The two leaders of the South Korean crypto currency exchange Komid was sentenced to prison for falsifying trading volumes. Cointelegraph reported, citing a local source.
So, exchange CEO by the name of Choi received three years in prison. Another representative of Komid received two years imprisonment for fraud, embezzlement of funds and other misconduct.
According to Korean authorities, the exchange has fabricated 5 million transactions in order to artificially increase trading volumes. The company used a special bot that automatically generate large orders that attracted users. This scheme has brought the management of the exchange of $45 million.
“Choi for a long time has acted fraudulently in relation to the huge number of victims”, — stated in court documents.
We will remind, in the autumn of last year, under pressure from the South Korean authorities closed the exchange Zeniex that launched the country’s first cryptocurrency Crypto ZXG Fund fund No 1.