Bezop(BEZ)

Shin was found guilty of fraudulently manipulating crypto prices and trading volume on Bitsonic from January 2019 to May 2021 using the buyback method.

The arrest comes just one day after Haru posted a "no information" update.

South Korean financial regulators accused Delio of fraud and embezzlement and seized its assets in July earlier this year.

South Korean authorities have arrested the CEO of the Bitsonic crypto exchange, Jinwook Shin, for allegedly stealing $7.5 million dollars of user funds. Embezzlement Allegations Jinwook Shin was taken into custody by South Korean authorities on August 7th after an investigation uncovered that the CEO had been allegedly embezzling investments and deposits belonging to the exchange's users during the time period between January 2019 and May 2021. According to the initial report, Shin allegedly engaged in fraudulent activities that manipulated cryptocurrency prices and trading volume on Bitsonic, which led to the misappropriation of approximately $7.5 million (10 billion won) from user funds. Liquidity Issues Leads To Shutdown Despite facing liquidity problems and suspension of withdrawals on the crypto platform, Shin continued to provide cryptocurrencies to new customers. This persistence drew the attention of the Seoul cyber crime department, which alleged that Shin failed to purchase cryptocurrencies during this period, raising suspicions about the legitimacy of the exchange's operations. In August 2021, the platform finally announced the closure of its operations, attributing the decision to "internal and external issues." This announcement was followed by the shutdown of 11 domestic cryptocurrency platforms by South Korean authorities, who were investigating alleged fraudulent activities. Vice President Also Complicit The investigation further implicated the vice president of Bitsonic, who is believed to have played a role in devising a scheme to acquire the cryptocurrencies held by the CEO within the exchange system. The VP, who is referred to as Mr. A, was allegedly working hand-in-hand with Shin to buy the cryptocurrency held by the latter on the exchange platform. A shell company established in Singapore was allegedly used in the process of manipulation. Government's Stance Against Fraud And Cybercrime South Korean authorities have recently taken a tough stance against fraudulent activities within the digital asset industry. Last month, the Korea Securities Depository partnered with Code, a firm specializing in Travel Rules, to address the rise in unlawful activities within the virtual asset market. This partnership aims to promote the issuance and utilization of Legal Entity Identifiers (LEI) to enhance investor protection. Additionally, the government has also been working on a crypto-tracking system, including an interagency investigation team, to counter cybercrime as a part of its commitment to ensuring the security and legitimacy of the cryptocurrency market. As the investigation into the alleged embezzlement unfolds, South Korea's proactive approach against fraudulent activities in the cryptocurrency sector continues to underscore the nation's commitment to fostering a secure and trustworthy digital asset environment. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

South Korean authorities have arrested the CEO of the Bitsonic crypto exchange, Jinwook Shin, for allegedly stealing $7.5 million dollars of user funds. Embezzlement Allegations Jinwook Shin was taken into custody by South Korean authorities on August 7th after an investigation uncovered that the CEO had been allegedly embezzling investments and deposits belonging to the exchange's users during the time period between January 2019 and May 2021. According to the initial report, Shin allegedly engaged in fraudulent activities that manipulated cryptocurrency prices and trading volume on Bitsonic, which led to the misappropriation of approximately $7.5 million (10 billion won) from user funds. Liquidity Issues Leads To Shutdown Despite facing liquidity problems and suspension of withdrawals on the crypto platform, Shin continued to provide cryptocurrencies to new customers. This persistence drew the attention of the Seoul cyber crime department, which alleged that Shin failed to purchase cryptocurrencies during this period, raising suspicions about the legitimacy of the exchange's operations. In August 2021, the platform finally announced the closure of its operations, attributing the decision to "internal and external issues." This announcement was followed by the shutdown of 11 domestic cryptocurrency platforms by South Korean authorities, who were investigating alleged fraudulent activities. Vice President Also Complicit The investigation further implicated the vice president of Bitsonic, who is believed to have played a role in devising a scheme to acquire the cryptocurrencies held by the CEO within the exchange system. The VP, who is referred to as Mr. A, was allegedly working hand-in-hand with Shin to buy the cryptocurrency held by the latter on the exchange platform. A shell company established in Singapore was allegedly used in the process of manipulation. Government's Stance Against Fraud And Cybercrime South Korean authorities have recently taken a tough stance against fraudulent activities within the digital asset industry. Last month, the Korea Securities Depository partnered with Code, a firm specializing in Travel Rules, to address the rise in unlawful activities within the virtual asset market. This partnership aims to promote the issuance and utilization of Legal Entity Identifiers (LEI) to enhance investor protection. Additionally, the government has also been working on a crypto-tracking system, including an interagency investigation team, to counter cybercrime as a part of its commitment to ensuring the security and legitimacy of the cryptocurrency market. As the investigation into the alleged embezzlement unfolds, South Korea's proactive approach against fraudulent activities in the cryptocurrency sector continues to underscore the nation's commitment to fostering a secure and trustworthy digital asset environment. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The South Korean Financial Services Commission's (FSC) decision to seize Delio’s assets cast doubts over its future operations. South Korea's crypto lending powerhouse, Delio, established in 2018, is currently navigating stormy waters. Its woes began when the FSC, a local financial watchdog, took control of both the company's and its customers' assets. This included not just the tangible assets but also their cold wallets and ledgers. The seizure, a result of an ongoing legal tussle with its depositors, has put Delio in a tight spot, making it challenging for them to offer their regular suite of services. A suspension of interest payments The firm has emphasised the need to safeguard its assets, especially considering the interests of its depositors. In light of these events, Delio made the tough call to suspend interest payments to its deposit and vault users starting July 24. This move was not isolated; other services that demanded additional expenditures, like operational costs, were also put on hold. Deposits and withdrawals stopped This decision has understandably heightened concerns among their clientele. Delio's recent actions can be traced back to June 14 when they abruptly stopped deposits and withdrawals on their platform. This move was a protective measure against market volatility, which was exacerbated by similar actions from their sister lending company, Haru Invest. Haru Invest's decision to halt withdrawals was influenced by the discovery of misleading information from its consignment operator, B&S Holdings. FSC gets involved The FSC's involvement deepened when they initiated an investigation into Delio's sudden transaction suspension. This probe culminated in a lawsuit against Delio, accusing them of fraud, embezzlement, and breach of trust. The fallout from this legal action saw travel restrictions placed on Delio's CEO, Jeong Sang-ho, among others. One of the largest crypto lending platforms Despite the shadows currently cast on Delio, it's vital to recognize their significant standing in the crypto realm. They are one of South Korea's premier crypto lending platforms, boasting a vast array of services from custody to staking. Their impressive portfolio includes about $1 billion in Bitcoin, $200 million in Ether, and a staggering $8.1 billion in various other altcoins. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Binance’s crypto custody licence application has reportedly been rejected by the German BaFin regulator. Another setback Still the largest crypto exchange in the world by trading volume, Binance is continuing to labour into strong headwinds, suffering regulatory pushback in some European countries, and of course currently being sued by the US regulator. The latest setback for Binance was reported by the German-based Finance Fwd website. The article stated that the BaFin regulator had either officially denied a crypto custody licence application, or had verbally notified Binance that its licence had been rejected. A spokesperson for Binance was quoted as saying: “Even if we cannot share details of our discussions with the regulators, we will continue to work to meet Bafin's requirements. It is an ongoing process” They added: “We are confident that we have the right team and the appropriate measures to continue our discussions with the regulatory authorities in Germany.“ The rejection in Germany will be a difficult pill to swallow for Binance’s CEO Changpeng Zhao, better known as CZ. The ongoing defence of his company and him personally in the US is a weight around the neck of the crypto exchange. Battlegrounds need to be won With such a globally important regulator as the Securities and Exchange Commission (SEC) accusing CZ of embezzlement of customer funds among other allegations, obtaining regulatory licences in other countries is going to be difficult, at least until it is known how the accusations are likely to pan out. Given that Binance is such an important exchange in the crypto ecosystem many may be hoping that it is able to resist the SEC. Both Binance and Coinbase are very important battlegrounds that need to be fought and won if the crypto industry is to reinject some momentum into the beleaguered asset class. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The crypto community has rallied behind respected blockchain sleuth ZachXBT just days after disclosing a lawsuit related to a previous investigation. Donations to ZachXBT have poured in from across the crypto community and have crossed over $1 million so far to help fund his legal defense. Donations Pour In Following the disclosure of the lawsuit, the blockchain sleuth posted a digital wallet address on his official Twitter handle, along with details of the lawsuit filed against him by Jeffrey Huang. Huang is a Taiwanese-American musician and tech entrepreneur. ZachXBT described the lawsuit as troubling and called it a “David and Goliath” story. “It’s unfortunate I have to make this thread, but I am being sued by MachiBigBrother for an article I published in June 2022. Today Machi filed a defamation lawsuit. The lawsuit is baseless and an attempt to chill free speech. I intend to fight back & defend free speech.” ZachXBT noted that his legal expenses could cost more than $1 million. However, in an example of how tight-knit the crypto community is, donations poured in, and within a day, ZachXBT’s donation wallet accumulated digital assets worth beyond the stated goal. According to Nansen Portfolio, a majority of donations primarily consisted of stablecoins. ZachXBT added that any leftover funds would be returned back to the donors on a pro-rata basis. “I am creating a donation address to assist with legal costs associated with the defense of this matter, which could easily exceed $1m USD. All leftover funds will be returned on a pro-rata basis to contributors.” Currently, the wallet contains over $650,000 worth of USDC, $274,000 worth of Tether, and several other cryptocurrencies, such as Ethereum (ETH) and Polygon (MATIC). Prominent Names Step In To Help Several users from a number of cryptocurrency exchanges also donated towards the effort, with ZachXBT’s donation wallet receiving funds from wallets linked to all major exchanges such as Binance, Kraken, OKX, Coinbase, Bitfinex, Bybit, 1inch, and Uniswap. Donations under the $100 mark number in the thousands, while several donations are between $10,000 and $50,000, as several prominent members from the crypto ecosystem also chipped in. Binance CEO Changpeng Zhao also made a donation of $50,000, urging ZachXBT to keep up the fight and help keep crypto transparent. The donation from Zhao comes even as the Binance CEO is himself grappling with a lawsuit filed by the United States Securities and Exchange Commission. Meanwhile, Tron founder Justin Sun also donated $10,000 worth of the True USD stablecoin. Sun also highlighted ZachXBT’s role in educating the crypto community, stating, “I’m pleased to pledge a donation of 10k #TUSD to @zachxbt. Despite not being a legal expert myself, I highly value Zach’s substantial contributions to blockchain security and his crucial role in guiding our users to safeguard their funds.” The Lawsuit Against ZachXBT ZachXBT was sued by NFT trader MachiBigBrother, also called Jeffrey Huang. ZachXBT had published a report about Huang last year, alleging that he had embezzled millions of dollars worth of crypto. MachiBigBrother filed the lawsuit against the blockchain sleuth in the United States District Court for the Western District of Texas, alleging that ZachXBT’s report caused serious monetary and reputational harm. The lawyer representing MachiBigBrother stated, “Without any regard for the ruinous effect that public allegations of criminal conduct can produce for the accused individual, [ZachXBT] not only proceeded to publish his defamatory article on Medium.com, he also maliciously promoted the article to his more than 300,000 Twitter followers.” ZachXBT faces one count of libel and one count of libel per se. The lawsuit also requests that the court order ZachXBT to pay actual and compensatory damages in addition to exemplary damages, the amount of which will be determined by the court. ZachXBT has emerged as one of the most prominent voices in the crypto space and has shone a light on several crypto projects and on-chain events. In the process, he has uncovered several potential scams and bad actors and studied exploits and hacks to find out their root causes. His detective work has also led to several real-world arrests and helped him amass a significant following, along with a place on the Consensus Magazine’s Most Influential 2022 list. However, the lawsuit has threatened to compromise ZachXBT’s identity after his name and place of residence were revealed. However, as the lawsuit progresses, the crypto and Web3 communities have come out in complete support through their donations. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Plaintiff Jeffrey Huang claims his reputation was damaged when ZachXBT allegedly falsely accused him of embezzlement.

Cooper Morgenthau embezzled $5 million from three different companies and lost almost all of it trading cryptocurrencies and "meme stocks."

South Korean authorities have taken several staff members of the cryptocurrency exchange Coinone for breach of trust and other criminal acts. Coinone Under The Scanner High drama took place at Coinone after it emerged that the exchange’s executives could go to prison. Prosecutors in South Korea have claimed that the executives in question had received billions to list specific cryptocurrencies on their platform. As a result, authorities detained several employees of the exchange. Coinone is one of the leading cryptocurrency exchanges in the country, often counted among the Big 4 crypto exchanges in South Korea. The arrest warrants were issued by Seoul Southern District Court Chief Judge Kim Ji-Sook, who stated that the employees in question could escape and deemed it necessary to detain them. According to the authorities, the head of Coinone’s listing division, Kim Mo, broke the Concealment of Criminal Proceeds Act. He also faced allegations of breach of trust, along with another individual, Hwang Mo. Details Of The Fraud As a listing broker, Hwang allegedly paid 2 billion won ($1.5 million) to Kim. These transfers were bribes in exchange for Kim listing specific cryptocurrencies on the Coinone platform. Authorities stated that the ex-director of Coinone, Mr. Jeon, also received payments to facilitate listing certain assets and circumvent listing procedures outlined for the exchange. Investigators claimed that one of the coins listed on the exchange could also be tied to a possible murder. “Furever Coin” listed on the exchange was tied to a possible murder in a case that involved the kidnapping of a 48-year-old individual from the Gangnam District of Seoul. Authorities suspect that the murder was in retaliation to a major crypto investment on Coinone that did not go as planned. One Of The Big 4 Coinone was founded in 2014 by Kevin Cha with the goal of serving crypto users based in South Korea. The exchange soon expanded to other countries, such as Indonesia, by 2017. Along with other exchanges such as UPbit, Bithumb, and Korbit, Coinone is part of South Korea’s infamous Big 4 crypto exchanges. Together, the four platforms handle over 90% of the crypto trading volume in the country. South Korean regulators had recently mandated several stricter rules that exchanges operating in South Korea needed to abide by. Coinone, along with a few other platforms, had fulfilled these requirements. South Korea was in the spotlight earlier in the week as well, following the GDAC hack. The platform lost nearly $13 million, which accounted for nearly 23% of the assets it had under its custody. GDAC has blocked deposit and withdrawal methods and has reported the issue to the relevant authorities. No Repeat Of The Do Kwon Saga South Korean authorities are keen to avoid a situation similar to the collapse of Luna/UST. As a result, authorities are far more determined to tackle crime and fraud when it comes to the cryptocurrency ecosystem in South Korea. Investors and agencies have blamed Kwon for being the mastermind behind the collapse of Luna and insist he faces the law. However, Do Kwon did not cooperate and went into hiding, with several counties such as Singapore, Russia, Mauritius, and Dubai mooted as possible destinations. A notice issued by the South Korean authorities and Interpol had no effect, and his whereabouts continued to remain unknown, with speculation that he was hiding in Serbia. Do Kwon was finally arrested in Montenegro and was charged by American prosecutors with commodities fraud, securities fraud, and conspiracy. However, it remains unclear if Do Kwon will face these charges in the United States of America or his homeland. South Korean authorities have come down heavily on cryptocurrency exchanges in the past as well. In February, authorities arrested the de-facto owner of Bithumb, the country’s largest cryptocurrency exchange, on charges of embezzlement and stock manipulation. Other executives of the exchange were also on the radar of the authorities. In January, authorities targeted another crypto exchange, V Global, arresting several executives after regulatory authorities filed a case. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The 36-year-old Austrian man logged into a public wireless network in the nation’s capital, Vienna and lost a considerable sum of $117k Bitcoins, equivalent to over 100k Euros. Investigations opened by the Austrian Police seem to suggest that the victim’s account may have been hacked prior to logging on through the restaurant’s unsecured network. This narrative unfortunately coincides with the already growing fear of security for such sensitive digital commodities like Bitcoin and Ethereum as they are gaining more and more traction every day. This situation is very reminiscent of the most infamous loss of Bitcoins, occurring in 2014, and involving the now former cryptocurrency exchange, Mt Gox. Because of a security breach on its platform, a major amount of cryptocurrency was stolen, leading to the business collapsing. Investigations into data manipulation and embezzlement were conducted on the former CEO of Mt Gox, Mark Karpelès, who is being tried in Japan over the allegations. Exchanges still rife with security breaches The recent security breach should remind you of a breach that occurred in August of last year. Approximately $65 was stolen from the Bitfinex exchange which left ripples in Bitcoin’s value on the crypto market, with prices lowering by nearly 20%. In turn, customers took to social media to inform others that their accounts had been drained of funds, dealing a massive blow to Bitcoin’s image. Bitcoin Soldiers On Despite the numerous security breaches putting crypto subscribers at risk of losing their much-valued funds, Bitcoin has continued to grow, reaching a new high of over $8000. This is very encouraging for new, potential investors who want to throw their money into the crypto market and a blessing for those that have already placed their trust in cryptocurrency.

The 36-year-old Austrian man logged into a public wireless network in the nation’s capital, Vienna and lost a considerable sum of $117k Bitcoins, equivalent to over 100k Euros. Investigations opened by the Austrian Police seem to suggest that the victim’s account may have been hacked prior to logging on through the restaurant’s unsecured network. This narrative unfortunately coincides with the already growing fear of security for such sensitive digital commodities like Bitcoin and Ethereum as they are gaining more and more traction every day. This situation is very reminiscent of the most infamous loss of Bitcoins, occurring in 2014, and involving the now former cryptocurrency exchange, Mt Gox. Because of a security breach on its platform, a major amount of cryptocurrency was stolen, leading to the business collapsing. Investigations into data manipulation and embezzlement were conducted on the former CEO of Mt Gox, Mark Karpelès, who is being tried in Japan over the allegations. Exchanges still rife with security breaches The recent security breach should remind you of a breach that occurred in August of last year. Approximately $65 was stolen from the Bitfinex exchange which left ripples in Bitcoin’s value on the crypto market, with prices lowering by nearly 20%. In turn, customers took to social media to inform others that their accounts had been drained of funds, dealing a massive blow to Bitcoin’s image. Bitcoin Soldiers On Despite the numerous security breaches putting crypto subscribers at risk of losing their much-valued funds, Bitcoin has continued to grow, reaching a new high of over $8000. This is very encouraging for new, potential investors who want to throw their money into the crypto market and a blessing for those that have already placed their trust in cryptocurrency.