As Modern Consensus reported in late August, Coinbit was confiscated by the authorities over alleged fraud and faking over 99% of its trading volume through wash trading. Police believe the manipulation occurred between August 2019 and May of this year, with a ghost account used to inflate the transaction volume, the report said.
Police seize ‘major’ South Korean crypto exchange Coinbit, 99% of volume was fake
Law enforcement raided Coinbit’s offices, confiscating $84 million in allegedly illegal profits and searching several locations including the firm’s Seoul headquarters
South Korean law enforcement estimates that Coinbit raked in at least 100 billion won (over $84 million) through its alleged unfair practices. The exchange’s actions are believed to have negatively affected its 252,000 monthly active users.