Cryptocurrency Exchange

Leaders of South Korean Crypto Exchange Komid Jailed for Faking Volume

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As per the latest Korean crypto media outlet blockinpress reports, 2 of the leaders of the South Korean cryptocurrency exchange Komid were allegedly condemned to attend jail time for falsifying exchange volumes.

The exchange’s CEO, surnamed Choi, got a three-year sentence, while another firm leader with an unnamed role was supposedly sentenced to two years custody of deception, misappropriation, and wrongdoing, the article notes.

As per the marketing materials reviewed by The Block. Blockchain Clearness Institute, a team of blockchain data investigators, released a report in December that presented clear indication of wash trading across 90 percent of pairs on 80 percent of exchanges. There are some firms that are selling services to token teams and exchanges to expand volumes.

An examination by The Block found that the volume per one website visit could possibly be an important metric in classifying falsified volume.
The article quotes the judge saying:

“Choi has committed fraud for a countless number of victims for a long period of time. Furthermore [sic], he holds the financial authorities responsible for failing to keep track of the industry better.”

Kim Kook-hyun, head of Upbit’s existing Singapore branch, is quoted as saying that:

“As Singapore has proactively supported blockchain technology, our advancement into the nation will help us secure many chances to lead a variety of relevant projects and to have global competitiveness.

Upbit, that is in hand by developer Dunamu, is defendant of incorrectly inflating its volume figures on 3 occasions between Gregorian calendar month 2017 and December 2018.

Citing reports from the capital of South Korea District Prosecutors workplace Friday, The Korean Peninsula Times says 2 senior executives from Dunamu and one Upbit worker are indicted, however not detained, as a part of Associate in Nursing investigation into the proceedings.

The case came from South Korean finance regulator, the monetary Services Commission (FSC).

As Yonhap reports, Kakao’s recent period Report indicates that cyberspace profit of Upbit operator Dunamoo was nineteen,330 million won ($17.35 million), with total assets adding up to around one.25 trillion won (around $1.1 billion). Last year, the corporate announce a net of one hundred ninety.31 billion won ($170 million), whereas its total assets were at one.257 trillion won (around $1.1 billion).

Dunamoo additionally runs KakaoStock, the foremost well-liked stock brokerage application and index in the Republic of Korea, nonetheless, per Yonhap, the lion’s share of cyberspace profit is reportedly from Upbit.

While each exchange are hit by the world crypto securities industry, Bithumb additionally notably suffered a security breach in the month of October that resulted within the felony of around $17 million prices of crypto, that it’s since pledged to reimburse from company funds. Bithumb furthermore suspended its services within the wake of the high-profile incident, solely resuming them earlier this month.

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