There are serious accusations against the famous South Korean Bitcoin and altcoin exchange Bithumb. In particular, the Kang brothers, who are thought to be behind the exchange, are accused of embezzlement, breach of trust and market manipulation. Here are the details….
Arrest warrant for director of bitcoin and altcoin exchange
Multiple executives at South Korean cryptocurrency exchange Bithumb have been beset with accusations of embezzlement and market manipulation, according to South Korean financial institution InfoMax. Under these charges, an arrest warrant was issued for Kang Jong-hyeon, who is thought to be the “true owner of Bithumb”. On Wednesday, members of the legal community confirmed that the two directors of Kang and Bithumb were sentenced by the Seoul South District Procuratorate on charges of embezzlement and breach of trust. They were also charged with fraudulent illegal transactions under the Capital Markets Law.
Kang’s younger sister, Kang Ji-yeon, runs Bithumb subsidiaries such as Inbiogen and Bucket Studio, a shoe company and distribution company, respectively. It is believed that Ji-yeon artificially inflated the share price of both companies by issuing convertible bonds, she. “Prosecutors seized the circumstances under which Mr. Kang stole company money or manipulated stock prices, and in October last year they seized and searched Bithumb affiliates such as Vident, Inbiogen and Bucket Studio,” InfoMax said.
Bithumb has been under investigation for some time now
The shares of each company were linked: Vidente is Bithumb’s largest single shareholder, Vidente’s largest shareholder, and Bucket Studio is Inbiogen’s largest shareholder. Bithumb has been under investigation by the prosecution for months over an alleged $70 million fraud perpetrated by former president Lee Jung-hoon. Jung-hoon, who was accused in October, disposed of it earlier this month.
Two weeks ago, the prosecution launched a new investigation into Bithumb into whether Kang violated local tax laws – including his brother’s activities. Park Mo, Vidente’s vice president, was found dead in Seoul late last month, and there are reports suggesting the death may have been suicide. Park is said to have oversaw the Kang brothers’ accounting during his time as Vidente’s Vice President. At the time, suspicions were swirling that the Kang brothers accused Park of embezzlement and market manipulation.
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