South Korea Sentences Bitsonic CEO to Second Prison Term for Crypto Fraud

The CEO of South Korean cryptocurrency exchange Bitsonic, Jinwook Shin, has received a second prison sentence for fraud, intensifying the nation’s crackdown on crypto misconduct. The Daegu District Court sentenced Shin to an additional six months in prison on July 18, 2025, for manipulating Bitsonic Coin (BSC) trading volumes and prices, defrauding investors of 160 million won ($115,000). This follows his earlier seven-year sentence for stealing 10 billion won ($7.5 million) in customer funds.

Shin’s fraudulent scheme involved falsifying trading data and using fake KRW points to purchase Bitcoin and Ethereum, which he converted into cash for unrelated investments. The court highlighted the severe damage to investor trust and the crypto ecosystem, noting Shin’s lack of remorse.

South Korea, a global crypto hub, is tightening regulations to curb such fraud. The Financial Services Commission (FSC) urges investors to prioritize platforms with robust security and transparency. Bitsonic, which ceased operations in August 2021, faces an uncertain future as legal actions continue against other executives.

This case underscores the need for rigorous oversight in the crypto industry. Investors are advised to perform due diligence, avoid speculative schemes, and choose exchanges compliant with South Korea’s stringent regulations. As the nation strengthens its legal framework, such convictions aim to restore confidence and ensure a secure digital asset market.