South Korean authorities raid Bithumb in corporate fund misuse inquiry
South Korean authorities raid Bithumb in corporate fund misuse inquiry South Korean authorities raid Bithumb in corporate fund misuse inquiry
South Korean prosecutors are probing Bithumb's financial governance following estimated $2.3 million fund misuse.
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South Korean prosecutors raided the headquarters of crypto alternate Bithumb on March 19 as part of an investigation into whether the companyâs veteran CEO misused corporate funds to aquire an rental, in step with local media reports.
Authorities from the Seoul Southern District Prosecutorsâ Situation of enterprise searched Bithumbâs Yeoksam-dong offices, attempting into claims that the alternate equipped a 3 billion received ($2.3 million) rent deposit to its veteran CEO and up to date consultant, Kim Dae-sik.
Investigators suspect that Kim primitive a chunk of these funds to affect a deepest order in Seoulâs Seongsu-dong district.
The timing of the investigation raises new considerations for Bithumb, which has been working toward a lengthy-awaited preliminary public offering (IPO).
CEO Lee Jae-received no longer too lengthy within the past reaffirmed the companyâs intent to checklist on the stock market in 2025 and has made structural adjustments to decrease just risks tied to key shareholders.
Funds repaid
The Financial Supervisory Carrier (FSS), South Koreaâs financial regulator, previously examined the case sooner than transferring it to prosecutors.
Following the investigation, a Bithumb spokesperson acknowledged in an interview with The Chosun Day to day that Kim had taken a mortgage from an external lender after the FSS investigation and later repaid the funds.
Despite the compensation, prosecutors are reviewing whether the genuine transaction violated financial regulations or corporate governance principles. The case has intensified scrutiny over Bithumbâs inner financial administration as authorities continue to video display the countryâs crypto sector for capacity misconduct.
It has also raised considerations about broader governance and financial practices contained within the alternate, which has faced repeated just and regulatory scrutiny in latest years.
Listing allegations
The raid comes amid separate allegations that Bithumb and rival alternate Upbit facilitated token listings via intermediaries who allegedly charged initiatives hefty expenses.
Researcher Wu Blockchain reported that some initiatives paid between $2 million and $10 million to secure listings on the exchanges. The allegations also imply that determined intermediaries had ties to Upbit shareholders and market makers, with expenses starting from 3% to five% of token affords.
Upbit has denied the claims and demanded that Wu Blockchain present a checklist of initiatives that allegedly paid brokerage expenses, calling for evidence to crimson meat up the accusations.
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Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his abilities worldwide for over a decade. That specialise in financial journalism, he now specializes in crypto reporting.
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