Pica Coin Founders Out of Jail, Facing Fraud Charges

Two founders of a South Korean altcoin project, Pica Coin, have been released on bail after spending six months in pre-trial detention. They are accused of manipulating the token price and defrauding investors of millions of dollars.

What is Pica Coin?

Pica Coin is a cryptocurrency project that claims to be based on the concept of “jointly owning expensive and famous works of art”. According to its website, Pica Coin aims to create a “global art platform” that allows users to buy, sell, and trade digital artworks using blockchain technology.

The project was launched in 2021 and listed on Upbit, the largest crypto exchange in South Korea by trading volume. However, Upbit delisted the coin in the same year, citing “low trading volume and poor liquidity”. The Pica Coin team appealed the decision, but failed to reverse it.

How did the founders manipulate the token price?

According to the prosecution, the two founders of Pica Coin, identified only by their surnames Song and Seong, collaborated with two famous stock traders to artificially inflate the token price and lure investors. They allegedly raised around $25.5 million from investors by “falsely promoting the performance” of the altcoin.

The prosecution claims that the quartet used various methods to manipulate the token price, such as creating fake accounts, spreading false information, and buying and selling large amounts of coins. When the price reached a certain level, they sold their coins and made huge profits.

The prosecution also doubts the legitimacy of the Pica Coin project, saying that it has no clear business model or evidence of owning any artworks.

What is the status of the trial?

The Seoul Southern District Court released Song and Seong on bail on February 7, pending their fraud trial. The court rejected the prosecution’s request to keep them in custody, saying that it could harm their efforts to prepare for the trial.

The court also said that there is no risk of flight or tampering with evidence, as the defendants have already surrendered their passports and bank accounts. The court also ordered them to report to the police regularly and refrain from contacting any witnesses or co-defendants.

The trial date has not been set yet, but the defendants face up to 10 years in prison if convicted.

What is the impact of the case on the crypto industry?

The Pica Coin case is one of the many crypto-related cases that are being handled by the South Korean courts. The country has seen a surge in crypto crimes, such as hacking, phishing, fraud, and money laundering, as the popularity of cryptocurrencies has increased.

The government has been trying to regulate the crypto industry, by introducing new laws and guidelines, such as requiring crypto exchanges to register with the financial authorities and verify their customers’ identities. However, some critics say that the regulations are too strict and stifle innovation.

The Pica Coin case also raises questions about the credibility and transparency of the altcoin projects, especially those that claim to have novel or innovative features. Investors are advised to do their own research and due diligence before investing in any crypto project.