South Korean Prosecutors Accusing Bithumb for Price Manipulation and Fraudulent Transactions
The prosecutors charged the South Korean-based crypto exchange Bithumb with price manipulation and engaging in fraudulent exchanges.
The Prosecutors from the Seoul Southern District Court stopped by the crypto exchange offices to probe a suspicious transaction. The prosecutors revealed that Bithumb’s fraudulent transaction involved altering the price list of crypto assets.
Bithumb Under Probe
On January 26, the prosecutors in Seoul made an unexpected visit to Bithumb offices to investigate a transaction contravening the regulations.
A South Korean News Agency, Yonhap, reported the Thursday incident where the prosecutors focused on identifying the specific coin traded on the Bithumb platform. The prosecutors allege trade involved either personal gains or corporate benefits. Yonhap’s report disclosed that the ongoing Bithumb scrutiny would necessitate the prosecutors to compare the transaction information of Bithumb against other crypto exchanges that traded the coin under probe.
Currently, Yonhap revealed that the crypto exchange engages in GoMoney2 trading, whereas the Pixel coin has never been listed on the Bithumb platform.
Before the Bithumb scandal, other crypto exchanges Coinone and Upbit had delisted Pixel coin for not being up to standards.
Following this, an executive from Seoul District court proclaimed that the prosecutors’ best interest was in the suspicious transaction involving an unknown coin.
Seoul Prosecutors Pursue Bithumb for Crypto Fraud
Correspondingly, earlier this month, the South Korean Tax regulators made moves to probe Bithumb. The regulators’ investigations examined whether the crypto exchange local and foreign deals prompted tax evasion.
A few days later, the Seoul prosecutors demanded the arrest of Bithumb Chairman Kang Jong-hyun, his sister Kang Ji-Yeon and the chief executive of the embattled crypto exchange.
Allegedly, the three executives were charged with money embezzlement and manipulation of stock prices.
Bithumb is the parent company of Inbiogen and Bucket Studio, which are also linked to the ongoing scrutiny.
Before the current probe, Bithumb escaped the regulators’ move to shut down the non-compliant crypto exchange in 2021. The unplanned decisions halted the operation of over 71 firms in the digital industry.
The crypto firm is a compliant firm ranking among the top five licensed exchanges. Still, its the second largest crypto exchange per market share in South Korea.
Editorial credit: Primakov / Shutterstock.com
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