HomeNEWSBithumb shareholder commits suicide amid investigations by Korean prosecutors

Bithumb shareholder commits suicide amid investigations by Korean prosecutors

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In a recent report by local media, a shareholder of Bithumb identified as Park Mo took his own in the early hours of today. As revealed, Park is under investigation by local prosecutors for embezzlement and manipulation of market prices before his death.

The report explained that Park served as the accountant under the leadership of his brother, identified as Kang Jong-hyun. Jong-hyun is the current Chairman of Bithumb, while dubbing as the Vice President of Vident. Vident is a KOSDAQ-listed company and it is the largest shareholder of Bithumb, controlling about 34.22% stake in the cryptocurrency exchange.

While serving as the accountant, Park allegedly engaged in numerous illicit activities that attracted the attention of prosecutors. In October, local prosecutors commenced a proper investigation into Park’s alleged money laundering activities. According to local reports, prosecutors have commenced an investigation into the sudden demise of Park.

Previous controversies surrounding Bithumb

However, the recent development brings Bithumb under the negative spotlight once again. Previously, the chairman of the South Korea-based cryptocurrency exchange, Jong-hyun attracted media attention as one of the witnesses regarding a criminal case involving Bithumb former Chairman.

Around October, Binbits reported a criminal investigation regarding fraud allegations against former Bithumb Chairman, Lee Jung-hoon. According to reports, Kim Byung-gun, the chairman of BK group a cosmetic surgery company accused Jung-hoon of defrauding him. The chairman of BK group said Jung-hoon defrauded him of $70 million during a takeover deal for the cryptocurrency exchange.

Additionally, Byung-gun divulged that he paid $70 million as initial payment to acquire the cryptocurrency exchange. As part of the deal, Jung-hoon promised to list BXA as a token by Blockchain Exchange Alliance. Byung-gun belonged to the league of investors that invented the BXA token. He intended to use the proceeds from the token listing to acquire Bithumb.

However, Jung-hoon failed to list the token, resulting in the collapse of the deal. As such, prosecutors are seeking eight years in prison for the former chairman of Bithumb.

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