South Korean Exchange, Coinbit, Accused Of Wash Trading 99% Of Its Volume; Profited Close to $84 Million

  • South Korean exchange, Coinbit, was accused of wash trading 99% of its trade volumes by authorities.
  • Coinbit netted over 100 billion Korean won (KRW) through wash trading.
  • There are large discrepancies in the exchange’s accounts.

One of Korea’s largest cryptocurrency exchange is under investigation after the Seoul Metropolitan Police found evidence of wash trading of over 99% of its volumes. According to local reports from Seoul Shinmun, the police have seized Coinbit exchange headquarters in Gangnam district and some property around the country as investigations continue. Trading has since been suspended.

Wash trading is a tactic used by cryptocurrency exchanges using ‘ghost’ accounts to inflate the volumes recorded on the exchange. According to the report over the past few months, the exchange has made over 100 billion KRW ($84 million) from wash trading its volumes.

Coinbit is the large largest cryptocurrency in Korea, with over 275,000 daily active users on the platform. The Seoul Metropolitan Police is charging the top management of the exchange, including the owner, Choi Mo, for fraud affecting every one of the traders on the exchange.

The investigations found out that 99% of the total trades on major crypto pairs such as Bitcoin (BTC), Tether (USDt), and Ethereum (ETH) were wash traded. Most of these trades arose from ghost accounts as no corresponding deposits and withdrawals were shown on the exchange’s books.

The management is also accused of tampering with the market holding the small-cap cryptocurrencies. The report states that the top directors realized market margins through whale buy and sell transactions of certain coins to move the market – much like a pump and dump scheme.

The cryptocurrency field has seen cases of wash trading plummet over 40% in the first half of the year, but enough is yet to be done to curb this harmful practice. In July, BEG reported Canadian exchange, Coinsquare was accused of wash trading its volumes by the Ontario Securities Commission (OSC).

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi Growth & Stablecoin Surge Most Bullish Crypto Development: DCG State of Crypto 2020 Survey

39% of the respondents that involve 150 portfolio companies see DeFi as the most bullish crypto development of 2020, as per the DCG Founders...

Non-Custodial Bitcoin Exchange, Hodl Hodl, Launches Lending Service Without KYC

Hodl Hodl, a non-custodial Bitcoin exchange, is launching a KYC-free lending product for its customers. The exchange claims that its lending product would be...

Total Value Locked in Harvest Finance Surpasses $1 Billion, Up 366,200% Since September

Decentralized platform Harvest Finance that provides users a way to farm assets for the highest yields now has more than a billion dollars in...

Strong Institutional Demand for Bitcoin, CME Becomes Second Largest BTC Futures Market

Bitcoin's price made a big shift this week as the bulls gained control of the market and pushed it past $13,000. A similar shift has...

PoolTogether's ‘No Loss' Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners

Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today