Seoul Police Indicted Coinbit Executives for Market Manipulation
- 99 percent of the trading volume on the local exchange are allegedly fake.

The city police are saying that the top exchange executives manipulated the cryptocurrency prices on the exchange from August 2019 to May 2020.
The South Korean authorities first moved against Coinbit in August when the local police reportedly raided and seized the operations of the exchange. The allegations on the exchange include inflating its trading volume by up to 99 percent.
Such practice of wash trading is common in the cryptocurrency market as a Bitwise pitch to the US Securities and Exchange Commission (SEC) last year highlighted that 95 percent of all Bitcoin trading activities were fake. However, later reports have significantly downplayed that number.
In wash trading, the exchanges buy and sell digital currencies at the same time, thus creating fake volume on the platforms to attract traders.
Crackdown on the Crypto Industry
Coinbit is the third-largest Cryptocurrency Exchange Cryptocurrency Exchange A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) for short.How Does Trading Take Place on a Crypto Exchange?Cryptocurrency trading occurs over a centralized exchange, although these crypto exchanges should be used with caution given the implications that surround the custody of new assets. Similar to the banking industry, when a crypto exchange holds cryptocurrencies of users they accrue interest and are no longer classified as client money.These provide an accessible platform for not only companies, hedge funds, and retail traders for exchanging digital currencies.Additionally, crypto exchanges serve a critical role in producing stability within the cryptocurrency sector given how the sourcing and pricing of these assets are innately volatile. One could think of a crypto exchange as an intermediary who provides a service by connecting buyers and sellers from various markets under one roof. In exchange for facilitating trades and for services rendered, a digital currency exchange generally collects a fee of an outgoing transaction that averages between 0.20% to 0.25% or will request a deposit fee that has been known to be as high as 11% for credit card deposits. Crypto exchanges may also support the exchange of crypto tokens, such as the Binance Token, which is ranked as the 9th most valuable cryptocurrency in the world. A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) for short.How Does Trading Take Place on a Crypto Exchange?Cryptocurrency trading occurs over a centralized exchange, although these crypto exchanges should be used with caution given the implications that surround the custody of new assets. Similar to the banking industry, when a crypto exchange holds cryptocurrencies of users they accrue interest and are no longer classified as client money.These provide an accessible platform for not only companies, hedge funds, and retail traders for exchanging digital currencies.Additionally, crypto exchanges serve a critical role in producing stability within the cryptocurrency sector given how the sourcing and pricing of these assets are innately volatile. One could think of a crypto exchange as an intermediary who provides a service by connecting buyers and sellers from various markets under one roof. In exchange for facilitating trades and for services rendered, a digital currency exchange generally collects a fee of an outgoing transaction that averages between 0.20% to 0.25% or will request a deposit fee that has been known to be as high as 11% for credit card deposits. Crypto exchanges may also support the exchange of crypto tokens, such as the Binance Token, which is ranked as the 9th most valuable cryptocurrency in the world. Read this Term in South Korea with around 252,000 active monthly users. These alleged illegal activities have earned the exchange at least 100 billion won (about $84 million).
Some local media earlier reported 99 percent discrepancies on the books of Coinbit and the reported volumes, which revealed that one third-party accounting firm refused to work with the exchange after reviewing its books.
Furthermore, the South Korean authorities are investigating other major local exchanges for fraud. The police seized the operations of Bithumb, the country’s largest digital currency exchange, multiple times and summoned its chairman for investigating fraud charges involving tens of millions of dollars.
The city police are saying that the top exchange executives manipulated the cryptocurrency prices on the exchange from August 2019 to May 2020.
The South Korean authorities first moved against Coinbit in August when the local police reportedly raided and seized the operations of the exchange. The allegations on the exchange include inflating its trading volume by up to 99 percent.
Such practice of wash trading is common in the cryptocurrency market as a Bitwise pitch to the US Securities and Exchange Commission (SEC) last year highlighted that 95 percent of all Bitcoin trading activities were fake. However, later reports have significantly downplayed that number.
In wash trading, the exchanges buy and sell digital currencies at the same time, thus creating fake volume on the platforms to attract traders.
Crackdown on the Crypto Industry
Coinbit is the third-largest Cryptocurrency Exchange Cryptocurrency Exchange A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) for short.How Does Trading Take Place on a Crypto Exchange?Cryptocurrency trading occurs over a centralized exchange, although these crypto exchanges should be used with caution given the implications that surround the custody of new assets. Similar to the banking industry, when a crypto exchange holds cryptocurrencies of users they accrue interest and are no longer classified as client money.These provide an accessible platform for not only companies, hedge funds, and retail traders for exchanging digital currencies.Additionally, crypto exchanges serve a critical role in producing stability within the cryptocurrency sector given how the sourcing and pricing of these assets are innately volatile. One could think of a crypto exchange as an intermediary who provides a service by connecting buyers and sellers from various markets under one roof. In exchange for facilitating trades and for services rendered, a digital currency exchange generally collects a fee of an outgoing transaction that averages between 0.20% to 0.25% or will request a deposit fee that has been known to be as high as 11% for credit card deposits. Crypto exchanges may also support the exchange of crypto tokens, such as the Binance Token, which is ranked as the 9th most valuable cryptocurrency in the world. A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) for short.How Does Trading Take Place on a Crypto Exchange?Cryptocurrency trading occurs over a centralized exchange, although these crypto exchanges should be used with caution given the implications that surround the custody of new assets. Similar to the banking industry, when a crypto exchange holds cryptocurrencies of users they accrue interest and are no longer classified as client money.These provide an accessible platform for not only companies, hedge funds, and retail traders for exchanging digital currencies.Additionally, crypto exchanges serve a critical role in producing stability within the cryptocurrency sector given how the sourcing and pricing of these assets are innately volatile. One could think of a crypto exchange as an intermediary who provides a service by connecting buyers and sellers from various markets under one roof. In exchange for facilitating trades and for services rendered, a digital currency exchange generally collects a fee of an outgoing transaction that averages between 0.20% to 0.25% or will request a deposit fee that has been known to be as high as 11% for credit card deposits. Crypto exchanges may also support the exchange of crypto tokens, such as the Binance Token, which is ranked as the 9th most valuable cryptocurrency in the world. Read this Term in South Korea with around 252,000 active monthly users. These alleged illegal activities have earned the exchange at least 100 billion won (about $84 million).
Some local media earlier reported 99 percent discrepancies on the books of Coinbit and the reported volumes, which revealed that one third-party accounting firm refused to work with the exchange after reviewing its books.
Furthermore, the South Korean authorities are investigating other major local exchanges for fraud. The police seized the operations of Bithumb, the country’s largest digital currency exchange, multiple times and summoned its chairman for investigating fraud charges involving tens of millions of dollars.