South Korean police brokers raided the places of work of software program maker Hancom Inc. and the house of Hancom Group chairman Kim Sang-Cheol on suspicions of manipulating the worth of Arowana tokens and making a slush fund on Oct. 20, in accordance to native media experiences.
The Gyeonggi Nambu Provincial Police Station despatched investigators to Hancom’s headquarters within the metropolis of Seongnam and Kim’s home to grab paperwork and digital data.
Arowana’s worth manipulation
The seizure and raid got here after hypothesis that Arowana’s token worth skyrocketed because of worth manipulation.
In April, the Arowana token was issued on the Bithumb digital asset buying and selling platform, and its worth shot up from its beginning worth of fifty received ($0.03) within the first 30 seconds upon launch to 53,800 received ($37.56). The token then plummeted to 300 received.
Min Byung-deok, a Democratic Occasion of Korea member, ordered an investigation into the token.
Hancom With, Hancom’s blockchain subsidiary, has invested in Arowana Tech, the creator of the Arowana token. Beforehand, a number of information media broke the information that Kim owned the Arowana token by means of a secret Market Making (MM) contract and that Kim managed the tokens by means of his son and directed the creation of a slush fund.
In the meantime, Kim has been dealing with prices, together with embezzlement, associated to allegations over the creation of slush funds utilizing the earnings from Arowana.
In October 2021, native TV station JTBC printed a transcript that featured a dialog involving Kim, Per Paxnet, and Asia Kyunjae, Kim, who claimed they “personal Arowana. “Kim additionally stated a slush fund was created to distribute to 10 individuals to debate methods to generate profits.
Hancom has since printed statements to refute allegations that Kim owns Arowana and claimed the CEO made a “poor alternative of phrases. “
Bithumb has delisted and suspended buying and selling of Arowana as of Oct. 26, 2021.
In the meantime, Lee Jong Hoon, the previous chairman of Bithumb, was summoned to function a witness and testify within the ongoing investigation into Arowana’s worth manipulation by the Nationwide Meeting however failed to seem. The Political Affairs Committee plans to deliver prices in opposition to Lee and has resummoned him to testify on the twenty fourth.
