Bithumb Owner Kang Arrested In South Korea Over Embezzlement

Kang Jong-hyun, the purported de-facto proprietor of the local bitcoin exchange known as Bithumb, was taken into custody by South Korean authorities on allegations of stock manipulation and embezzlement, respectively.

The Seoul Southern District Court issued the warrant for the entrepreneur’s arrest on January 25 with various counts, including dereliction of duty, market manipulation, and fraudulent transactions.

This person, who is 41 years old, is Kang Ji-older yeon’s brother. Kang Ji-yeon is the leader of the Bithumb affiliate Inbiogen. The company has the greatest share in Vidente Vidente, which has a stake in Bithumb equal to 34.2% of the company’s total value and is the largest shareholder in Bithumb.

Prosecutors claim that the brothers conspired together to steal money from their company, Inbiogen, and to artificially inflate the stock prices of Bucket Studio, a video production company. They did this by issuing convertible bonds.

The biotechnology company Inbiogen is the most significant stakeholder in the video equipment maker Vidente, which in turn is the most significant shareholder in Bithumb.

An inquiry against the biggest cryptocurrency exchange in South Korea was opened on January 10 by the South Korean body known as the National Tax Service. As part of the continuing investigation into Bithumb’s tax practices, authorities conducted a search warrant at the company’s headquarters in Seoul.

The story goes even deeper when Bithumb’s biggest shareholder, Park Mo, was discovered dead in front of his own house in late December. Park Mo’s death adds another layer to the ongoing drama.

In addition to this, an inquiry was opened against him because there were charges of market manipulation and theft. It was hypothesized that Park Mo had killed himself as a result of the allegations that had been made against him.