South Korean prosecutors request arrest warrant for Bithumb proprietor: Report

In response to native information outlet Infomax, South Korean prosecutors requested an arrest warrant on Jan. 25 for Kang Jong-Hyun, chairman and proprietor of cryptocurrency change Bithumb. Kang is needed on allegations of embezzlement associated to his actions on the change.

The identical day, the Monetary Investigation 2nd Division of the Seoul Southern District Prosecutor’s Workplace sentenced Kang and two Bithumb executives on costs of embezzlement and breach of belief below the Act on the Aggravated Punishment of Particular Financial Crimes. The executives had been additionally charged with conducting fraudulent unlawful transactions below the Capital Markets Act. 

Cointelegraph beforehand reported on Jan. 10 that Bithumb was positioned below a “particular tax investigation” by the nation’s Nationwide Tax Service. Simultaneous to the incident, Kang is below investigation over his position in allegedly manipulating the inventory costs of Bithumb associates Inbiogen and Bucket Studio by the issuance of convertible bonds. Vidente is at the moment the biggest shareholder of Bithumb, with a 34.2% stake. 

On Dec. 30, 2022, Bithumb’s largest shareholder, Park Mo, was discovered lifeless in entrance of his own residence following investigations into his alleged position in embezzling funds from Bithumb-related firms. It’s suspected that Mo could have taken his personal life as a result of nature of the legal allegations introduced towards him.

Subsequent to the event, Lee Jung-Hoon, former chairman of Bithumb, was discovered not responsible of a $70 million fraud cost relating to his actions at Bithumb. The change is one in all South Korea’s largest, with a 24-hour commerce quantity of $467 million.