Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: cryptochris1 on January 21, 2019, 05:09:05 AM
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The South Korean exchange, Komid, was busted for fraudulent activity. This is the First time a representative of a digital asset exchange has been sentenced to prison for allegedly inflating trading volumes.
CEO Choi Hyunsuk recieved a 3 year sentence and another company head named Park received a 2 year sentence for fraud, embezzlement and misconduct.
The pair allegedly used a bot to fake large orders in both cryptocurrencies and the national currency, the Korean won.
The Komid exchange began operations on Jan. 5 last year after beta testing. According to the courts, Choi made more than 5 fake accounts in January last year and inflated trading volumes.
They fabricated over 5 million dollars in volume to decieve investors into thinking the volume was organic. This led to the two making over 45 million dollars.
There is also speculation that they utilized the bot to automatically create large orders to attract new users.
The judge said "Choi has committed fraud for a countless number of victims for a long period of time...Furthermore, he holds the financial authorities responsible for failing to keep track of the industry better"