Kang Jong-Hyun, the chairman and owner of the cryptocurrency exchange Bithumb, was the subject of a South Korean prosecutor’s request for an arrest order on January 25, according to the regional news source Infomax. On account of alleged embezzlement in connection with his actions at the exchange, Kang is wanted.
In accordance with the Act on the Aggravated Punishment of Specific Economic Crimes, Kang and two Bithumb executives were sentenced on the same day by the Financial Investigation 2nd Division of the Seoul Southern District Prosecutor’s Office. According to the Capital Markets Act, the executives were also accused of engaging in fraudulent and unlawful operations.
The National Tax Service of the nation had earlier informed Cointelegraph on January 10 that Bithumb was the subject of a “special tax inquiry.” In connection with the incident, Kang is being looked into for his suspected involvement in the issuing of convertible bonds in order to manipulate the stock prices of Bithumb affiliates Inbiogen and Bucket Studio. With a 34.2% interest in Bithumb, Vidente is now the company’s largest stakeholder.
Park Mo, the main stakeholder of Bithumb, was discovered dead in front of his own house on December 30, 2022, as a result of inquiries into his suspected involvement in the theft of money from businesses affiliated with Bithumb. Mo may have committed suicide, according to speculation, given the seriousness of the charges against him.
Following this outcome, Lee Jung-Hoon, the former chairman of Bithumb, was cleared of a fraud accusation involving $70 million relating to his actions at Bithumb. The exchange is one of the biggest in South Korea, with a $467 million transaction volume each day.