Bithumb’s Owner Arrested on Charges of Price Manipulation (Report)

South Korean law enforcement agents have reportedly arrested Kang Jong-hyun – owner of prominent cryptocurrency exchange Bithumb.

Prosecutors claimed he manipulated stock prices and embezzled nearly $50 million.

Facing Possible Jail Time

According to local scope, Kang Jong-hyun – presumed to be the real owner of Bithumb – was detained today (February 2) in South Korea. Authority published an arrest warrant against him a week ago on charges that he violated state finance laws, manipulated stock prices, and stole 60 billion won (nearly $50 million).

The police officers also detained Jo Mo – someone who is part of Kang’s inner circle and a representative of a cryptocurrency platform.

It should be noted that other Bithumb executives allegedly destroyed key evidence, including hard drives and CCTV footage, which could shed more light on the case. He recently received a prison sentence.

The prosecution further stated that the exchange manipulated the valuation of the coins listed at the trading venue. This prompts a thorough investigation and deprivation the company’s headquarters in the capital city of Seoul.

Kang has previously denied all charges against him. His name, however, is shrouded in mystery. This 41-year-old man has registered most of his businesses, real estate, and many vehicles in the name of his sister – Kang Ji-yeon, which has also sparked an investigation against him.

The local media outlet recently indicated that the mystery man is dating Park Min-young (one of the most famous Korean actresses).

Former Bithumb Chairman Found Not Guilty

Seoul Central District Court arranged last month Lee Jung-hoon – the former Chairman of the stock exchange – did not commit fraud and thus avoided eight years in prison.

He is accused of violating the Act on Aggravated Punishments for Special Economic Crimes and embezzling more than $87 million from BK Group Chairman – Kim Byung-gun – during negotiations regarding Bithumb’s takeover in 2018.

“The proceeds from the sale and purchase of shares cannot be accepted due to errors caused by fraudulent acts, such as the facts of the prosecution, only based on the evidence presented by the prosecutor,” said the judge.

Park Mo – Vice President of Vidente (Bithumb’s largest shareholder) – is also under investigation for allegations of embezzlement and stock price manipulation. However, he found dead at the end of last year in front of his house in Seoul. The initial investigation found no signs of a possible homicide, meaning Mo may have taken his own life.