Media: Bithumb owner placed on police’s wanted list

The Seoul Prosecutor’s Office issued an arrest warrant for the owner of the cryptocurrency exchange Bithumb Kan Jhon-Hen, suspected of embezzlement and manipulating the stock price of several affiliated firms. Local media report.

According to the report, the subsidiaries involved are Bithumb’s Inbiogen and Bucket Studio, headed by Kan’s younger brother, Ji En. Prosecutors allege that he helped manipulate the stock price by issuing convertible bonds.

In October 2022, authorities conducted searches at the offices of the aforementioned firms, as well as at Vidente, the largest shareholder of Bithumb Holdings (34.2%).

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

According to Money Today, the vice president of Vidente, the largest shareholder of South Korean cryptocurrency exchange Bithumb, committed suicide by jumping off a building while being investigated by South Korean prosecutors, suspected of corruption and price manipulation.

— Wu Blockchain (@WuBlockchain) December 30, 2022

Earlier in September 2020, police conducted a series of searches at offices of the companies linked to the exchange as part of a case involving alleged $25 million token-sale fraud. At the same time, authorities summoned for questioning the then-CEO of Bithumb and the beneficiary of Bithumb Holdings, Lee Jong-hoon.

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

South Korea’s National Tax Service is now investigating possible tax violations by Bithumb Korea, Bithumb Holdings and other affiliated entities. The agency is examining the firms’ internal and cross-border transactions.

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