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Police Raid This Bitcoin Exchange For Fake Volume

It is stated that the Seoul Police raided local crypto exchange Coinbit for allegedly inflating trade volumes.

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Police Raid This Bitcoin Exchange For Fake Volume.

Seoul Shinmun, South Korea’s oldest newspaper, published the report on Wednesday, saying Coinbit’s offices were raided for alleged fraud. The exchange has been accused of using multiple “ghost accounts” to inflate trading volumes.

About 99% of Coinbit’s trading volume is said to have been manipulated in recent months, resulting in “unfair profits” of at least 100 billion won (about $ 84 million) for the exchange and its team. Coinbit’s accounting practices are also weak, according to the report.Coinbit reportedly halted operations during an ongoing investigation by the police.

Emphasis on Decentralized Stock Markets

In light of the Coinbit situation, MakerDAO’s business development partner in the Asia-Pacific region, Doo Wan Nam, suggested users to trade via decentralized exchanges.

South Korea-based crypto exchanges and firms will face stricter rules from next year as the country has recently amended a law that will officially bring cryptocurrencies into its legal system.

 

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