[ad_1]
The alleged real owner of South Korea’s largest crypto exchange, Bithumb, has been arrested on charges of embezzlement on February 2 local time.
According to local media reports, Kang Jong-hyun was arrested on embezzlement charges. The Seoul Southern District Court issued an arrest warrant for the businessman on January 25 on various charges, including dereliction of duty, market manipulation and fraudulent transactions.
The 41-year-old is the older brother of Kang Ji-yeon, head of Bithumb affiliate Inbiogen. The company holds the largest stake in Vidente Vidente, which is Bithumb’s largest shareholder with a 34.2% stake.
According to prosecutors, the brothers colluded to embezzle company funds and manipulate the share price of Inbiogen and video production company Bucket Studio through the issuance of convertible bonds.
In a notice on the Bucket Studio website, CEO Kang Ji-yeon apologized to shareholders and said the claims against his brother were “unconfirmed”, adding that he would cooperate with the authorities in the investigation.
On January 10, Cointelegraph reported that South Korea’s National Tax Service agency launched an investigation into South Korea’s largest crypto exchange. Investigators reportedly raided Bithumb’s Seoul headquarters as part of an ongoing tax probe.
This story deepened when Bithumb’s largest shareholder, Park Mo, was found dead in front of his own home in late December.
He is also subject to investigation amid accusations of embezzlement and market manipulation. It is suspected that Park Mo committed suicide because of the charges brought against him.
Related: Former Bithumb chairman Lee Jung-Hoon was acquitted in the first instance
Bithumb has a 24-hour trading volume of $370 million, according to CoinGecko. The exchange, founded in 2014, offers 191 coins and 287 trading pairs, BTC/KRW being the most popular.
Source: Cointelegraph.com
[ad_2]
Source link