Chairman Song Chi-hyung of Dunamu, Suspected of 'Upbit Wash Trading,' Also Acquitted in Second Trial

Song Chi-hyung, chairman of Dunamu, is delivering the opening speech to mark the opening of the 'Upbit Developer Conference (UDC) 2022' held on September 22 at the Busan Port International Exhibition & Convention Center (BPEX).
[Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] The operators of the cryptocurrency exchange 'Upbit,' who were indicted for embezzling 150 billion KRW by creating fake member accounts and manipulating the system, were acquitted again in the second trial.

On the afternoon of the 7th, the Seoul High Court Criminal Division 1-3 (Presiding Judges Shim Dam, Lee Seungryeon, and Eom Sangpil) acquitted Chairman Song Chi-hyung of Dunamu, CFO Nam, Quant Team Leader Kim, and other executives and employees, who were indicted on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, just as in the first trial.

The appellate court stated, "(The account transaction records submitted by the prosecution) constitute illegally obtained evidence, so their evidentiary value cannot be recognized," and added, "Even if all other evidence submitted by the prosecution is recognized as valid, this evidence alone cannot prove the charges beyond a reasonable doubt."

Earlier, Chairman Song and others were accused of creating an ID named '8' on Upbit between September and November 2017, then fabricating deposits of assets worth 122.1 billion KRW into this ID and conducting fake transactions to induce actual members to trade, thereby gaining profits. They were brought to trial in December 2018.

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

The first trial resulted in acquittal. At that time, the court stated, "Based solely on the evidence presented by the prosecution, it cannot be recognized that Upbit deposited assets into the ID '8,'" and "It is difficult to consider that transactions were conducted with virtual currencies that Upbit did not possess." Regarding Upbit's direct participation in cryptocurrency trading, the court explained, "Under current laws, it cannot be considered that cryptocurrency exchanges are prohibited from participating in trades themselves, and from the perspective of the principle of good faith, it is difficult to see that the exchange has a legal obligation to notify that it participates in trades."

This content was produced with the assistance of AI translation services.