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Former chairman of crypto exchange Bithumb, Kang Jong-Hyun, was arrested on Thursday on suspicions of fraud and embezzlement, per CoinDesk Korea
Investigators allege that Kang along and at least two other executives were involved in stock price manipulation and theft during their time at the company. The South Korean prosecutors also questioned Kang Ji-Yeon's brother. Yeji One would be at the head of two subsidiaries of Bithumb.
The arrests put an end to a disconcerting phase in Bithumbs' history after the death of its largest shareholder, Park Mo. Prosecutors revealed that I was a suspect in the same stock market manipulation scandal of which Kang would have been a member. Soon after the news broke, the Korean media reported that my "jasal" clerk just outside his house.
Turbulent Times At Bithumb
Thursday’s arrest comes a week after prosecutors raided several local Bithumb offices. The South Korean authorities declared that the event was related to an investigation into the manipulation of the price of coins, and not directly related to the crypto exchange itself.
Prosecutors seized the piece-related transaction documents during the raid, but they withheld the asset's name for reasons unknown at the time of the press. The authorities added that similar raids may be carried out on other crypto exchanges as investigations progress.
Former President Lee Jung-hoon was recently tried for $100 million in fraud as South Korean authorities have stepped up enforcement efforts after the collapse of Terra. Lee was nonetheless acquitted of all charges at the beginning of January 2023.
Collapse of tax evasion.
The National Tax Service has a file open for crypto exchange. Previous reports have indicated that the regulator believes that bithumb has avoided paying taxes through suspicious transactions in Canada and abroad. Several divisions in the crypto entity fall under the investigation's jurisdiction, according to reports.
Back in 2018, the company was also accused of tax evasion but authorities dropped the charges due to insufficient findings.
