South Korean Cryptocurrency Exchange Komid has been caught Faking trade volumes. The firms executives have been sentenced for 3 years of jail time.
According to Coindeskkorea, Komid crypto exchange had been using fake accounts since January 2018. These fake accounts are trading with each other by using trading bots and thus creating fake transactions in the crypto exchange.
And as per the
The crypto exchange CEO Hyunsuk Choi has received a sentence of 3 years jail time and another member of the firm Park Mo has been sentenced 2 years of jail time by the South Korean court.
The judgment was lead by South Korea’s top judge Ahn Seong-Joon, The judge said that Choi has been repeatedly committing fraud and many investors have been a victim to his frauds.
The judge also added that,
“The Firms has repeated the orders artificially and fooled investors as if transactions were happening smoothly.”[Translated]
The financial authorities are being questioned for failing to keep track of trade volumes in crypto exchanges. Because still there might be others who do a similar approach of fraud and as the awareness raises they will be caught soon too.
Let us know in the comments below what you think regarding fake trading volumes?
