Bithumb, a South Korean cryptocurrency exchange, has taken a double hit from the country’s prosecutors. The exchange was raided as part of an investigation into alleged price manipulation, and authorities are also seeking to detain the exchange’s alleged biggest shareholder on theft-related allegations.
On January 26, the Financial Investigation Division 1 of the Seoul Southern District Prosecutor’s Office conducted a search and seizure at Bithumb’s virtual currency exchange in Gangnam-gu to obtain information about coin transactions.
According to reports, the prosecution is looking into possible illegal transactions involving the listing and trading of crypto assets.
They have a track record of investigating cases where an individual or group deliberately manipulates coin prices for illegal profit.
The prosecution has stated that the search and seizure is unrelated to Bithumb and is intended to secure the transaction records of a particular coin. They plan to review the transaction history of other exchanges where the disputed coin is listed.
The raid follows an investigation by South Korean tax officials into Bithumb for possible tax evasion through local and foreign transactions on the exchange and its affiliates.
The owner of Bithumb, Kang Jong-Hyeon, is the focus of an arrest warrant issued by South Korean prosecutors earlier this week. He has been charged with fraud due to his alleged involvement in manipulating the stock prices of businesses affiliated with Bithumb.
His sister, Kang Ji-yeon, who is the CEO of two Bithumb affiliate companies, Inbiogen and Bucket Studio, is also being investigated for alleged stock price manipulation and embezzlement.
Following a crackdown in 2021 that resulted in the closure of over 70 local exchanges for failing to comply with regulatory regulations, Bithumb is one of only five Korean cryptocurrency exchanges still in operation.
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