South Korean Prosecutors Raid Bithumb Exchange

Seoul prosecutors searched and seized documents on the Bithumb crypto exchange on suspicion of price fraud with crypto assets.

According to a statement by South Korean law enforcement, Bithumb is suspected of illegal transactions and price manipulation of the so-called “Kimchi Coins” – Go Money 2 and Pixel Coin, issued by local companies.. During the raid, law enforcement officers seized financial documentation, and also collected data on transactions with these crypto assets.

At the moment, the GoMoney 2 token is still traded on Bithumb, while the Pixel has never been listed on the platform.. The prosecutor's office plans to search two more local exchanges – Coinone and Upbit, which previously excluded Pixel from the listing for non-compliance with internal standards.

Last week, the Seoul Prosecutor's Office requested an arrest warrant for Kang Jong Hyun, who is believed to be the real owner of Bithumb, although another person is listed as the head of the company according to documents.. Hyun is suspected of embezzlement, embezzlement and fraud through affiliated companies. His sister Kang Ji-yeon, the CEO of several Bithumb subsidiaries, is also under suspicion.