Shin Jinwook, the disgraced CEO of defunct South Korean crypto exchange Bitsonic, has received an extension to his prison sentence. The extension comes after he was found guilty of additional fraud involving the company’s native token, Bitsonic Coin (BSC), Digital Asset reported. The latest ruling, issued by Judge Seong Gi-jun of the Daegu District Court’s Western Branch, confirmed a further conviction for fraud amounting to at least 100 million won, or approximately $72,000.
The sentence adds to Shin’s already severe legal troubles, as he is currently serving a seven-year term handed down in August 2023. His crimes span multiple layers of deception, including market manipulation, falsification of records, obstruction of business operations, and embezzlement of customer funds. In the latest verdict, Shin was found to have manipulated BSC token prices and trading volumes to mislead investors into believing the project was thriving.
The court found that Shin issued false announcements and used fraudulent Korean won points to artificially increase the trading activity of the BSC token. He then used investor funds and buybacks of the manipulated token to purchase Bitcoin and Ethereum, which he later liquidated for cash. Instead of using the proceeds to support the exchange or reinvest in its ecosystem, Shin allegedly funneled the funds into unrelated ventures.
Although BSC is no longer listed or actively traded, CoinMarketCap data confirms that the token had a maximum supply of 500 million BSC during its operation. According to the court, Shin’s actions resulted in 160 million won in direct customer losses stemming from market distortion and false announcements. These developments have further cemented Shin’s role in what is now considered one of South Korea’s most notable crypto fraud cases.
Previous convictions paint a larger picture
This is not Shin’s first brush with the law. In August 2023, a South Korean court sentenced him to seven years in prison for misappropriating 10 billion won (roughly $7.5 million) from customer deposits. His illegal activities took place between January 2019 and May 2021 and included the fabrication of trading volumes and the injection of fake Korean won into the platform’s internal systems to simulate liquidity.
South Korean prosecutors also confirmed that Shin deceived users by publishing fake announcements about international partnerships and the platform’s expansion potential. These tactics helped attract retail investment into what appeared to be a growing platform, masking the internal liquidity crisis that would later cripple the exchange.
Shin’s fraud was eventually uncovered after customers reported failed withdrawal attempts. Investigations revealed that he had diverted millions of dollars in user deposits for personal use. His accomplice, known only as Mr. A, served as Bitsonic’s vice president of technology and was sentenced to one year in prison for developing a system that manipulated token prices and enabled Shin’s scheme.
From launch to collapse: Bitsonic’s brief and troubled history
Bitsonic launched in April 2018 with ambitions to become a leading Korean crypto exchange. The platform allowed trading pairs with Korean won and introduced its native token, BSC, which rewarded holders through a revenue-sharing and staking system. However, the exchange’s public image crumbled by mid-2021, as liquidity issues and service disruptions triggered widespread complaints. In August 2021, the company announced it would cease operations due to what it called “internal and external issues.” The announcement followed months of customer frustration over withdrawal delays and token performance failures. By then, prosecutors had already begun gathering evidence of deeper fraud.
The Bitsonic case is part of a larger wave of crypto-related fraud in South Korea, with authorities reporting nearly $3 billion in losses between 2017 and mid-2022. Shin’s conviction is one of the few that resulted in significant jail time, highlighting a growing regulatory crackdown on fraudulent actors in the digital asset space.