Media reports arrest of Bithumb owner

In South Korea, the owner of the cryptocurrency exchange Bithumb, Kan Joon-hen, was arrested on suspicion of embezzlement and manipulating the share prices of several affiliated firms. Local media report report.

Journalists noted that a court issued the corresponding decision on February 2.

At the end of January, the Seoul Prosecutor’s Office issued an arrest warrant for Hen and placed him on the wanted list. According to investigators, his brother Ji En — head of the exchange’s subsidiaries Inbiogen and Bucket Studi — helped manipulate the shares by issuing convertible bonds.

In October 2022, authorities conducted raids at the offices of the mentioned firms, as well as at the largest shareholder of Bithumb Holdings (34.2%) — the company Vidente.

At the end of December, the vice-president of the latter was found dead. Journalist Colin Wu stated that Korean authorities also suspected him of corruption and financial malfeasance.

Earlier, police carried out a series of raids at the offices of companies linked to the exchange in connection with a case of alleged fraud related to the $25 million BXA token sale. At the same time, law enforcement summoned for questioning the then-CEO of Bithumb and the beneficiary of Bithumb Holdings, Lee Jong-hoon.

Media reports said that Hoon was considered the real owner of the exchange. Under the charges of deceiving investors, he faced up to eight years in prison. However, he was later acquitted.

Earlier, the National Tax Service of South Korea initiated an investigation into possible violations of tax law by Bithumb Korea, Bithumb Holdings and other affiliated entities.