News coming out of South Korea indicate that two leaders of popular crypto exchange, Komid, have been sentenced to jail for the offense of faking exchange volumes, all this was reported by South Korean crypto publication, blockinpress.
CEO of the crypto-exchange whose last name is Choi will reportedly serve a three-year sentence while another exchange senior executive whose exact role is yet to be specified, will reportedly spend two years behind bars. The two have been put away for being guilty of embezzlement, fraud, and misconduct.
The charges were precipitated by a scheme that saw the exchange fake 5 million transactions in order to inflate exchange volumes. These doctored transactions reportedly saw them earn a cool 45 million from investors fooled by the fake volumes. It’s also suspected that the exchange made use of a bot to attract new users while also creating large orders.
The judge presiding over the case had this to say about Choi;
“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.”
Komid is not the first South Korean entity that has had to answer questions concerning suspicions of faked volumes. Another South Korean exchange named “Upbit” denied accusations of having manipulated their order book after regulators indicted three of their staff. Bithump, another exchange in the same country also denied allegations of trade volume manipulation last month.
