In another Bithumb financial misappropriation case, prosecutors has arrested a top executive of the cryptocurrency exchange. According to local report, prosecutors arrested Kang Jong-hyun for alleged embezzlement.
The report indicated that Kang Jong-hyun alongside his brother, Kang Ji-yeon collaborated to embezzle funds. According to prosecutors, the brothers manipulated stock prices of inbiogen and video production firm Bucket Studio by issuing convertible bonds. Also, prosecutors alleged that the brothers embezzled corporate funds.
As local prosecutor commenced an investigation into the misappropriation of the two brothers, the Seoul Southern District Court issued an arrest warrant for the arrest of Kang Jong-hyun last month. The arrest emanated based on numerous charges like negligence of duty, market manipulation, and illicit transactions.
More so, Kang Ji-yeon is a top executive of Inbiogen which is an affiliate of Bithumb. Worth noting, Inbiogen has the largest share in Vindete Vidente, which is the biggest shareholder of Bithumb with a 34.2% stake.
Meanwhile, following the commencement of the investigation, Kang Ji-yeon apologized to other shareholders of Bucket Studio via a notice on the firm’s website. According to the notice, the top executive backed his brother stating that the allegations before him are not true. Further, Kang Ji-yeon pledged to cooperate with prosecutors in the course of the investigation.
Highlights of Bithumb’s recent crisis
This month, the South Korean National Tax Service agency commenced investigation relating to tax offenses allegedly committed by Bithumb. Due to that, prosecutors raided the cryptocurrency exchange’s headquarters in Seoul.
However, the development surfaced few weeks after Park Mo, another top shareholder of the crypto exchange allegedly took his own life. Then, Binbits reported that Park who is also a shareholder of Bithumb is under investigation alongside his brothers for allegedly manipulating market prices.
According to Binbits, Park before his death worked alongside Kang Jong-hyun to manage the affairs of the cryptocurrency exchange as an accountant. Reports suggested that Park took his own life due to the investigation surrounding him.
The host of investigations and controversies surrounding Bithumb has clouded the future of the cryptocurrency exchange. As the largest crypto exchange in South Korea, the cryptocurrency community is hopeful that the leadership of Bithumb would resolve its crises soon.