According to local news outlet Infomax, South Korean prosecutors requested Arrest warrant for Kang Jong-Hyun, chairman and owner of cryptocurrency exchange Bithumb, Jan. 25. Kang is wanted on charges of embezzlement related to his activities on the exchange.
On the same day, the 2nd Financial Investigation Division of the Seoul Southern District Public Prosecutors Office convicted Mr. Kang and two executives of Bithumb on suspicion of embezzlement and breach of trust under the Act on Aggravated Punishment of Specific Economic Crimes. The executive was also charged with engaging in fraudulent and illegal trading under the Capital Markets Act.
Cointelegraph previously reported on January 10 that Bithumb was placed under a “special tax audit” by the country’s tax agency. Concurrently with the incident, Kang is under investigation for allegedly manipulating the stock prices of Bithumb affiliates Inbiogen and Bucket Studio through the issuance of convertible bonds. Vidente is currently Bithumb’s largest shareholder with a 34.2% stake.
On December 30, 2022, Bithumb’s largest shareholder, Park Mo, Found dead in front of his home following an investigation into his role in allegedly embezzling funds from Bithumb affiliates. Mo is suspected that he may have taken his own life due to the nature of the criminal charges filed against him.
After development, Lee Jung-Hoon, former chairman of Bithumb, was acquitted. About a $70 million fraud charge related to his activities on Bithumb. The exchange is one of the largest exchanges in South Korea, with a 24-hour trading volume of $467 million.