- Coinbit is facing police investigation for alleged crypto market price manipulation.
- According to the source, Coinbit allegedly issued crypto trading through ghost accounts.
- As part of the incident, Coinbit’s executives were prosecuted to be the core victim for the price fogging.
Cryptocurrency exchange Coinbit is under police investigation regarding alleged crypto market price manipulation.
According to South Korean news agency MSN, at least three of Coinbit’s executives are being prosecuted by the Seoul Metropolitan Police Agency. These include Choi Mo, who appears to be the Chairman of the exchange. According to the prosecution, Choi Mo allegedly presented forged crypto market records.
According to the report, the Coinbit management team specifically inflated the transaction volume for crypto trading. The police noted that the crypto asset trading went through a ghost account.
Thomas Reuters Law emphasized in an article that practicing unfair trading services is forbidden and can cause the culprit to serve jail time.
Interestingly, the Seoul police organized and searched Coinbit’s various offices located in Gangnam-gu district months back. Soon after the police search, Coinbit remarked the police action as “unreasonable investigation” and denied the allegations. A Coinbit official said that many of the charges “were inflated during the investigation process.” Moreover, the exchange and victims suffered damages in the process.