Prosecutors have issued an arrest warrant for Kang Jong-hyun, the owner of South Korea’s largest cryptocurrency exchange Bithumb.
According to local media reports, an arrest warrant was issued on February 2 for alleged embezzlement for Kang Jong-hyun. Jonghyun; He will be prosecuted by the Seoul Southern District Court for negligence of duty, illegal transactions, manipulation of the market, and many other crimes. Network access is also blocked for other administrators to ensure security.
Bithumb Owner Arrested! Reason: Corruption
Kang Ji-yeon, chairman of Bithumb member Inbiogen, owns the largest stake at 34.2 percent in Vidente, which is also Bithumb’s largest shareholder. Prosecutors alleged that he manipulated stock prices with video production company Bucket Studio by issuing convertible bonds and embezzling company funds.
Bithumb’s strongest shareholder, Kang Ji-yeon, apologized to the shareholders in an announcement posted on the Bucket Studio website. Ji-yeon stated that the allegations against her brother have yet to be confirmed. The shareholder also stated that he would work with the authorities on the investigation.
Situations Supporting Event Confusion Continue
Due to the ongoing tax investigation by inspectors, Bithumb’s headquarters in Seoul was raided. The plot was further complicated when Bithumb shareholder Park Mo was found dead in her home in late December. Being investigated for embezzlement and market manipulation, Park Mo suspects that he took his own life on charges brought against him.