According to a Korean news publication Blockinpress, two leaders of the Komid cryptocurrency exchange, registered in South Korea, were sentenced to imprisonment.
CEO Choi Hönsuk and executive director Pak Mo were convicted of falsifying trading volumes on the exchange. They were found guilty and sentenced to three and two years in prison, respectively.
It was reported that Choi and his partner created more than five accounts on the exchange and used them to complete transactions in order to overstate the daily trading volume. Choi was also accused of developing and installing a cryptocurrency bot application on the platform for executing large trade orders.
According to the prosecution, they fabricated more than 5 million transactions, while at the same time giving their customers a false impression of activity on the exchange and daily increase in trading volume.
It became known that thanks to these frauds, the former directors of the Komid exchange earned more than 45 million dollars.
Wash Trading tactics is an artificial imitation of trading activity on the platform. This is a fairly common phenomenon in the cryptoindustry, although this is the first time that fraudsters have been behind bars for such actions.