One of the most popular crypto exchanges in South Korea, Coinbit, has been invaded by the Seoul Police on August 26, <a href="https://amp.seoul.co.kr/m/20200826500049" target="_blank" rel="noopener">reported</a> a local news outlet Seoul News.

The local news outlet in its report further mentioned that the local authority recently found about Coinbit’s illegal approach for generating fake trading volume and earn millions of dollars. Reportedly, 99 percent of the South Korean exchange’s trading volume has been fabricated by it.
<h2>Coinbit Using Wash Trading Approach</h2>
According to the researchers, the fake trading volume is growing rapidly in the global crypto market. While explaining fake trading volumes, the researchers have stated that there is a possibility, 90 percent of transactions on exchanges are generated through bot trading. Further, they asserted that the bots trade back and forth to create an illusionary active market. 

The local police have claimed that the owner of Coinbit Choi Mo and his team members used the crypto exchanges account for buying and selling different tokens. This trading affected 252,000 monthly active users of South Korea-based exchange. 

The authorities described Coinbit members’ habit of working and said, 
<blockquote>“Coinbit made two exchange accounts containing all user funds. One account wash traded on major cryptocurrencies such as Bitcoin, Ethereum, XRP, and Tether trading pairs with ‘ghost’ accounts.”</blockquote>
<h2>Exchange Dispose Tokens On Gullible Retail Traders</h2>
Further, it has been alleged that the exchange used another account to trade illicit altcoins and ICOs. While trading, the exchange control the supply of tokens, manipulate its price, and then dump the tokens on gullible retail traders.

As per the report, Coinbit’s illegal approach along with wash trading helped the exchange in generating fraud income of more than $85 million.

Currently, the Coinbit is being questioned by South Korea’s local authority about its accounting practices. 

Seoul News also stated that it appears the exchange has been using some other approaches to create a fake trading volume.
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Seoul Police Seizes Coinbit For Faking Trading Volume Using Illicit Approach

One of the most popular crypto exchanges in South Korea, Coinbit, has been invaded by the Seoul Police on August 26, reports a local news outlet Seoul News.

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

Seoul Police Seizes Coinbit For Faking Trading Volume Using Illicit Approach

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