BitSonic CEO Sentenced to 7 Years in Prison for 10 Billion Won Fraud

Shin Mo (신모), the CEO of the cryptocurrency exchange BitSonic, has been sentenced to seven years in prison by the Supreme Court of South Korea for defrauding investors of approximately 10 billion won. The court confirmed the sentence on October 31, following Shin's conviction for violating laws related to specific economic crimes, including fraud. Additionally, Bae Mo (배모), the vice president of technology at BitSonic, received a one-year prison sentence for his role in the scheme.

From January 2019 to May 2021, Shin was accused of manipulating the price of BitSonic's self-issued coin, BitSonic Coin (BSC), and inflating the exchange's revenue and operating profits through the establishment of shell companies. Investigations revealed that Shin employed a 'buy-back' strategy, using company funds to purchase the coins he had issued, thereby artificially inflating their value. He also recruited over 100 members, collecting cash and virtual assets amounting to 10 billion won under the guise of deposits.

Bae was implicated for creating and operating a program that concentrated on purchasing Shin's coins, which disrupted the normal trading operations of the exchange.

In a previous ruling, the appellate court criticized Shin for exploiting his superior position as both the operator and the actual issuer of the cryptocurrency, stating that he repeatedly committed fraud against numerous unspecified users over an extended period. The court emphasized that his actions fundamentally undermined public trust in the transparent and fair operation of cryptocurrency exchanges, resulting in countless victims.

The Supreme Court dismissed appeals from both parties, stating that there was no misunderstanding of the law involved in the case.