TechFlow reported, citing Korea Economic Daily, that South Korean prosecutors have charged the CEO of cryptocurrency exchange Bitsonic with embezzling 10 billion KRW (approximately $7.6 million) in investment funds and margin deposits, and arrested and indicted him on August 7.
In addition, prosecutors have also charged Bitsonic's Vice President of Technology with obstruction of justice and referred the case for trial.
According to the prosecution’s investigation, between January 2019 and May 2021, Bitsonic’s CEO allegedly manipulated computers fraudulently to inflate the prices and trading volumes of virtual assets. When facing losses that prevented meeting investors’ withdrawal requests, he concealed these facts and transferred 10 billion KRW worth of cash and virtual assets by selling cryptocurrency lock-up products to other customers.
