Major South Korean Crypto Exchange Raided by Police in Alleged $25.2M Fraud Case

Major South Korean Crypto Exchange Raided by Police in Alleged $25.2M Fraud Case

South Korean police raided the nation’s largest cryptocurrency alternate, Bithumb on September 2 as a part of an investigation of fraud allegedly dedicated by the group’s predominant shareholder. With the recorded variety of guests to the platform touching 4.11 million between May and July, Bithumb is the most important alternate within the nation.

According to a neighborhood publication, the Seoul Metropolitan Police Agency’s Intelligent Crime Investigation Unit “searched and seized premises” utilized by the alternate as headquarters in Gangnam-gu, Seoul.

Police motion seems to stem from the alleged funding fraud dedicated on the issuance of the BXA, the alternate’s native token. Media studies counsel that “buyers in these tokens suffered losses” after the alternate didn’t checklist them on its platform. The alleged funding fraud is believed to run into tens of millions of {dollars}.

The BXA tokens had been allegedly offered to buyers previous to Bithumb chairman, Lee Jung-hoon’s negotiation for the sale of the alternate with Kim Byung-gun (57), chairman of BK Group. The proposed acquisition didn’t materialize.

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BXA victims are alleging that “Jung-hoon and others inflicted harm by not itemizing the token” despite the fact that the $25.2 million had been raised with an understanding that the token can be listed on the alternate.

Before the raid, Jung-hoon (44), was believed to “have been beneath police investigations for fraud and illegally transferring funds overseas (violation of the Act on aggravated punishment for sure financial crimes).”

In the meantime, Bithumb’s newest brush with authorities comes after it obtained slapped with an order to pay $69 million in withholding taxes in late 2019. Bithumb appealed the choice arguing that the order had been made on baseless grounds.

Incidentally, the raid on Bithumb comes after legislation enforcement within the nation raided the workplaces of one other alternate Coinbit. Authorities allege that Coinbit has been inflating its reported traded volumes and gaining $85 million within the course of.

At the time of writing, the alternate platform appeared unaffected by the day’s occasions.

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