The alleged owner of Bithumb, arrested in South Korea

The alleged owner of the major crypto exchange Bithumb has just been arrested in South Korea. According to local media, allegations accuse him of embezzlement. South Korean authorities have also launched an investigation into Bithumb.

Kang Jong-hyun arrested for embezzlement

The owner of Bithumb has just been arrested on February 2 in South Korea for allegations of embezzlement. This is Kang Jong-hyun, a 41-year-old businessman. The Seoul Southern District Court has issued an arrest warrant for him since Jan. 25. Indeed, he has been the target of multiple charges such as market manipulation, dereliction of duty and fraudulent transactions.

Kang Jong-hyun is the older brother of Kang Ji-yeon, head of Inbiogen, a subsidiary of Bithumb. This company holds the largest share of Vidente Vidente. She is then the largest shareholder of thecrypto exchange with a 34.2% stake. Prosecutors say the brothers agreed to embezzle company funds and manipulate the stock price of Inbiogen and Bucket Studio, a video production company, through the issuance of convertible bonds.

The alleged owner of Bithumb, arrested in South Korea
The alleged owner of Bithumb, arrested in South Korea

Bithumb is under investigation

Bucket Studio’s website posted a notice in which CEO Kang Ji-yeon apologizes to shareholders. He said the charges against his brother were unconfirmed. Subsequently, he said he wanted to cooperate with the authorities in the investigation. Separately, South Korea’s National Tax Service Agency launched an investigation into Bithumb on January 10. Investigators have reportedly raided the headquarters of South Korea’s largest crypto exchange as part of the ongoing tax investigation.

This case is more dramatic especially since Park Mo, the main shareholder of Bithumb was found dead in front of his own house at the end of December. According to suspicion, he ended his life due to an investigation against the backdrop of allegations of embezzlement, brought against him.

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