Hold onto your hats, folks, because Bithumb is back in the spotlight, and it's not for winning any popularity contests! This time, the South Korean crypto exchange is under the magnifying glass for allegedly using company funds to snag a fancy apartment for its former CEO. Talk about perks of the job, right?
The Seoul Southern District Prosecutors’ Office recently rolled out the red carpet for a search and seizure operation at Bithumb’s headquarters in Yeoksam-dong, Seoul. The hot topic? A hefty 3 billion won (that's about $2.2 million) allegedly handed over to Kim Dae-sik, Bithumb's former CEO and now an advisor. Rumor has it, a chunk of that cash went into paying the deposit on a swanky apartment in Seongsu-dong, Seoul. And guess what? That deposit reportedly ballooned in value, with the extra dough allegedly going towards Kim's personal piggy bank.
The Financial Supervisory Service caught wind of this and decided it was time to pass the baton to the prosecutors. In a twist, a Bithumb spokesperson admitted that some of the allegations held water. They mentioned that Kim took out a loan post-investigation to pay back the apartment funds. Could this be a case of too little, too late?
Bithumb's no stranger to legal drama. Earlier in 2023, it was raided along with Upbit in a probe of South Korean lawmaker Kim Nam-kuk, who was caught with a cool $4.5 million in Wemix coins. The plot thickens as Kim was accused of trading crypto during government meetings – talk about multitasking!
And let's not forget January’s raid, when authorities swooped in due to suspicions of price manipulation involving Bithumb Coin (BXA). This was hot on the heels of an arrest warrant for Kang Jong-hyun, the alleged mastermind behind Bithumb, accused of embezzling a whopping $49 million.
As if a movie script, the bribery and market manipulation saga also roped in Bithumb’s former CEO, Lee Sang-jun, and pro golfer Ahn Sung-hyun. Lee was fingered for fiddling with stock prices, while Ahn played the middleman. Fast forward to December 2024: Lee got two years in the slammer, Ahn four and a half, and Kang one and a half.
With a history like this, Bithumb's story is one wild ride in the crypto coaster. Stay tuned to see what other twists and turns await!
