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Korean Crypto Exchange Seized After Banking $85 Million In Illegal Profits
Summary: Updates on Coinbit’s close-down reported earlier on August 26: Seoul police have raided the offices of Coinbit after they found the firm had used illicit methods to generate trading volume and earn millions of dollars, according to local outlet Seoul News. Coinbit allegedly faked over 99% of its volume using the scheme. Fake volumes are ...
Updates on Coinbit’s close-down reported earlier on August 26: Seoul police have raided the offices of Coinbit after they found the firm had used illicit methods to generate trading volume and earn millions of dollars, according to local outlet Seoul News. Coinbit allegedly faked over 99% of its volume using the scheme. Fake volumes are a rampant feature in crypto markets globally, with researchers stating over 90% of all transactions on exchanges could be bots trading back and forth with each other to generate the illusion of an active market. This is referred to as “wash trading.” Coinbit utilized a similar scheme, said the police.
The exchange’s owner, Choi Mo, and other team members were alleged to have bought and sold various tokens between different accounts on the exchange. Doing so allowed Coinbit to attain over 100 billion won ($85 million) in fraudulent income coupled with their wash trading method that spurred the legal action, the report claimed.
Tracy Chen
Tags: Coinbit,Exchange
Link: Korean Crypto Exchange Seized After Banking $85 Million In Illegal Profits [Copy]
