Authorities in South Korea have initiated a probe into Bithumb, one of the nation’s largest cryptocurrency exchanges, concerning allegations of improper use of company funds to support a prior executive in purchasing a residence.
On Wednesday, officials from the Seoul Southern District Prosecutors’ Office conducted a raid on Bithumb’s headquarters and additional locations, as per local media reports.
Key Points:
- South Korean prosecutors scrutinize Bithumb regarding allegations of misused company funds for a former executive’s apartment purchase.
- The investigation revolves around a 2 billion KRW (approximately $2 million) security deposit made for an apartment rental for Bithumb’s ex-CEO, Kim Dae-sik.
- This legal scrutiny comes as Bithumb, embroiled in various legal disputes, contemplates a stock listing on Nasdaq.
Wu Blockchain reported that some projects have disbursed up to $10 million in fees to list their tokens on exchanges like Upbit and Bithumb. The inquiry highlights claims that Bithumb facilitated a 3 billion KRW ($2 million) security deposit for an apartment rental in Seongsu-dong, Seoul, for its former CEO and current advisor, Kim Dae-sik.
The Financial Supervisory Service, the financial regulator in South Korea, initially reviewed this situation and escalated it to prosecutors. A representative from Bithumb reportedly recognized the validity of some claims, stating that Kim repaid the loaned amount fully after obtaining a loan.
Bithumb has been subject to multiple legal hurdles in recent years, including investigations by tax authorities and a raid linked to a price manipulation scandal. Its latest dilemma surfaces as the firm is rumored to be exploring a Nasdaq listing.
