Police seize South Korean crypto exchange Coinbit for allegedly inflating trading volumes

The Seoul Metropolitan Police Agency has reportedly seized local crypto exchange Coinbit for allegedly inflating trading volumes.

South Korea's oldest newspaper, the Seoul Shinmun, reported the news on Wednesday, saying that Coinbit's offices have been raided for the alleged fraud. The exchange is accused of using multiple "ghost accounts" to inflate trading volumes.

About 99% of Coinbit's trading volume is said to have been manipulated in recent months, which resulted in "unfair profits" of at least 100 billion won (about $84 million) for the exchange and its team. Coinbit's accounting practices are also poor, per the report.

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