South Korean Prosecutors Raid Bithumb Headquarters in Misuse of Corporate Funds Investigation
Recently, South Korean prosecutors conducted a raid on the headquarters of cryptocurrency exchange Bithumb to investigate allegations of the misuse of corporate funds by the company’s former CEO. The investigation revolves around suspicions that the exchange provided a 3 billion won lease deposit to its former CEO and current advisor, Kim Dae-sik, who allegedly used a portion of these funds to purchase a personal residence.
Investigation and Concerns
- Authorities from the Seoul Southern District Prosecutors’ Office searched Bithumb’s offices in Yeoksam-dong.
- The investigation raises concerns for Bithumb’s planned initial public offering (IPO).
- CEO Lee Jae-won has made structural changes to mitigate legal risks associated with key shareholders.
Funds Repaid and Regulatory Scrutiny
Following the initial investigation by the Financial Supervisory Service (FSS), it was revealed that Kim had taken a loan from an external lender, which was later repaid. However, prosecutors are now looking into potential violations of financial regulations and corporate governance rules in the original transaction. This case has brought attention to Bithumb’s internal financial management and has raised broader concerns about governance and financial practices within the exchange.
Listing Allegations and Denials
- Separate allegations suggest that Bithumb and Upbit facilitated token listings through intermediaries who charged hefty fees.
- Projects reportedly paid between $2 million and $10 million for listings on these exchanges.
- Upbit has denied these claims and has requested evidence to support the allegations.
