A cryptocurrency exchange team was imprisoned after stealing users’ money
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Answer A cryptocurrency exchange team was imprisoned after stealing users’ money
Recently, the South Korean Supreme Court upheld the prison sentences of two executives of cryptocurrency exchange Komid after they stole about $25 million in user funds.
will have to Choi Moo, CEO of trading platform Komid, will have to serve three years in prison, while Park Mo, the second person involved in the case who was responsible for the company’s financial operations, will serve two years in prison.
In January 2018, two Komid executives faked trading volumes on their own platform in order to misrepresent customer activity.
According to the investigation, they fabricated the balance records using a fake account, as none of the funds actually existed.
After that, Choi and Park used 50 billion won (about $42 million) as fake money and just fake numbers found on the platform to convince users, then got 30 billion won (about $25 million) in real users’ money.
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The judge of the court, who pronounced the sentence against the defendants, said:
Mr. Choi and others have committed fraudulent activities over a long period of time, targeting a large number of unknown victims
According to Blockinpress, Choi and others used false account balances to conduct real transactions in which they withdrew users’ money.
During the first and second trials, the court took into account the fact that the defendants returned part of the funds to the clients.
The judge noted that as a result, customer confidence in the cryptocurrency exchange was undermined, and the local market was negatively affected.
Earlier this week, Seoul police also raided the offices of crypto exchange Coinbit, whose management is suspected of forging 99% of its trading volume.
The general significance of this news is the need to be careful in choosing a trading platform, and to use only trusted platforms and not others.
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