Owner of Bithumb is Detained in South Korea on Suspicion of Embezzlement

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Last Updated on February 2, 2023 by Bitfinsider

On 2nd February local time, the claimed true owner of Bithumb, the largest cryptocurrency exchange in South Korea, was detained on suspicion of embezzlement.

Kang Jong-hyun was detained, according to allegations in the local media, on suspicion of embezzlement. On 25th January, the businessman was given a warrant for arrest by the Seoul Southern District Court, which listed a number of offenses against him, including neglect of duty, market manipulation, and fraudulent transactions.

The 41-year-old is Kang Ji-senior yeon’s brother and the CEO of Bithumb affiliate Inbiogen. The company owns the largest holding in Vidente Vidente, which, with a 34.2% stake, is the largest stakeholder in Bithumb.

Prosecutors claim that the brothers conspired to steal company funds and manipulate the stock prices of Inbiogen and the video production company Bucket Studio by issuing convertible bonds.

The CEO of Bucket Studio, Kang Ji-yeon, issued an apology to the company’s shareholders and claimed that the allegations against his brother were “unconfirmed,” adding that he would assist the authorities in their inquiry.

The largest cryptocurrency exchange in South Korea is the subject of a probe. According to reports, as part of the continuing tax investigation, investigators searched Bithumb’s headquarters in Seoul.

The story gets even more complicated because Park Mo, the largest shareholder in Bithumb, was discovered dead in front of his own house in late December.

Due to claims of theft and market manipulation, he was also the focus of a probe. It was believed that Park Mo committed suicide as a result of the accusations made against him.

According to CoinGecko, Bithumb has a $370 million trade volume every day. The 2014-founded exchange offers 287 trading pairings and 191 coins, with BTC/KRW being the most widely used pair.

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