The suspected actual proprietor of South Korea’s largest crypto trade Bithumb has been arrested on alleged embezzlement expenses on Feb. 2 native time.
In line with native media stories, Kang Jong-hyun was arrested on expenses of alleged embezzlement. The Seoul Southern District Courtroom issued an arrest warrant for the businessman on Jan. 25 with a number of expenses, together with dereliction of responsibility, market manipulation, and fraudulent transactions.
The 41-year-old is the elder brother of Kang Ji-yeon, the top of Bithumb affiliate Inbiogen. The agency holds the most important share in Vidente Vidente, which is the most important shareholder of Bithumb with a 34.2% stake.
In line with prosecutors, the brothers colluded to embezzle company funds and manipulate inventory costs of Inbiogen and video manufacturing agency Bucket Studio via the issuance of convertible bonds.
In a discover on the Bucket Studio web site, CEO Kang Ji-yeon apologized to shareholders and mentioned the claims in opposition to his brother have been “unconfirmed,” including that he’ll cooperate with the authorities within the investigation.
On Jan. 10, Cointelegraph reported that the South Korean Nationwide Tax Service company launched an investigation into South Korea’s largest crypto trade. Investigators reportedly raided Bithumb’s Seoul headquarters as part of the continuing tax probe.
The saga goes even deeper as Bithumb’s largest shareholder, Park Mo, was discovered useless in entrance of his own residence in late December.
He was additionally topic to an investigation amid allegations of embezzlement and market manipulation. It was suspected that Park Mo took his personal life as a result of expenses introduced in opposition to him.
Associated: Bithumb former chair Lee Jung-Hoon acquitted within the first occasion
Bithumb has a 24 hours buying and selling quantity of $370 million, in response to CoinGecko. The trade, established in 2014, presents 191 cash and 287 buying and selling pairs, BTC/KRW is the preferred.
