Two leaders of the South Korean cryptocurrency exchange Komid were reportedly sentenced to serve jail time for faking exchange volumes, Korean crypto media outlet blockinpress reports on January. 18.

The exchange’s CEO, surnamed Choi, received a three-year sentence, whereas another company leader with an unspecified role was supposedly sentenced to 2 years imprisonment for fraud, embezzlement and misconduct, the article notes.

The charges reportedly outline a scheme where the exchange faked five million transactions so as to inflate the volume, that reportedly earned them $45 million. it's conjointly suspected that the corporate used a bot to automatically produce massive orders and attract new users. The article quotes the choose saying:

“Choi has committed fraud for a countless number of victims for an extended period of time…. Futhermore [sic], he holds the monetary authorities accountable for failing to keep track of the industry better.”

As Top Market Group reported in December of last year, South Korea’s largest cryptocurrency exchange Upbit denied accusations it had manipulated its order book once regulators indicted 3 of its employees.

Citing reports from the Seoul District Prosecutors workplace, The Korea Times said at the time that 2 senior executives from Upbit’s developer Dunamu and one Upbit employee are indicted, however not detained, as a part of an investigation into the proceedings.

Earlier within the same month, South Korea-based cryptocurrency exchange Bithumb conjointly denied allegations of faking trade volume.

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