South Korean prosecutors have launched an investigation into Bithumb over claims of fund misuse linked to property acquisition.
The Alleged Purchase
The Seoul Southern District Prosecutors’ Office conducted a thorough search at the Bithumb headquarters to find evidence of alleged fund misuse. Reports suggest that Bithumb allocated 3 billion won to former CEO Kim Dae-sik. Part of this sum is suspected to have been used for an apartment lease deposit in Seoul. The deposit's value reportedly increased significantly in 2023.
Bithumb’s History of Legal Scrutiny
Bithumb has previously been under legal scrutiny. In 2023, the exchange was part of investigations due to the involvement of lawmaker Kim Nam-kuk, who was found holding a substantial amount of cryptocurrency. Authorities alleged he traded during parliamentary sessions. Earlier that year, there were allegations of price manipulation involving BXA tokens.
Consequences of the Investigation
Bithumb and its leaders have faced legal consequences in the past, with past executives convicted for stock manipulation and bribery. The company acknowledged the latest allegations but indicated that the former CEO repaid the misused funds soon after.
The current investigation into Bithumb will draw regulatory attention and could lead to further legal ramifications.
