Key Takeaways
- South Korean crypto exchange, Bithumb faces accusations of misuse of company funds for personal needs.
- According to South Korean prosecutors, a former executive used a large amount of company funds to purchase an apartment.
- As per the reports, a former CEO of Bithumb, Kim Dae-sik used $2 million from company funds to pay the security deposit for an apartment rental.
- Bithumb has been facing several legal issues and the current problem arises amid them.
- Meanwhile, the Bithumb platform has been planning to list its shares on the Nasdaq recently.
One of the largest cryptocurrency exchanges in South Korea, Bithumb is with hot headlines yet again. According to recent reports, the prosecutors of South Korea have launched an investigation against the exchange for misusing the company funds for personal needs. The Bithumb exchange is accused of the improper use of company funds for the purchase of an apartment for its former executive. With the claims looming over the exchange, the officials from the Seoul Southern District Prosecutors’ Office have issued a raid against the company in which the Bithumb headquarters in Yeoksam-dong and other offices were raided on Wednesday.
According to local reports, the Bithumb platform has offered 3 billion KRW which equals $2 million to its former CEO and current advisor, Kim Dae-sik to rent an apartment in Seongsu-dong, Seoul. This acquisition and the related case were first reviewed by the Financial Supervisory Service of South Korea and later forwarded the same to the prosecutors.
Although the Buithumb officials refused to comment on the issue initially, one of the spokespersons acknowledged that some of the acquisitions were true. He then added that Kim had repaid the loaned amount completely after receiving a loan. However, the case against the company for misusing the funds still exists. This is not the first time that Bithumb is facing legal issues and allegations. There have been instances when Bithumb previously acquisitions.
Past Legal Issues Of Bithumb
The past legal issues faced by Bithumb include tax probes and a raid for price manipulation probe. The Bithumb exchange has been subject to tax investigation twice, in 2018 and 2023. The recent tax investigation noted tax evasion of domestic and international transactions in Bithumb.
The former chairman of Bithumb, Lee Jung-Hoon also faced acquisitions for a fraud of $100 million. Another former chairman, Kang Jong-hyun, and his sister, Kangji-yeon were charged in an embezzlement case earlier. Another major legal consequence faced by Bithumb was for manipulating the price of a coin. In this case, prosecutors investigated the transactions to a specific person or entity for moving the price of a coin, making a profit.
Bithumb Moves Forward With Public Listing
Amidst the latest legal issues and acquisitions, reports note that Bithumb is moving forward with its public listing. The company has previously announced its plans to list on the Nasdaq. The plans are still on, suggest reports. As per available information, Lee Jae-won, the current CEO of Bithumb is pursuing the Initial Public Offering (IPO) process, attempting to make Bithumb a publicly traded company.