Bitsonic CEO Faces Second Jail Term Over Crypto Fraud in South Korea
By Sujha Sundararajan | Updated August 5, 2025
The CEO of South Korean crypto exchange Bitsonic, Shin Jin-wook, has been sentenced to a second jail term in connection with another fraud charge, marking a significant escalation in legal troubles for the once-prominent executive.
Background: Prior Conviction and New Charges
Shin already faces a seven-year prison sentence for his involvement in the theft of approximately 10 billion won (around $7.5 million) of customer deposits. This high-profile case initially shocked South Korea’s cryptocurrency community by unveiling deep-rooted fraudulent activities within the industry.
The new conviction was handed down by the Daegu District Court, with a judge finding Shin guilty of manipulating the trading volume and market price of Bitsonic Coin (BSC), a token related to the exchange. This case centers around the CEO’s deliberate inflation of trading metrics to deceive customers and investors.
Details of the Bitsonic Coin Fraud
According to court documents, Shin defrauded customers of approximately 160 million won ($115,000) through false announcements and misleading promotional activities that induced transactions in BSC tokens. The CEO inflated the trading volume and market price to artificially drive demand and investor interest.
Further, Shin manipulated the system by using false KRW points obtained through buybacks to acquire major cryptocurrencies like Bitcoin and Ethereum from members of the exchange. He then covertly converted these digital assets into cash and diverted the funds to invest in companies unrelated to Bitsonic.
Complicating matters, Shin falsified the lockup period for investments, preventing investors from recovering their principal or any accrued interest. When these discrepancies came to light, victims were unable to reclaim their funds, sparking further legal action.
Judicial Remarks and Sentencing Considerations
During sentencing, Judge Seong Gi-jun acknowledged that although Shin had not reached a full agreement with all victims, he admitted to his wrongdoing and expressed remorse. The judge also considered the circumstances and motives behind the crime when determining the sentence.
“The sentencing conditions, including the motive and circumstances of the crime, were taken into consideration,” said Judge Seong. The verdict underscores the court’s intention to send a clear message against financial malfeasance in South Korea’s cryptocurrency sector.
Previous Sentences and Legal Context
In February 2024, Shin and Bitsonic’s Chief Technology Officer (CTO), surnamed Bae, received a combined total of eight years’ imprisonment for manipulating cryptocurrency prices to amass illicit profits. At that time, the Seoul District Court noted that Shin had reached agreements with the two victims who suffered the largest financial losses.
The judge also highlighted the fact that neither Shin nor Bae had prior records of similar crimes, which contributed to the relatively lenient sentences. However, under South Korean law, defendants retain the right to appeal both guilty verdicts and sentencing in higher courts, including the High Court and the Supreme Court.
Impact on the Crypto Industry
This latest development amid Shin’s ongoing legal battles serves as a stark reminder of regulatory and compliance challenges the cryptocurrency industry faces in South Korea. Bitsonic was once regarded as a growing player in the crypto exchange market, but these scandals have severely damaged public trust.
Industry observers suggest continual scrutiny and increased transparency measures may follow, as authorities seek to protect investors and maintain integrity within the digital assets ecosystem.
Cryptocurrency Market Update (as of August 5, 2025):
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- Ethereum Gas Price: 0.29 gwei
About the Author:
Sujha Sundararajan is an award-winning cryptocurrency journalist recognized as a "Women In Crypto 2024" by BeInCrypto. She has extensively covered blockchain and cryptocurrency developments since 2017. —
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