South Korean Crypto Exchange Bitsonic CEO Faces Second Jail Term Over Fraud

The CEO of South Korean crypto exchange Bitsonic has been sentenced to a second jail term for another fraud charge. CEO Shin Jin-wook already faces a 7-year sentence in prison for stealing 10 billion won ($7.5 million) worth of customer deposits.

South Korean media outlet Digital Asset reported that a Daegu District Court judge sentenced Shin for his alleged involvement in Bitsonic Coin (BSC) fraud.

CEO Admits to Bitsonic Coin Fraud

The CEO defrauded customers for a total of 160 million won ($115K) “by inflating BSC trading volume and market price after inducing transactions through false announcements,” the verdict noted.

Shin used false KRW points obtained via buybacks to purchase Bitcoin and Ethereum from members. He later converted the digital assets into cash and invested in firms unrelated to the exchange, it added. Additionally, he falsified the lockup period, only to discover that neither the investment nor interest could be returned to investors.

“Although Mr. Shin was unable to reach an agreement with the victims, he admitted his wrongdoing and is reflecting on it,” said Judge Seong Gi-jun. “The sentencing conditions, including the motive and circumstances of the crime, were taken into consideration when determining the sentence.”

Here’s How Bitsonic Chiefs Landed in “Lenient” Sentences

In February 2024, Shin and Bitsonic’s chief technology officer, surnamed Bae, were sentenced to a combined 8 years in prison for manipulating crypto prices and hugely profiting from them.

Per a Seoul District Court, Shin had “reached an agreement with two of the victims who suffered the largest amount of damages,” at the time.

Further, neither CEO Shin nor Bae had a history of committing similar types of crime, the Judge noted. This led the Judge to sentence both Bitsonic chiefs to a “lenient” sentence.

Besides, under South Korean law, defendants can appeal guilty verdicts and sentences at the High Court and the Supreme Court.