Bitsonic CEO Jailed Again in $70K Crypto Fraud Scandal – How Deep Does the Rabbit Hole Go?

Another day, another crypto executive behind bars. The CEO of Bitsonic is facing prison time—again—this time for allegedly swindling over $70,000 from investors. Just when you thought the industry was cleaning up its act.

Fraud, Lies, and Handcuffs

Details are still emerging, but one thing’s clear: this isn’t his first rodeo. The charges suggest a pattern—bad enough to land him back in cuffs. Authorities aren’t holding back, signaling a crackdown on crypto’s wild west reputation.

Investor Trust? What Investor Trust?

While DeFi protocols push for transparency, cases like this make you wonder if some execs missed the memo—or just burned it. With $70K on the line (chump change in traditional finance, but still), it’s a stark reminder: DYOR doesn’t stop at smart contracts.

Another Nail in Crypto’s PR Coffin?

Regulators are watching. Investors are fed up. And yet—somehow—the market keeps climbing. Maybe fraud’s just part of the ‘risk’ in ‘high-risk, high-reward.’

Bitsonic CEO and tech executive wrapped up in 10 billion won fraud scandal

As previously reported by crypto.news, Bitsonic’s CEO, Jinwook Shin was found guilty of fraud, forging and falsifying records, and obstructing a business via computer. He was sentenced to seven years in prison on Aug. 7, 2023, following allegations that he manipulated transaction volumes on the exchange.

In addition to fraud charges, Shin entered false South Korean won into the exchange’s system to simulate fake cash deposits. He also purposely misled investors by publishing announcements about partnerships with international exchanges.

Shin’s deception was discovered after investors were unable to withdraw funds, leading to the discovery that Shin had diverted $7.5 million in customer deposits for his own use.

Shin’s defrauding activities were supported by the exchange’s technology vice president, known only as Mr. A, who supported Shin’s fraudulent activities by creating a program that inflated prices by purchasing cryptocurrency owned by Shin. Mr. A was sentenced to one year in prison.

Bitsonic’s imminent downfall

Launched in April 2018, Bitsonic is a cryptocurrency exchange based in South Korea. The exchange supports Korean won fiat and crypto trading pairs. It also shares trading revenue with holders of its native token, BSC. Investors can stake or un-stake the BSC coin and manually select between rewards and liquidity.

Unfortunately the exchange only lasted three years before it ceased operations in August 2021, citing “internal and external issues.” This came after customers complained about liquidity problems and inability to process withdrawals.