According to local news Infomax, South Korean prosecutors requested an arrest warrant on January 25 for Kang Jong-Hyun, chairman and owner of digital currency exchange Bithumb. Which is expected in the allegations of embezzlement related to activities in the exchange.
On the same day, the Financial Investigation Division 2 of the South Seoul District Prosecutor’s Office indicted Kang and two Bithumb executives on charges of embezzlement and breach of trust under the Law on Specific Economic Crimes Punishment. The executives were also charged with fraudulent illegal transactions under the Capital Markets Act.
Cointelegraph previously reported on January 10 that Bithumb was placed under “special tax investigation” by the National Tax Service of the country. Along with the incident, Kang is being investigated for his role in allegedly manipulating the share prices of Bithumb affiliates Inbiogen and Bucket Studio through the issuance of convertible bonds. Vidente is currently the largest shareholder in Bithumb, with a 34.2% stake.
On December 30, 2022, Bithumb’s largest shareholder, Park Mo, was found dead in front of his own home after being investigated for his alleged role in embezzling funds from Bithumb-related companies. It is suspected that Mo has also committed suicide due to the nature of the criminal charges against him.
After the development, Lee Jung-Hoon, the former chairman of Bithumb, was found not guilty of $70 million in fraud charges related to his activities at Bithumb. The exchange is one of the largest in South Korea, with a 24-hour trading volume of $467 million.