Bithumb CEO Sentenced to 7 Years in Prison for Market Manipulation

IconCryptoNewsTerminal Staff24 Jul, 2024

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Bithumb CEO Sentenced to 7 Years in Prison for Market Manipulation

Bithumb CEO Shin has been sentenced to 7 years in prison on appeal for inflating the market capitalization and exchange trading profits of Bithumb's self-issued coin from January 2019 to May 2021. Shin was accused of establishing a paper company to manipulate the price of the coin and inflate exchange sales and operating profits. This sentence comes after an initial not-guilty verdict was overturned on appeal. The Seoul High Court's 5th Criminal Division ruled that Shin's actions constituted fraud under the Aggravated Punishment of Specific Economic Crimes Act. Shin's actions had a significant impact on Bithumb users, who lost an estimated 10 billion won (approximately $8 million) as a result of the manipulation. The case highlights the importance of regulatory oversight in the cryptocurrency industry and the need for strong enforcement of laws against market manipulation.

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