- Kang Jong-hyun, the suspected proprietor of South Korea’s largest crypto alternate, Bithumb, was arrested on prices of alleged embezzlement.
- Kang was accused of stealing 60 billion received from his firm and conspiring with a enterprise associate to govern inventory costs.
Kang Jong-hyun, the suspected proprietor of South Korea’s largest crypto alternate, Bithumb, was arrested on prices of alleged embezzlement on 2 February, in response to local media reports.
The Seoul Southern District Courtroom issued an arrest warrant for the businessman final week, charging him with dereliction of obligation, market manipulation, and fraudulent transactions.
Jo Mo, the consultant of the affiliated firm who was counted as an aide, was additionally arrested.
Kang was accused of stealing 60 billion received from his firm and conspiring with a enterprise associate to govern inventory costs. He’s the brother of Kang Ji-yeon, the top of Bithumb affiliate Inbiogen. The corporate owns most of Vidente, which is the biggest shareholder in Bithumb, with a 34.2% stake.
Prosecutors claimed that the brothers conspired to steal company funds and manipulate inventory costs at Inbiogen and video manufacturing agency Bucket Studio by issuing convertible bonds.
Kang Ji-yeon, CEO of Bucket Studio, apologized to shareholders. Nonetheless, he acknowledged that the claims in opposition to his brother had been “unconfirmed.” Lastly, he promised to cooperate with the authorities.
Investigation into Bithumb ongoing
Earlier, the South Korean Nationwide Tax Service company launched an investigation into the nation’s largest cryptocurrency alternate. As a part of the continuing tax investigation, the investigation crew reportedly raided Bithumb’s Seoul headquarters.
In December 2022, Park Mo, Bithumb’s largest shareholder, was found dead in entrance of his own residence. He was additionally beneath investigation for alleged embezzlement and market manipulation. Park Mo was thought to have dedicated suicide due to the costs levied in opposition to him.
As per CoinGecko, Bithumb has a day by day buying and selling quantity of round $350 million. The alternate helps 191 cash and 287 buying and selling pairs, the most well-liked of which is BTC/KRW.