South Korea issues arrest warrant for Bithumb owner

abdelaziz Fathi

A Korean news outlet reported that the authorities are seeking the arrest of Kang Jong-Hyun, the anonymous chairman and owner of the country’s largest cryptocurrency exchange, Bithumb.

Bithumb

Per a recent report by Infomax, South Korean prosecutors issued an arrest warrant for Jong-Hyun yesterday on allegations of embezzlement, breach of trust and fraudulent illegal transactions. His younger sister, Kang Ji-Yeon, and the CEO of two publicly traded Bithumb affiliates, Inbiogen and Bucket Studio, were also slapped with the same charges by the Seoul Southern District Prosecutor’s Office.

Another Bucket Studio executive was arrested in October on charges of obstructing a police investigation. He reportedly sought to conceal or destroy critical data just before the detectives began onsite raids of three firms with links to Bithumb.

The development comes as authorities attempt to unravel the mysteries surrounding the ownership of the exchange. In late December, Park Mo, the vice president of the largest shareholder firm of Bithumb, committed suicide in his home.

Bithumb was also raided by police and tax agencies for alleged tax evasion. The country’s tax inspectors visited the exchange’s headquarters in Seoul, as part of a push to increase taxation and compliance, the National Tax Service (NTS) said. The current investigation extends to domestic and international transactions of Bithumb Korea, Bithumb Holdings and affiliates.

The exchange was in the news recently after its former chair, Lee Jung-Hoon, was acquitted on charges of defrauding the business of $70 million during the acquisition of the South Korean crypto exchange. South Korean prosecutors were also seeking an eight-year jail sentence for Lee Jung-hoon, the de-facto owner of the country’s second-largest crypto exchange, in another $100 million fraud case.

Earlier this month, the South Korean supreme court ordered Bithumb to pay more than $200,00 in fines for users who suffered following a service outage in 2017. The final ruling overturns a previous court decision in favor of Bithumb against the investors. Monetary restitution to victims is said to remedy damages ranging from as little as $6 to around $6,400 to each of the 132 investors who filed a lawsuit against the crypto exchange operator.

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<