The South Korean Police Force took over the head office of Coinbit located in Gangnam and other locations.
The law enforcement agency reported that the firm's founder and other managers forged most of their investment volume in which the company had falsely made about $84 million in gains.
A "wash investment" is a typical market exploit in which a trader sells and purchases monetary assets to produce deceptive and pseudo business activities. This is considered illegitimate.
Concerning Coinbit, the force says the trade was divided into two working accounts holding all users' finances. The first account was used fraudulently in transactions relating to XRP, BTC, and ETH. While the second account solely invested suspicious altcoins and initial trade givings. The company blocked deals with external trades so that the founder and the administration could take charge of coins provision.
They are curently being questioned for misconduct and misappropriation.
Source: News.bitcoin
