- Coinbit digital asset exchange has allegedly inflated its trading volumes.
- South Korean police have raided and seized the exchange.
- The alleged manipulation has reportedly resulted in “unfair profits” of more than $84 million.
South Korean authorities have reportedly raided and seized Coinbit, a local cryptocurrency exchange, for allegedly inflating trading volumes. According to a Seoul Shinmun report, the exchange is responsible for using several “ghost accounts” to inflate trading volumes.
Around 99% of Coinbit’s trading volume appears to have been manipulated in recent months. This has resulted in “unfair profits” of more than 100 million won ($84 million) for Coinbit. The report further noted that the exchange’s accounting practices are also substandard.
The exchange has halted all operations amid the ongoing investigation. Doo Wan Nam, MakerDAO’s business development associate in the Asia-Pacific region, has advised users to trade through decentralized exchanges.
Share
