Zuid -Korean officers of Justice were the headquarters of Crypto Exchange Bithumb on 19 March as part of an investigation into the question of whether the former CEO of the company, according to the local media reports, abused an apartment to buy an apartment.
Authorities of the office of the public prosecutor of Seoul Southern District searched the offices of Bithumb’s Yeoksam-Dong and investigate the claims that the exchange has provided a lease of 3 billion ($ 2.3 million) to his former CEO and current advisor, Kim Dae-Sik.
Researchers suspect that Kim used some of these funds to acquire a personal home in the Seongsu-Dong district of Seoul.
The timing of the research calls new concern for Bithumb, who has worked on a long -awaited initial public offer (IPO).
CEO Lee Jae-Won recently confirmed the intention of the company to state on the stock market in 2025 and has made structural changes to minimize legal risks linked to important shareholders.
Funds repaid
The Financial Supervisory Service (FSS), the financial regulator of Zuid -Korea, previously investigated the case before he exaggerated it to officers.
After the investigation, a Bithumb spokesperson in an interview with the Chosun recognized that Kim had taken over a loan from an external lender after the FSS investigation and later repaid the funds.
Despite the reimbursement, public prosecutors have evaluated whether the original transaction has violated financial regulations or rules for corporate governance. The case has control over the internal financial management of Bithumb, since the authorities continue to follow the country’s crypto sector in potential misconduct.
It has also expressed concern about broader governance and financial practices within the stock market, which has had to deal with repeated legal and regulatory control in recent years.
Indication of allegations
The raid comes in the midst of individual allegations that Bithumb and Rival Upbit token have facilitated listings through intermediaries who are reportedly charged major costs.
Researcher Wu Blockchain reported that some projects between $ 2 million and $ 10 million paid to secure offers at the stock exchanges. The allegations also suggest that certain intermediaries had ties with Upbit shareholders and market makers, with reimbursements ranging from 3% to 5% of token supplies.
UPBIT has refused and demanded the claims that Wu Blockchain provided a list of projects that are reportedly paid brokerage costs, which calls for evidence to support the accusations.