According to South Korean media outlet Infomax, South Korean prosecutors have requested an arrest warrant for Kang Jong-hyun, the chairman and owner of major cryptocurrency exchange Bithumb, on the 25th. Kang was wanted on charges of embezzlement related to his activities on the exchange.
On the same day, the Seoul Southern District Public Prosecutors Office’s Financial Investigation Division 2 sent Mr. Kang and two executives of Bithumm to prosecutors on suspicion of embezzlement and breach of trust under the Act on Aggravated Punishment of Specific Economic Crimes. The executive was also charged with engaging in fraudulent and illegal trading under the Capital Markets Act.
Cointelegraph reported on January 10 that Bithumb was under a “special tax investigation” by the country’s National Tax Agency. At the same time, Kang is under investigation for allegedly manipulating stock prices by issuing convertible bonds for Bithumb affiliates Invigen and Bucket Studio.
Meanwhile, on December 30, 2022, Bithumb’s largest shareholder, Park Mo, was found dead in front of his home under investigation on suspicion of embezzling funds from Bithumb-related companies. Mr Mo is believed to have taken his own life as a result of the criminal charges against him.
Later, former Bithumb chairman Lee Jeong-hong was acquitted of a $70 million fraud charge related to Bithumb’s activities.
