The company's headquarters, the Korea Digital Currency Exchange Bithumb, has recently attracted the attention of tax and regulatory authorities. In addition, according to the latest news, the prosecutor has requested the arrest warrant for Kang Zhonghui, 41, who is the real user of the data encryption exchange. The case handlers will investigate the bribery charges of key executives of the exchange.

Bithumb user is arrested

According to the disclosure of the legal profession on the 25th, the Office of the Financial Industry Investigation Company, a prosecutor in the south of Seoul, South Korea, made a judgment on two senior executives of Kang and Bithumb affiliated companies. The crime was the crime of misappropriating funds and violating private equity funds in accordance with the Law of the People's Republic of China on the Aggravated Punishment of Certain Economic Crimes, as well as carrying out fraudulent illegal acts in accordance with the Capital Market Law.

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Kang is the eldest brother of Kang Ji-yeon. This person is the CEO of two companies of Bithumb Group, Inbiogen and Bucket Studio. It is said that Kang played a crucial role in the scheme of raising the share price of Bithumb affiliates (Inbiogen and Bucket Studio) based on the human factor of selling convertible bonds. The precondition for Kang to steal the company's assets or manipulate the market was discovered by the prosecutor. In October last year, prosecutors successively cracked and investigated Bithumb's related companies, such as Vident, Inbiogen and Bucket Studio.

Bithumb constantly enriches worries

Vidente holds 34.2% of Bithumb Holdings, and is the only largest shareholder of the company. On the other hand, Inbiogen holds a majority stake in Vident, while Bucket Studio seems to hold a majority stake in Inbiogen. According to a report previously published on the CoinGap website, at the end of the previous year, the body of Vice-President of the United States was found outside their house. After the investigation, the police determined that the way of death was "suspected suicide".

After the policy event, the trading volume of Bithumb has also decreased significantly in the recent period. Bithumb used to be the second largest data encryption exchange in South Korea. Now it has been gradually replaced by Coinone, Korbit and Upbit exchanges. Recently, the investigators also expressed concern about the tax violations submitted by Bithumb Korea, Bithumb Holdings and their affiliates.