Bithumb crypto exchange owner arrested on suspicion of embezzlement of $48 million

Bithumb crypto exchange owner arrested on suspicion of embezzlement of $48 million

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Author: Robert Strickland
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Bithumb crypto exchange owner arrested on suspicion of embezzlement of $48 million
Kang Jong-hyun is accused of manipulating share prices of several affiliated companies and embezzling corporate funds

The de facto owner of one of South Korea's largest crypto exchanges Bithumb, Kang Jong Hyun, has been arrested in South Korea, Yonhap news agency reported. According to JBTC, the arrestee is accused of manipulating share prices of several affiliated companies and embezzlement of 60 billion Korean won ($48.7 million).

Bithumb - According to CoinGecko, daily trading volume on the platform was $320 million in the past 24 hours. The platform offers 191 coins and 290 trading pairs.

The Seoul South District Prosecutor's Office issued an arrest warrant for Kang and two other people connected to the case on Jan. 25. On the morning of Feb. 2, the owner of Bithumb was detained, according to the report.

Law enforcement authorities suspect - Bithumb, Bucket Studio and Inviogen.
Bucket Studio is the largest shareholder of Inviogen, which in turn is the largest shareholder of Vident, which has the largest stake in Bithumb (34.2%).

The head of Inviogen is the younger sister of detainee Kang Ji Yeon. Prosecutors believe they stole corporate funds and manipulated stock prices of the named companies together. Kang's sister is under further investigation. Her brother denies the charges against him.

Simultaneously with the case, prosecutors are investigating price manipulation of one of the assets listed on Bithumb. Last week, the exchange's office was searched "to ensure the security of transaction information in a particular coin."

 

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