Cryptocurrency exchange Bithumb has come under scrutiny following a raid by South Korean prosecutors, investigating allegations that its former CEO embezzled funds to buy an apartment.
Suspicions of Financial Misconduct
The Seoul prosecutors searched Bithumb offices on March 20, examining claims that former CEO Kim Dae-sik received a 3 billion won deposit for an apartment lease, using part of it for personal purchase.
Funds Reimbursement and Bithumb's Response
Bithumb stated that after the financial supervisory investigation, Kim took a loan to repay the funds to the exchange. A Bithumb representative confirmed that some of the allegations are true, following the findings handed over to the prosecutor by financial regulators.
IPO Plans and Legal Challenges
The exchange is working towards an IPO despite the allegations. Bithumb CEO Lee Jae-won is pushing forward the IPO preparations. Previous legal issues delayed the IPO but the acquittal of Bithumb's former chairman has cleared the way for renewed efforts.
Bithumb is determined to overcome legal hurdles on its way to an IPO, despite ongoing investigations. Attention to financial regulations remains high.
