Shadow owner of Bithumb crypto exchange arrested in Korea

South Korean publications report that the Seoul police managed to detain the alleged owner of the largest local cryptocurrency trading platform.

The Seoul Southern District Court issued an arrest warrant for Kang Jong-Hyun last week.. Law enforcement agencies accuse him of embezzlement of client funds of Buthum users, embezzlement and manipulation of the share price on the stock market. For trading in shares, the suspect, according to the decision, appropriated 60 billion won (about $48 million at the current exchange rate) and, with the help of a partner company, began to manipulate the value of securities.

In addition to Kan, a Bithumb-affiliated company named Jo Mo was arrested.. He, according to the procurators, was an accomplice.

Bithumb has a fairly complex network of affiliates. Bithumb owner's sister Kan Ji-yeon is CEO of Inbiogen. This firm owns Vidente, which in turn holds a 34.2% stake in Bithumb.

At the end of January, the Seoul Prosecutor's Office conducted an audit of the Bithumb exchange, during which the company's financial documents were seized.