Two arrests were made in the Bithumb operation launched by prosecutors in South Korea last week. Kang Jong-hyun, the owner of the exchange, and a person named Cho, whose full name has not been released, were arrested for embezzlement and stock manipulation. According to JTBC, the country’s media, Cho confessed to his crime after taking the statement of the prosecutors.
In the operation, which began in the last week of January, prosecutors claimed that Kang Jong-hyun and his brothers and sisters knowingly manipulated share prices. In addition to stocks, it was stated that Bithumb also manipulated and scammed two cryptocurrencies, GoMoney2 and Pixel Coin.
Prosecutors and police also raided Bithumb and its subsidiaries in October. It is known that Kang Jong-hyun’s brothers are also the owners of these subsidiaries, and these companies are also the largest shareholders of Bithumb.
Kang Jong-hyun was also banned from leaving the country last month.
Park Mo, a former director of Bithumb, was also charged with embezzlement by prosecutors and later committed suicide, taking his own life.
Former chairman of the board, Lee Jung-Hoon, who was tried for alleged fraud of $ 70 million, was found not guilty by the court in January.
