Seoul Police (Courtesy: Twitter)
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Korean Crypto Exchange Raided For Illegal Profit

Seoul Police (Courtesy: Twitter)
Seoul Police (Courtesy: Twitter)

Police in Seoul has forayed the offices of one of the biggest crypto exchanges in South Korea, Coinbit. Allegedly the firm has faked more than 99% of its trading volume.

According to a recent news report, authorities stormed the offices of the company early today. The suspicion is that Coinbit has manipulated users, faking a large portion of its trading volume. This has allegedly earned the exchange $85 million in illegal income during the process.

The Seoul Metropolitan Police Agency’s Metropolitan Investigation Department reportedly confiscated and searched several locations, among which the main headquarters of the company in Gangnam-gu, Seoul.

Authorities have stated that Coinbit’s owner Choi Mo and the management team of the firm have artificially boosted the transaction volume and manipulated market prices via various ghost accounts.

They have allegedly bought and sold a number of tokens (among which Bitcoin, Ethereum, Ripple (XRP), and USDT) between different accounts of the exchange. According to the officials, 252,000 monthly active users of the firm were affected by the scam.

The scheme included two major exchange accounts that contained the users’ funds. The first account traded on leading cryptocurrencies such as Bitcoin, Ethereum, XRP, and Tether trading pairs.

The second ghost account was allegedly used for trading mainly lesser-known altcoins and initial exchange offering tokens. The management controlled their supply, manipulated prices to higher values, and reportedly dumped the collected tokens to retail traders.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.