Arrest Warrant Issued for Owner of Popular Cryptocurrency Exchange!

Cryptocurrency stock market Bithumb’s An arrest warrant was issued by the South Korean Prosecutor’s Office for the owner, Kang Jong-hyeon.

Accusations against Kang Jong-hyeon include embezzlement and breach of trust in Bithumb member companies.

A deputy chief executive of Vidente, Bithumb’s largest shareholder, committed suicide during the investigation.

Arrest Warrant Issued in South Korea About Owner of Cryptocurrency Exchange Bithumb

The Seoul Southern District Procuratorate’s Financial Investigation Division convicted two executives of Kang and Bithumb subsidiaries for embezzlement and breach of trust, and committing fraudulent illegal transactions under the Capital Markets Law, according to the news in South Korean legal circles. An arrest warrant was requested for them.

Kang is suspected of playing a key role in manipulating the stock prices of Bithumb subsidiaries Inbiogen and Bucket Studio through the issuance of convertible bonds.

Prosecutors investigated cases in which Kang stole the company’s money or manipulated stock prices, and in October last year raided Bithumb subsidiaries such as Vident, Inbiogen and Bucket Studio.

Vidente is the largest single shareholder with a 34.2% stake in Bithumb Holdings.

Bithumb has also seen a significant drop in transaction volume in recent months following the legal turmoil. Once South Korea’s second largest bitcoin Crypto exchanges such as Coinone, Korbit and Upbit gradually replaced Bithumb.

Recently, investigators also expressed concern about irregularities found in taxes filed by Bithumb Korea, Bithumb Holdings and its subsidiaries.

*Not investment advice.