The police came to the offices of the Korean exchange Coinbit, accused …

Police came to the offices of the Korean exchange Coinbit, accused of massive rigging of trades

Seoul police this morning raided the offices of the cryptocurrency exchange Coinbit, one of the largest in South Korea. Decrypt reports citing local media that the company used illegal methods to create visibility of trading volumes and earned tens of millions of dollars from this..

Over 99% of Coinbit’s trading volumes were fraudulent, according to authorities. Exchange owner Choi Mo and several members of his team are believed to have used multiple accounts to buy and sell various tokens..

According to the publication, two main accounts were created on the exchange that contained all client funds. One of them traded in pairs with large cryptoassets, including Bitcoin, Ethereum, XRP and Tether, using other company-controlled accounts. The second traded extremely small altcoins and tokens of projects that conducted initial exchange offerings (IEO). This allowed the organizers to manipulate the market in order to inflate the prices of tokens and then sell them to their own clients..

Thus, Coinbit misappropriated over 100 billion won ($ 85 million). In addition, the exchange is suspected of reporting fraud to cover up other wrongdoing and waste..

The fact that Coinbit refused to have an external audit means that the company was conducting its business outside the box and its reporting is not credible,” said an anonymous tax expert..

The police came to the offices of the Korean exchange Coinbit, accused ...

Du Wang Nam, head of business development at MakerDAO Asia, expects new operations of this kind to follow in the future along with increased regulation of the cryptocurrency industry. “This is not the first time that Korean stock exchanges have been convicted of fraud. With the introduction of new crypto regulation in South Korea, such enforcement measures may become more widespread, ”he said..

So far, the police have taken control of several Coinbit branches, including the head office in the Gangnam business district. Investigation continues.