Shin Jin-wook Sentenced Again for Fraud
Shin Jin-wook, the chief executive of South Korean cryptocurrency platform Bitsonic, has been sentenced again due to fraud allegations. Currently, he is already serving a seven-year prison sentence after being convicted of misappropriating customer funds worth approximately 10 billion won (around $7.5 million).
New Judgment from Daegu District Court
A recent judgment from the Daegu District Court highlighted further misdeeds involving Bitsonic Coin (BSC), resulting in an additional sentence for Shin. The court found that he had fraudulently engaged customers, raking in a total of 160 million won (nearly $115,000) by artificially boosting the trading volume and market prices of BSC.
This deception involved Shin making misleading announcements that spurred customers to trade tokens, which he then bought back using fake KRW points. He subsequently exchanged these assets for Bitcoin and Ethereum, which were later converted into cash and invested in ventures unrelated to the exchange itself. Furthermore, Shin misrepresented the terms of investment contracts, discovering too late that both principal and interest could not be returned to the investors.
Judge’s Remarks and Sentencing Factors
Judge Seong Gi-jun noted during the sentencing that while Shin expressed remorse and acknowledged his mistakes, his inability to settle his disputes with the victims weighed into the judgment. “The decision to impose this sentence considered various factors, including the motives and context surrounding the crimes,” explained the judge.
Previous Rulings and Legal Rights
In a previous ruling from February 2024, Shin and the chief technology officer of Bitsonic, known by the surname Bae, were collectively sentenced to eight years for manipulating cryptocurrency prices, which resulted in significant financial gains. At the time, the Seoul District Court acknowledged that Shin had reached compensation agreements with two of the victims who incurred the most substantial losses. Both Shin and Bae were assessed as first-time offenders, which contributed to the relatively light sentences.
It’s noteworthy that under South Korean legal procedures, defendants retain the right to challenge their convictions and sentences through appeals to higher courts, including the High Court and the Supreme Court.
