Bitcoin scam busted, 2 arrested
Seoul Police Raid Coinbit Offices and Arrest Company Executives Suspected of Fraud.
Law enforcement officials believe that the owner of the third largest South Korean crypto exchange and several managers manipulated prices and trading volumes using fake accounts. Investigators estimated that additional income from such illegal operations amounted to at least 100 billion won ($ 84.4 million)..
The police also found that the platform was effectively split into two separate exchanges, one of which was used to control transactions, delay withdrawals, and «inflating» volumes. In addition to manipulations, the investigation revealed that the company did not conduct accounting correctly..
South Korean media reports Coinbit suspends operations due to police investigation.
text: Ivan Malichenko, photo: Seoul.co