Coinbit Is Suspected Of Illegal Activities

Fake trading volumes are widespread in cryptocurrency markets around the world. The researchers argue that over 90% of all transactions on exchanges can be bots trading with each other to create the illusion of an active market for so-called "wash trading".

According to Seoul News, Seoul police raided the offices of Coinbit, one of the largest crypto exchanges in South Korea. The company is suspected of using illegal methods to increase trading volume and earn millions of dollars. The owner of the exchange, Choi Mo, and other team members allegedly bought and sold different tokens between different accounts on the exchange, which affected 252,000 monthly active Coinbit users as authorities said.

Coinbit faked over 99% of the trading volume. Coinbit's fraudulent revenue of over 100 bln won ($85 mln) and the wash trading method resulted in a lawsuit. At the moment, the investigation is going on.

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