South Korean Ethereum and Bitcoin Market Manipulation Leads to Second Jail Sentence for Bitsonic CEO

The CEO of South Korean cryptocurrency exchange Bitsonic, Shin Jin-wook, has been handed a second prison sentence due to fraud related to market manipulation. Previously serving a 7-year sentence for embezzling $7.5 million from customers, he was convicted of inflating the trading volume and price of the Bitsonic Coin (BSC) through deceptive announcements, thereby defrauding investors of approximately $115,000. Shin engaged in transactions involving fake KRW points to purchase Bitcoin and Ethereum, which he then converted into cash and diverted into unrelated enterprises. Additionally, he misrepresented the lockup period to investors, leaving them without anticipated returns. The court acknowledged his remorse and admission of guilt, which contributed to the relatively lenient sentence, though both Shin and the CTO Bae received an 8-year combined sentence for crypto price manipulation. These rulings are subject to appeal under South Korean law. This case underscores the ongoing regulatory challenges and risks within the crypto industry, especially concerning fraudulent schemes and market manipulation. It highlights the importance for investors to remain vigilant and for authorities to enforce strict compliance standards to safeguard market integrity and investor interests.