South Korea-based cryptocurrency exchange Coinbit has reportedly been seized by police raid amid accusations of wash trading.
According to local news outlet the Seoul Shinmun, the police raided the Coinbit office over the accusations of fraudulently using multiple"ghost accounts" to increase trading volumes.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
Almost 99% of Coinbit's trading volume in recent months has been manipulative, as a result of which the exchange received an "unfair profit" of at least $84 million, the Seoul Shinmun states.
As part of the investigation, Coinbit ceased all operations.
This is not the first time the exchange faces accusations due to suspicious activity.
In 2018, the exchange was caught in manipulation, as a result of which, the platform entered the top 10 in popularity. It is noteworthy that despite its fake popularity, the exchange's social media accounts had almost no activity at all.
In July, Cole Diamond, the CEO of a Canadian popular cryptocurrency exchange Coinsquare, and president Virgile Rostand announced resignation from their positions after accusations of wash trading.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.