Chairman of the Dunamu, Operator of Upbit exchange, Song Chi-hyung rebutted the prosecution's allegation in the trial on Nov 29. Dunamu is a well known blockchain and investement company, an operator of Upbit.
The 12th Criminal Agreement of Seoul Southern District Law (Deputy Judge Oh Sang-yong) held the 9th trial of the Upbit case. The accused suspect this time was a Chairman of Upbit Song Chi-hyung, Treasury Director of Upbit, Nam Doo-mo, and Kim Mo-mo. They were prosecuted for fraudulent prerecord records and fraud under certain economic crime laws.
The trial was a detandant questioning. During the questioning, Prosecution mentioned that Upbit's total earning assets from the wash trading almost reach to 254 Trillion KRW(214Billion USD), but Chairman Song Chi-hyeong argued with prosecution that Upbit actually made 254 Trillion KRW last year including all orders that has been canceled and ordered at the time, but it should not be sum up that way.
Chairman Song Chi-hyeong admitted that he had made a mistake about the Wash Trading (Bot Trading), that he didn't tell the team when to stop.
"When we opened Upbit in October 2017, we were concerned about the lack of trading volume, and we also need to concern about the technical issues also."
Chairman also mentioned that even if Upbit would not have provided liquidity through the corporate account ID 8 (wash trading), it would have succeeded.
He also added, “The reason why those users were attracted to Upbit is because Upbit had less volume than other exchanges at the time of opening, also was available to log in via KakaoTalk account."