The South Korean authorities have launched an investigation into the local exchange of the Bithumb cryptocurrency, adding to the legal problems of the company.
The police performed a search and a crisis at the headquarters of Bithumb to Seoul as part of the investigation, South Korean newspaper Chosun every day reported Wednesday, quoting a declaration from the Office of Prosecutors of the Southern District of Seoul. The case includes allegations according to which the former CEO and advisor to Bithumb Kim Dae-Sik used business funds to pay a guarantee of $ 2 million for his rental of personal apartments.
Bithumb did not immediately respond to Decipher Request for comments sent outside of South Korean office hours.
The company commented on the investigation for Chosun every day Wednesday.
“Some suspicions are true, and immediately after the survey of the financial supervision service, advisor Kim has reimbursed all the funds he had borrowed from a large company to buy an apartment,” said a Bithumb representative to the publication.
Founded in 2014, Bithumb quickly accumulated a strong public in South Korea, the company representing approximately 90% of the market share by the negotiation volume at a given time, according to to the local newspaper in English Korea Times.
But in recent years, a burst of tax evasion probes and allegations of fraud against the high leaders of the company has raised concerns about the business practices of the company.
Bithumb has since undergone a restructuring, and he goes forward with plans to launch an IPO and increase his market share. This last scandal, however, threatens to complicate his candidacy to secure registration on the Nasdaq stock exchange.
South Korea is one of the largest cryptographic trading markets. Almost 15% of its population is recorded with an exchange of crypto, Bloomberg reported in December. Meanwhile, crypto trade in the country overshadowed that of actions at the end of last year, according to the publication.
Edited by James Rubin
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