South Korean prosecutors raided Bithumb’s headquarters amid allegations of misused company funds.
The investigation adds to a series of legal troubles for the crypto exchange dating back to 2018.
South Korean authorities have intensified their scrutiny of the cryptocurrency exchange Bithumb, launching another investigation into its financial dealings.
According to sources, the Seoul Southern District Prosecutors’ Office conducted a raid on Bithumb’s Yeoksam-dong headquarters on March 20, seizing documents and financial records. The move follows allegations that the company’s funds were used to help its former CEO, Kim Dae-sik, secure an apartment.
Bithumb paid 3 billion won as a down payment to purchase an apartment in Seongsu-dong, although Kim might have spent some of it on personal matters. The Financial Supervisory Service initially investigated the case and then handed it over to prosecutors to act on it
The inquiry aims to determine if Bithumb violated finance rules by making personal expenditures using company resources.
Adding to the controversy is that it has been reported that the deposit on the apartment that was rented in Bithumb Korea’s name increased significantly in 2023. Some have speculated that it was due to personal payments by Kim.
Reacting to this, a Bithumb official admitted that some of the claims were valid but clarified that Kim had settled the full amount after securing a loan. The prosecution remains determined to find out if financial misconduct happened.
Reports Claim Crypto Projects Paid Millions for Bithumb Listings
This is not the first time that Bithumb has been in legal trouble. The platform has been under investigation several times since 2018, with accusations varying from fraud and illegal transfer of funds to market manipulation.
Even after a series of high-profile raids have taken place, officials have still not completed final conclusions in many of those cases. The new probe adds another dimension of complexity to Bithumb’s regulatory woes.
In addition, listing practices at Bithumb have also been questioned once again. It has been reported that some cryptocurrency projects had paid hefty intermediary fees to list on the platform.
Wu Blockchain cited unidentified sources as saying that two projects paid $10 million and $2 million to list on both Upbit and Bithumb. If true, such claims would be another black eye to South Korea’s crypto space.
Amidst all such controversies, regulatory bodies come under pressure to tighten regulations on those who operate within their jurisdiction. South Korean authorities have been pushing for more control to curb financial malpractices in the space of digital assets.
Such moves may be accelerated by Bithumb’s recent legal troubles, leading to stricter rules and compliance requirements for cryptocurrency businesses.
Bithumb’s IPO Plans Under Threat
Despite those challenges, Bithumb remains committed to going public. The exchange has been making plans toSouth Korean prosecutors raided Bithumb’s headquarters amid allegations of misused company funds.
The investigation adds to a series of legal troubles for the crypto exchange dating back to 2018.
South Korean authorities have intensified their scrutiny of the cryptocurrency exchange Bithumb, launching another investigation into its financial dealings.
According to sources, the Seoul Southern District Prosecutors’ Office conducted a raid on Bithumb’s Yeoksam-dong headquarters on March 20, seizing documents and financial records. The move follows allegations that the company’s funds were used to help its former CEO, Kim Dae-sik, secure an apartment.
Bithumb paid 3 billion won as a down payment to purchase an apartment in Seongsu-dong, although Kim might have spent some of it on personal matters. The Financial Supervisory Service initially investigated the case and then handed it over to prosecutors to act on it
The inquiry aims to determine if Bithumb violated finance rules by making personal expenditures using company resources.
Adding to the controversy is that it has been reported that the deposit on the apartment that was rented in Bithumb Korea’s name increased significantly in 2023. Some have speculated that it was due to personal payments by Kim.
Reacting to this, a Bithumb official admitted that some of the claims were valid but clarified that Kim had settled the full amount after securing a loan. The prosecution remains determined to find out if financial misconduct happened.
Reports Claim Crypto Projects Paid Millions for Bithumb Listings
This is not the first time that Bithumb has been in legal trouble. The platform has been under investigation several times since 2018, with accusations varying from fraud and illegal transfer of funds to market manipulation.
Even after a series of high-profile raids have taken place, officials have still not completed final conclusions in many of those cases. The new probe adds another dimension of complexity to Bithumb’s regulatory woes.
In addition, listing practices at Bithumb have also been questioned once again. It has been reported that some cryptocurrency projects had paid hefty intermediary fees to list on the platform.
Wu Blockchain cited unidentified sources as saying that two projects paid $10 million and $2 million to list on both Upbit and Bithumb. If true, such claims would be another black eye to South Korea’s crypto space.
Amidst all such controversies, regulatory bodies come under pressure to tighten regulations on those who operate within their jurisdiction. South Korean authorities have been pushing for more control to curb financial malpractices in the space of digital assets.
Such moves may be accelerated by Bithumb’s recent legal troubles, leading to stricter rules and compliance requirements for cryptocurrency businesses.
Bithumb’s IPO Plans Under Threat
Despite those challenges, Bithumb remains committed to going public. The exchange has been making plans to
