In January of last year, two Komind executives took advantage of their access to the exchange’s platform and manipulated transactions leading to them scamming investors. But on the 19th of January 2019 Koimid CEO known by his surname Choir and his accomplice Park Mo were found guilty and sentenced to jail. The latter was sentenced to a two jail term for his involvement in scamming investors while the former will serve three years in prison. Park Mo was the director of Komind and was found guilty of misconduct, embezzlement, and fraud.
According to information from local news outlet blockinpress, the two senior Komind leaders pulled the fraudulent scheme by setting up a nickname account at the platform. They went ahead and operated the account just like any other account, but the account didn’t hold a lot of cryptography or capital. Furthermore, besides just using the fake account files, the court showed the two might have used a bot to dupe investors. The bot was in place to create large orders automatically which in turn will fool customers. Moreover according to a statement from one of Mo Choi defendant manipulated the point balance by keying in false data in an actual password currency transactions. But to avoid suspicion, they repeated the initial orders artificially. The whole scheme was carried out by the two in January. From their activities, they were able to create 5 million passwords which helped them generated $45 million.
Choi was a Common Fraudster
The case involving the two was lodged in the South District Court in Seoul court by defendants and through the prosecutor presenting strong evidence, the two were found to be guilty. Besides sending them to jail, the judge also said;
“Choi is a serial scammer he has scammed a lot of other victims for quite some time. It’s a shame that the financial authorities have failed to stop him on his tracks. Moreover, they are failing on their legal mandate of managing the crypto industry.”
Apart from Komind executives, other executives under other platforms who have been indicted in court include two from Upbit’s executive arm. One was an Upbit employee while the other was an Upbit’s developer. The two were only charged but weren’t detained. Similarly, Bithumb exchange denied allegations that it also faked its trading volumes. The cryptocurrency sector is facing a lot of challenges be it hacking incidences, scamming or fraud but through the courts, those found guilty are jailed.