Hold onto your hats, crypto enthusiasts, because Bithumb is back in the spotlight, and not in the way they'd hoped! This South Korean crypto exchange giant can't seem to shake off its legal troubles. From past raids to juicy allegations of embezzlement and market manipulation, it’s like a never-ending soap opera.
The latest episode? South Korean prosecutors have launched a fresh investigation into Bithumb, suspecting that company funds were misused to snag an apartment for its former head honcho. Imagine this: a search-and-seizure bonanza at Bithumb’s HQ in Yeoksam-dong, Seoul, all happening on March 20.
Here's the scoop: local media suggests Bithumb handed over a whopping 3 billion won (that's about $2.2 million) to Kim Dae-sik, the former CEO turned advisor. The authorities believe some of that cash was funneled into a swanky apartment deposit under Kim’s name in Seongsu-dong, Seoul. And guess what? The deposit’s value reportedly skyrocketed in 2023, with the surplus allegedly funding personal escapades.
The Financial Supervisory Service (FSS) has been on this case like a hawk and has now passed the baton to the prosecutors. Bithumb did fess up to some of these claims, admitting that Kim borrowed money to repay the apartment funds after the FSS started sniffing around.
But wait, there’s more! This isn't Bithumb's first rodeo with legal drama. In 2023, the company found itself in hot water alongside Upbit, all thanks to a probe into a South Korean lawmaker, Kim Nam-kuk. Kim was caught with roughly $4.5 million in Wemix coins on these platforms and was under fire for trading crypto during parliament sessions. Talk about multitasking!
Earlier that same year, Bithumb’s offices were raided amid allegations of price manipulation of BXA (Bithumb Coin). Prosecutors even sought an arrest warrant for Kang Jong-hyun, the rumored puppet master of Bithumb, accusing him of embezzling and manipulating a cool $49 million.
The plot thickens with a bribery and manipulation scheme involving Bithumb’s former CEO, Lee Sang-jun, and pro-golfer Ahn Sung-hyun. Lee was accused of fiddling with stock prices and taking bribes, while Ahn played the middleman. As the gavel fell on December 26, 2024, Lee got two years behind bars, Ahn received four and a half years, and Kang was sentenced to one and a half years.
Stay tuned, folks! With Bithumb’s track record, who knows what’s next in this crypto drama?
