Bitsonic CEO Sentenced Over BSC Scheme as Second Fraud Conviction Confirmed

Highlights:

• Bitsonic CEO received another prison sentence after defrauding investors through fake trading activity on the BSC token.
• Shin used false Korean won points to buy crypto and invested the money in businesses not linked to the exchange.
• The court linked the Bitsonic CEO to earlier fraud involving $7.5 million in stolen customer funds.

The Daegu District Court sentenced Shin Jin-wook, former CEO of the South Korean exchange Bitsonic, to prison again. The court found him guilty of defrauding investors through manipulation involving Bitsonic Coin (BSC). He caused losses of 160 million won by inflating both trading volume and the token’s price.

The #Bitsonic_Ex CEO just got extra jail time after scamming users by pumping their own token, $BSC 😬

Turns out he used fake data to trap investors, then cashed out into $BTC & $ETH

South Korean courts aren't playing when it comes to crypto fraud.#CryptoScam #Bitsonic #BSC…

— CryptoNinja (@CryptoNinjaPro) August 5, 2025

He used fake Korean won points obtained through token buybacks to purchase Bitcoin and Ethereum from Bitsonic customers. Then, he converted those digital assets into cash and used the funds to invest in companies unrelated to the exchange. The court revealed that he also altered the lockup period to delay redemptions. However, investors could not retrieve their money or receive any interest from their locked assets.

Judge Seong Gi-jun said that although Shin did not settle with the victims, he accepted his actions and reflected on the consequences. The judge also explained that the court considered the motive and the situation surrounding the crime while deciding the sentence. This marked Shin’s second conviction for defrauding Bitsonic users.

Bitsonic CEO Sentenced Again After Previous $7.5 Million Fraud Conviction

Before this case, Shin had already faced a seven-year sentence in August 2023 for stealing 10 billion won from customer deposits. The court had determined that he had altered the numbers of exchanges and fabricated records to mimic cash deposits made from January 2019 to May 2021. He similarly defrauded investors by making false claims of collaborations with foreign platforms in order to win their confidence.

The chief technology officer of the exchange, named Bae, assisted Shin in creating a system that drove up the price of tokens. The program purchased cryptocurrency already held by Shin to increase its market value artificially. Bae received a one-year prison term for supporting the illegal activity. At the time, the court issued a lenient sentence because Shin had reached agreements with two victims who suffered the most significant losses. The court also took into account that both Shin and Bae had no prior criminal records.

Similar legal outcomes have appeared in other regions. In the United States, a federal court sentenced NAC Foundation founder Rowland Marcus Andrade to seven years in prison. The court convicted him of wire fraud and money laundering related to investor funds.

Rowland Marcus Andrade, founder of AML Bitcoin, has been sentenced to 7 years in prison for orchestrating a crypto fraud scheme that defrauded investors out of $10 million. This case is a significant reminder of the ongoing risks in the cryptocurrency market and the importance of…

— Polaris Advisory (@polarisadvisory) August 2, 2025

Exchange Shutdown Followed Collapse of the BSC Token

Bitsonic was launched in 2018 and provides Korean won pairs and rewards to users holding its native token. Customers could stake or unstake BSC and select liquidity or token rewards by exchanging it. However, Bitsonic went out of business in August 2021, citing internal and external issues. Prior to its shutdown, the customers complained about the lack of liquidity and failure to access the funds.

BSC token was initially capped at 500 million tokens, which are now unlisted in all trading markets. Many investors could not get back their money or assets since the shutdown occurred. In a different U.S. case, Braden Karony, the former CEO of SafeMoon, was convicted of conspiracy to commit securities fraud and money laundering.