Report: Leaders of South Korean Crypto Exchange Komid Face Jail After Fraud

Report: Leaders of South Korean Crypto Exchange Komid Face Jail After Fraud

This week the Asian crypto-market has been rich in the news. Earlier it was reported that Japan finally approved Coincheck’s official status as cyber money exchange, while China tightened the screws on DLT projects.

This time the news has come from South Korea, where two heads of the local cyber money platform Komid were purportedly sentenced to jail. The reason for this was that they were faking the volumes of exchange.

What Happened?

According to Blockinpress, the local media which focuses on cryptocurrencies, two leaders of Komid were sentenced to prison falsifying exchange bulk. The company’s top exec Choi was sentenced to three years in jail, while the second leader reportedly received two years. As the media outlet emphasizes, both of them were sentenced for scam, misappropriation and malfeasance.

As the media note, the charges are related to the faking of 5 million money operations on the exchange which pumped up the volume. Purportedly, this helped the leaders to make up $45 million. Another suspicion is that the entity might have used a bot for generating large orders automatically and engage novel clients.

The judge said, as it is quoted in the article, that the CEO resorted to fraud multiple times regarding different users within a long time.

«Futhermore [sic], he holds the financial authorities responsible for failing to keep track of the industry better,” also said the judge.

Similar cases have already happened on the South Korean crypto-market. Last year the most significant local crypto exchange Upbit negated accusations that it had garbled its order book. This happened after watchdogs indicted three of the exchange’s workers.