Bithumb offices searched because legal problems are increasing (report)

Bithumb offices searched because legal problems are increasing (report)

Further problems for the South Korean crypto exchange Bithumb brew themselves because their offices were reportedly searched on Thursday.

The authorities led an investigation to be listed on the platform for possible price manipulation, according to a report by Yonhap. The token in question was not uncovered.

The prosecutors said they examine transactions associated with a specific person or organization that are supposed to prize the Coin’s prize to make a profit. In a statement, the public prosecutor's office of the Seoul district:

"This is a search and confiscation to secure the transaction details of a specific person Coinund It has nothing to do with Bithumb."

In addition to Bithumb, the prosecutors plan to check the transaction details for other crypto exchanges where the token is listed.

arrest of the founder

The latest development comes just a few days after the South Korean authorities have applied for an arrest warrant against Kang Jong-Hyun, the chairman and owner of Bithumb, due to allegations of embezzlement. Two other managers, including his younger sister Kang Ji-Yeon, the CEO of two listed Bithumb subsidiaries-inbiogen and Bucket Studio-were also accused of embezzlement, breach of trust and illegal transactions.

The public prosecutor's office of the southern district of Seoul claimed that the managers had cheated on company money and conspired to manipulate share prices.

BITHUMB is one of five remaining crypto exchanges in the country after an industry-wide procedure in 2021, which led to the closure of almost 70 local trading places that did not meet the regulatory requirements. Several of his managers have been confronted with severe charges in recent years.

In December, the largest shareholder of the crypto exchange, Park Mo, was found dead in front of his house after he was charged by the siblings Kang as a suspect in the investigation by the public prosecutor for suspected embezzlement and stock manipulation. Mo was arrested because he allegedly destroyed evidence before a search from the public prosecutor. Several local media reports indicate that the executive has committed suicide.

indictment for tax fraud

In another separate investigation, the South Korean National Tax Service (NTS) initiated a "special tax examination" against Bithumb Korea and Bithumb Holdings and its subsidiaries for possible tax evasion through national and international transactions.

BITHUMB was subjected to a tax investigation for the second time after 2018 when it was made for tax payments with an invoice of several million dollars, although the investigation showed that the company was not guilty of tax evasion.

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