The leaders of a fake crypto exchange are now behind bars

The CEO and CEO of a fake crypto exchange based in South Korea has been jailed by a branch of the Supreme Court in Seoul for their role in their platform’s fraudulent business.

According to informed via the local communication medium, Blockinpress, The court rejected the appeal of both executives from a trading platform called Komid. One will serve three years, the other two. Choi and Park, whose names are not disclosed by the law enforcement authorities, They are accused of creating sales volume data for fake operations on their platform. This increases the reputation of the crypto community in South Korea, however It looks like they’ve been caught tampering with.

Their scam consisted of allowing customers to deposit Korean won and other major cryptocurrencies in exchange for cryptocurrencies. But it also filled the platform with false information via fraudulent token lists.

The leaders of a fake crypto exchange are now behind bars
The leaders of a fake crypto exchange are now behind bars

The activity reported by Komid aroused suspicion by the authorities that it had reported $ 5 million in transactions. These volumes give the appearance of a legitimate business venture, but the court believes aspiring entrepreneurs used bot software to generate large (albeit pointless) business activity.

Ahn Seong-joon, the judge overseeing the case, made the following comments:

“Mr. Choi and others have repeatedly committed fraud against large numbers of unspecified victims over a significant period of time. Mr. Choi and others have used the balance incorrectly entered for the actual cryptocurrency transaction.”

South Korea’s third largest cryptocurrency exchange, Coinbit, was recently seized by police on charges of fraud. According to a report by South Korean media company Seoul Shinmun 99% of the transaction volume on the exchange was also falsified by forged volume.

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