South Korean prosecutors seek arrest warrant for Bithumb owner: report


According to local news outlet Infomax, South Korean prosecutors requested an arrest warrant on January 3. 25 for Kang Jong-Hyun, Chairman and Owner of Cryptocurrency Exchange Bithumb. Kang is wanted on allegations of embezzlement related to his stock exchange activities.

On the same day, Kang and two Bithumb executives were sentenced by the Second Financial Investigation Department of the Seoul South District Public Prosecutor’s Office for embezzlement and breach of trust under the Aggravated Punishment Act for specific economic crimes. The executives have also been accused of conducting fraudulent transactions that are illegal under the Capital Markets Act.

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One of the few public photos of Kang Jong-hyun. Source: Korea Post English

Cointelegraph previously reported in January. 10 that Bithumb has been placed under a “special tax investigation” by the country’s National Tax Service. Concurrent with the incident, Kang is under investigation for his alleged role in manipulating the share prices of Bithumb Inbiogen and Bucket Studio subsidiaries through the issuance of convertible bonds. Vidente is currently the largest shareholder in Bithumb with a stake of 34.2%.

in December. 30, 2022, Bithumb’s largest shareholder, Park Mo, was found dead in front of his house following investigations into his alleged role in embezzling funds from Bithumb-related companies. It is suspected that Mo may have committed suicide due to the nature of the criminal allegations against him.

Following the development, Lee Jung-Hoon, the former president of Bithumb, was found not guilty of fraud of $70 million in connection with his activities at Bithumb. The exchange is one of the largest in South Korea, with a 24-hour turnover of $467 million.