Bithumb Under Investigation as South Korean Police Raid Company Headquarters

Crypto exchange Bithumb is under investigation as South Korean police have raided the company's headquarters. This action is in response to claims of embezzlement

Crypto exchange Bithumb is being investigated by South Korea’s police, who have reportedly raided the company’s headquarters. The action follows claims of embezzlement against former chief executive officer (CEO) Kim Dae-sik.

The inquiry is said to be concentrating on a specific financial transaction involving a substantial amount.

According to reports, the probe centers on a company lease deposit, said to be worth $2 million, which prosecutors allege Kim Dae-sik used to buy an apartment for his own use.

While the exact sequence of events is still being pieced together, the large-scale transaction is said to have been a key focus for officials.

In response to these claims, Bithumb has stated that the former CEO has already fully repaid the entire sum in question. However, despite this restitution, the investigation is ongoing.

This persistence suggests that the prosecutors intend to closely scrutinize the facts surrounding the original usage of the corporate funds.

Bithumb’s Public Listing Bid

This investigation comes at a critical time for Bithumb as the cryptocurrency exchange is actively pursuing another attempt to become a publicly traded company.

Current CEO Lee Jae-won is reportedly pushing forward with the Initial Public Offering (IPO) process.

This move to go public is not new for Bithumb. The company’s ambitions to list on the stock market date back to 2020. However, previous attempts have encountered various challenges, preventing the successful completion of the IPO.

A major setback occurred when the prosecution launched an investigation into AOA Chairman Bang's alleged fraud charges. This investigation, in turn, led to a broader inquiry into Bithumb.

Later, Bithumb's IPO plans were stalled once more as the Fair Trade Commission (FTC) began an investigation into Bithumb's affiliate programs, which are suspected of engaging in unfair competition.

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