Kang Jong-Hyeon, the “secret chairman” of Bithumb, one of South Korea’s largest cryptocurrency exchanges, and an unnamed person were arrested for alleged embezzlement.
According to the information shared by the South Korean local press, the former head of Bithumb Kang Jong Hyun and a person named Cho, whose real identity has not been revealed, was arrested for illegal activities. Cho confessed to his guilt in his first statement to prosecutors.
Officials, Kang and Cho’s convertible bonds using to Bithumb suspected of artificially inflating the stock values of owned companies and embezzling user assets that did not belong to him. Attached to the arrested Jong-Hyun’s Bithumb Inbiogenhead of Kang Ji-yeonthat he has a brother and your brothers 34.2%It is stated that Bithumb is the largest shareholder with a share of .
According to prosecutors, the two Korean brothers were accused of embezzling company funds. Inbiogen and video production company The front company Bucket Studio used as. Ji-yeon, CEO of Bucket Studio and brother of the arrested Bithumb founder, posted a statement on the production company’s official website. apologized to shareholders and about his brother allegations not confirmed stressed. With these actions of two brothers Whether the person nicknamed Cho has a connection was not specified.
About a week ago, arrest warrants were issued for Kang Jong-Hyeon and two other executives for several different crimes, including embezzlement. Shortly after this decision, the two tokens traded on the local exchange to price manipulation conducted for a investigation As part of this, Bithumb’s office was raided.