Komid CEO jail sentence stands after Supreme Court shoots down appeal
The jail sentence for the former Komid exchange CEO has been upheld after a lengthy appeals process by the Korean Supreme Court. CEO Choi was sentenced early in 2019 to serve time in jail for his role in creating fraudulent trading volume on the platform.
Supreme Court Chief Justive Cheolsang Ahn confirmed the 3-year jail sentence for Choi and the 2-year jail sentence for the majority shareholder and executive director today to close their final chance at appeals.
According to the prosecution, Choi and others created fake accounts on the exchange in January 2018. They assigned bots to the fake accounts to fraudulently trade untold sums of cryptocurrency in order to make orders on the order books seem legitimate. In this way, other real users could see the full order books and presume that trading volume on the exchange was high.
Choi was charged with washing trading upwards of $42 million through bots and fake accounts. He then further inflated transaction volumes by personally placing large orders with the fake accounts to collect about $25 million.
The prosecution made a strong case again Choi and his associates which stood through the initial case and appeals. They stated that the withdrawals made on the fake accounts were designed to allow Choi and his associates to skirt their financial tax responsibilities and to undermine investigative agencies tasked with watching over the exchange.
It is thought that many of the victims as part of the fraudulent trade volume have recovered at least some of what Choi wrongfully took from them.
Choi and his associates have exhausted their options for appeals and will serve jail time starting within the next few weeks.
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