The crypto-market in South Korea is massive and the number of people trading and exchanges, as measured in the population or size in the country is rather large. According to a report on the Korean website Blockinpress, the CEO of a Korean exchanged called Komid, has been handed a three-year prison sentence for committing fraud against investors. He was said to be inflating the exchange volume artificially. In another case, an executive received two years in jail – both of course high profile cases.
The report states that Komid manufactured fake accounts to the tune of 5 million to falsely trade orders and increase volume that really did not represent client flows. This exchange used inflated figures to encourage other investors to trade on the exchange – a breach of client trust and of course an illegal act. Not only Komid but another firm called UPbit also saw executives arrested on similar charges of artificial inflation of flows. This breach of trust is just one issue that regulators are dealing with on a dialy basis. However, the Korea Times newspaper suggests that some of these executives have not been taken into custody. In the UPbit scandal there was over $106.8 million US of cash brought in on this fake system.
More on these topics in the coming weeks.
This article was built from several news sources including Bitcoin Magazine – an article from Landon Manning, January 22, 2019.