'Upbit Executives Accused of 150 Billion Won Bitcoin Scam Acquitted in First Trial'

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] The operators of the cryptocurrency exchange 'Upbit,' who were indicted for creating fake member accounts and embezzling 150 billion won, were acquitted in the first trial.

The Criminal Division 12 of the Seoul Southern District Court (Presiding Judge Oh Sang-yong) on the 31st acquitted Song Mo (41), chairman of Upbit operator company A, who was indicted on charges of fraud and forgery of electronic records, along with the company's CFO Nam Mo (44) and Quant Team Leader Kim Mo (33), who were also indicted.

They were accused of creating an ID named '8' on Upbit from September to November 2017 and fabricating that 122.1 billion won worth of assets were deposited under this ID. They then continued fake transactions to induce actual members to trade and gain profits, leading to their indictment in December 2018.

The prosecution applied fraud charges against the Upbit operators, claiming that they sold 149.1 billion won worth of Bitcoin, which did not actually exist, to 26,000 Upbit members.

However, the court ruled, "Based solely on the evidence presented by the prosecution, it cannot be recognized that Upbit deposited assets under the ID '8,'" and judged that "it is difficult to see that Upbit conducted transactions with virtual currencies it did not possess." Regarding Upbit's direct participation in virtual currency trading, the court also stated, "Under current laws, it cannot be considered that cryptocurrency exchanges are prohibited from participating in transactions themselves, and in light of the principle of good faith, it is difficult to see that the exchange has a legal obligation to notify that it participates in transactions."

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