Authorities Arrest Bithumb Owner Over Charges of Embezzlement

• With a 34.2% holding, Vidente Vidente is Bithumb’s largest stakeholder.
• Kang Jong-hyun is the older brother of Kang Ji-yeon, the CEO of a Bithumb subsidiary.

Embezzlement accusations have resulted in the arrest of the presumed true owner of Bithumb, South Korea’s biggest cryptocurrency exchange.

Media outlets in his own country claim that Kang Jong-hyun was taken into custody on suspicion of embezzlement on February 2. Moreover, on January 25th, the Seoul Southern District Court issued an arrest warrant for the businessman on many allegations, including dereliction of duty, market manipulation, and fraudulent transactions.

Furthermore, he is the older brother of Kang Ji-yeon, the CEO of Bithumb subsidiary Inbiogen, and is now at the age of 41. With a 34.2% holding, Vidente is Bithumb’s largest stakeholder, and the company owns the majority of its stock.

Multiple Allegations by Prosecutors

Prosecutors say the brothers plotted to use the sale of convertible bonds to illegally syphon money and manipulate stock prices of Inbiogen and video production company Bucket Studio. Moreover, the CEO of Bucket Studio, Kang Ji-yeon, has issued an apology to shareholders on the company’s website. And said that he would assist authorities in their investigation of the allegations made against his brother.

Moreover, a probe of the biggest cryptocurrency exchange in South Korea was reportedly initiated on January 10th. As part of the continuing tax investigation, Bithumb’s Seoul offices were allegedly searched by investigators.

Due to charges of theft and market manipulation, he was also the focus of a probe. It was believed that the accusations against Park Mo led to his suicide. Furthermore, the marketplace first opened in 2014, and it now supports 191 different currencies and 287 different trade pairings.

Recommended For You:

S.Korean Tax Authorities Reportedly Launches Inquiry Against Bithumb