financial gain.

As of press time, the date on which the three defendant executives must appear in court for trial by the judge has not yet been determined.

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Do you think this case will harm the Korean encryption industry? Let us know in the comments section below.

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