The Bithumb investigation continues; a September 14th ruling from the Seoul Central District Court has resulted in the seizure of shares from major Bithumb shareholders, specifically, BK Group chairman Byung-gun Kim.
The seizure was executed today at Bithumb’s Gangnam office and was executed by the Korean accounting firm Samjong KPMG. The seizure from Bithumb’s shareholders is the latest development in the ongoing Bithumb fraud investigation
Bithumb’s fraud investigation
Bithumb is currently under investigation for fraud; Bithumb was raided twice this month in regard to the fraud investigation, once at Bithumb’s Gangnam office and again at Bithumb’s Seoul office.
The investigation is in relation to the private sale of Blockchain Exchange Alliance (BXA) tokens that Bithumb hosted, as well as Bithumb’s Chairman of the Board of Directors of Bithumb Holdings and Bithumb Korea, Lee Jung-hoo, illegally transferring assets out of the country.
In 2018 Bithumb conducted a private sale for BXA tokens and told investors that once Bithumb was acquired by BK Group chairman Byung-gun Kim, that BXA tokens were to be listed on the exchange. However, the acquisition did not happen and BXA tokens were not listed on Bithumb. As a result, investors suffered significant losses.
Bithumb’s Chairman of the Board of Directors, Lee Jung-Hoo is also under investigation for fraud. Authorities say that Lee attempted to transfer assets overseas without reporting the transfer to the appropriate government agencies.
What’s going on in Korea?
South Korean police have conducted three raids on digital currency exchanges in the past month. On August 26, South Korean Police raided Coinbit, on September 2, police raided Bithumb’s Gangnam office for the alleged fraud from the exchange and its chairman, and on September 7th, police raided Bithumb’s Seoul office looking for more information regarding the ongoing fraud investigations.
From the looks of it, South Korean police and regulators are looking to remove all of the bad actors from their country, even if one of those bad actors is the largest digital currency exchange in South Korea (Bithumb).
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