South Korean Exchange Coinbit Arrested For Fake Volume

[abel1337]

Looks like exchanges from South Korea and other shady exchange will be more careful about there schemes now, It's a good thing that authorities started their move on busting this exchanges who are doing this kind of scheme even though it takes them long enough but it's alright since investigations and procedures are required on a bust like this. This could be a sign that they are being more serious in cryptocurrency, This could be a stepping stone in crypto adoption in South Korea.

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[Strongkored]

In my opinion what is the South Korean government doing is because they have already taxed crypto so that the exchange is audited and through the audit it will be seen that they committed the crime.
Many other exchanges are doing the same thing, it's just that they operate in countries that are not too concerned about crimes in crypto that exchanges commit via fake volumes.

[Rowenta]

It's not bad that south Korean government are now tackling crypto exchanges in their countries, I expect many other countries to join this type of strict regulations against exchanges with fake volumes and wash trading, the next one on my list is p2pb2b exchange band exmarket.

[Malam90]

Coinbit, South Korea’s third-largest cryptocurrency exchange, has reportedly been seized by police over allegations it faked most of its trading volume.

According to a report from Seoul Newspaper on Tuesday, local police raided and confiscated the company's Gangnam headquarters and other premises.
Accused of fraud, the firm's owner, Choi Mo, and other managers are said to have artificially inflated volumes on the exchange by using "ghost" accounts to make fake trades, a practice known as wash trading.

In its report, Seoul Newspaper said it had been informed by insiders of corruption at Coinbit months ago and that up to 99% of trading volume was "manipulated" on the platform.
Police allege wash trading at Coinbit had produced over 100 billion won ($84 million) in faked income.

The newspaper said it had put off reporting its findings until the raids at the request of the Investigation Department of the Seoul Metropolitan Government.
An accounting firm had reportedly refused to work with the firm after viewing its books.

Seoul Newspaper said it had seen the books and that 99% of recorded trades could not be associated with deposits or withdrawals.

https://www.coindesk.com/south-korea-crypto-exchange-coinbit-seized-allegations-fraud-wash-trading


Coinbit https://coinbit.co.kr/ not Coinsbit https://coinsbit.io/

It's a good action by South  Korean Police because fake volume is so illegal that lead investors to misguidance. Not only Coinsbit exchange is associated with such heinous activities, but also Kucoin, Probit, Vindax and other exchanges use bot to make fake volumes that i am facing when trading there. Such exchanges should be punished to stop this fake activities.

[bearexin]

It is ridiculous how these exchanges are always forcing things and taking their volumes to mislead investors, it’s very bad. At the end they are now the ones that are regretting, they have been caught by the government and this will serve as a lesson as other exchanges there that are planning to do the same, you don’t just deceive people like that and go free.

Instead of inflating their trade volume, they should have just put in some hard work and money to promote their platform and attract more investors instead of faking everything, because all these faking trade volumes wouldn’t get them to no where, so it doesn’t make any sense.

[MikeyVeez]

Wash trading and reporting fake volume is a criminal offense? I didn´t know it, but how the other exchanges do that that they still operate even everyone knows that they do it? List of exchanges with fake volume: P2PB2B, Latoken and Bithumb.

[kindbtc]

Coinbit, South Korea’s third-largest cryptocurrency exchange, has reportedly been seized by police over allegations it faked most of its trading volume.

According to a report from Seoul Newspaper on Tuesday, local police raided and confiscated the company's Gangnam headquarters and other premises.
Accused of fraud, the firm's owner, Choi Mo, and other managers are said to have artificially inflated volumes on the exchange by using "ghost" accounts to make fake trades, a practice known as wash trading.

In its report, Seoul Newspaper said it had been informed by insiders of corruption at Coinbit months ago and that up to 99% of trading volume was "manipulated" on the platform.
Police allege wash trading at Coinbit had produced over 100 billion won ($84 million) in faked income.

The newspaper said it had put off reporting its findings until the raids at the request of the Investigation Department of the Seoul Metropolitan Government.
An accounting firm had reportedly refused to work with the firm after viewing its books.

Seoul Newspaper said it had seen the books and that 99% of recorded trades could not be associated with deposits or withdrawals.

https://www.coindesk.com/south-korea-crypto-exchange-coinbit-seized-allegations-fraud-wash-trading


Coinbit https://coinbit.co.kr/ not Coinsbit https://coinsbit.io/

Although i hope investor funds and deposits will be safe there but if we analyse the situation closely market did required similar action long ago because most of the exchanges were doing this. I hope now exchanges will become honest and professional and will come up with neat, transparent and efficient platform with real volume otherwise such exchanges and people behind them should be trialed.

[el kaka22]

Arrested? I really didn't know that people could be arrested for something like this, that doesn't only tell us that there are laws against it but it also tell us that Korea really cares about crypto for real. In my country there are local exchange websites that allows you to trade fiat and bitcoin with other people, and they are faking their volume by a million mile and not only nothing happens to them, I am pretty sure nobody even cares about it as well, well customers do but not the officials who would arrest them for such a thing.

It is a great thing that Korea is actually going into this knowing full on well how much they care about bitcoin and crypto, they have always been a high tech part of the world, I believe it is quite awesome that they are always adopting the most recent technology.

[electronicash]

Wash trading and reporting fake volume is a criminal offense? I didn´t know it, but how the other exchanges do that that they still operate even everyone knows that they do it? List of exchanges with fake volume: P2PB2B, Latoken and Bithumb.

they don't have office in South Korea that's how they do it. but i'm also interested to know the offense and what the law says that it considered a criminal offense in the country. the country seem very serious about cryptocurrency.  i've seen a report about the country's financial status and how cashless transaction evolve which is very much like a dream place for a crypto user, every thing is done through phones.

[thesmallgod]

Luring people to into trading by taking volume in order to rank high in crypto ranking site is a criminal offense which many websites are guilty of this. Only if some of other known exchange that do fake volume can be handled in such manner, it will increase the trust and confidence we have for few exchanges that don't fake volume

[Febo]

South Korean Exchange Coinbit Arrested For Fake Volume

Most if not all. Bithumb, Upbit, ...   I remember from Monero volume. Bithumb had tins and i dont know even one Korean to help develop Monero or be enthusiastic about it. It was all fake. And I am sure is with all South Korean exchanges. 90% or even more is fake volume. People that use crypto live in Europe and North America. Elsewhere are just few.

[adzino]

I am surprised that the police check the trading volumes of cryptocurrency exchanges and take adequate measures against violators. I think that the issue of possible concealment of income and, consequently, non-payment of taxes will be resolved here.

Coinmarketcap reacted very quickly to this news, making a warning sign for Coinbit.
-snip-

I doubt this has anything to do with faking the volume to save people from getting ripped off. Like I said before, one of the reason was that they were reporting fake income with those fake volumes. So I think it has something to do with money laundering and evading tax.
And when it is about money laundering to evade tax, the government will do anything to stop you and get the tax money. After all, two things are inevitable as soon as we are born - death and tax. No matter how hard you try to evade your taxes, the taxman will eventually catch you up. I am surprised most of the people over here are thinking that the government was protecting their people LOL.

[Shallow]

This is really a new one, actually it's my first time of hearing such and to be frank as well it is a good one because this will keep a good number of exchanges in check. Although there are many exchanges still doing this, but this is actually a good step, because I believe it is better to have few trustworthy and reliable exchanges than having a whole lot of exchanges with nothing to offer than fake volume. Nevertheless, I hope in the light of this, investors assets are safe, because it will be bad if there assets are tampered with.

[Lizzylove1]

Coinsbit has always been a suspicious exchange, they make promises and never keep to it. These fraudulent exchanges are the reason why some traders make a wrong choice by trying to trade on them and end up been disappointed. Why not build a system to last!

[eaLiTy]

corruption at Coinbit months ago and that up to 99% of trading volume was "manipulated" on the platform.
Police allege wash trading at Coinbit had produced over 100 billion won ($84 million) in faked income.

The newspaper said it had put off reporting its findings until the raids at the request of the Investigation Department of the Seoul Metropolitan Government.
An accounting firm had reportedly refused to work with the firm after viewing its books.

This is the only aspect i like about regulation, you cannot fake your trading volume and you are not able to manipulate anything and if you do it will have repercussion that will land the individual or the team behind bars and it is a great news that an exchange who thought they would get away with these common practices in the cryptocurrency space would land them in trouble eventually as regulations and the government start keeping a closer watch and hopefully we could get rid of these fake volumes and manipulations from exchanges in the next couple of years.

[CaVO32]

corruption at Coinbit months ago and that up to 99% of trading volume was "manipulated" on the platform.
Police allege wash trading at Coinbit had produced over 100 billion won ($84 million) in faked income.

The newspaper said it had put off reporting its findings until the raids at the request of the Investigation Department of the Seoul Metropolitan Government.
An accounting firm had reportedly refused to work with the firm after viewing its books.

This is the only aspect i like about regulation, you cannot fake your trading volume and you are not able to manipulate anything and if you do it will have repercussion that will land the individual or the team behind bars and it is a great news that an exchange who thought they would get away with these common practices in the cryptocurrency space would land them in trouble eventually as regulations and the government start keeping a closer watch and hopefully we could get rid of these fake volumes and manipulations from exchanges in the next couple of years.

If other governments will follow this initiative, we will be seeing more of these crypto exchanges go down in history. Now, I am wondering in what jurisdiction is P2PB2B under? I hope this is a warning to these exchanges that are heavily practicing wash trading in their platform just to give false image about their trading performance. But unfortunately, a lot of these exchanges are licensed in Estonia or other small countries that have very loose regulations when it comes to crypto.

[BChydro]

Coinsbit has always been a suspicious exchange, they make promises and never keep to it. These fraudulent exchanges are the reason why some traders make a wrong choice by trying to trade on them and end up been disappointed. Why not build a system to last!

There can be a number of reason why people are choosing these exchanges including the fake volume and the limit they can trade and withdraw without verifying the account but faking the volume is a serious issue and it is catching up when the authorities start monitoring their trade books i expect more exchanges getting into trouble.

[Reid]

And I bet they are not just the exchange out there who does it. 

Whoever reported it must be one of its competitors in the same industry.
Take out one and somehow it could boost your own.
Copy the fake volume and number of traders then you are on top. Just slide some money with the authority. 

[Princejebs]

I don't have enough evidence to backup my claims, I would have like to mention some of this exchanges with no volume and wash trading. This activities has been going on for long time and some of these exchanges are making traders believe their exchange worth giving a try. When you trade with market order, you will realize that most of their order book isn't actually what displayed and its making traders loss.

[Finestream]

In its report, Seoul Newspaper said it had been informed by insiders of corruption at Coinbit months ago and that up to 99% of trading volume was "manipulated" on the platform.

Imagine that, so if it's true then 1% of the current volume reported per https://coinmarketcap.com/exchanges/coinbit/  is only over $2 million.
This is a good initiative by the authorities, I'm sure there's a lot of exchanges that are doing the same deception to the people, and their business should be close so the risk will be reduce in the space.

What CMC did (https://coinmarketcap.com/rankings/exchanges/) ranking the exchanges using different factors to determine its real volume is great, now we can avoid from using the exchanges that are faking their volume, but they should also not exempted in facing the consequences of their illegal actions.