South Korea police reportedly seized crypto exchange giant Bithumb – a report by Sahil Kohli.

Seoul police have reportedly raided Bithumb, the largest cryptocurrency exchange in South Korea. Seoul Metropolitan Police Agency has reportedly conducted search and seizure investigations at Bithumb's office.

According to a local publication report, Seoul Shinmun, an intelligence crime unit at the capital city Seoul Metropolitan Police Agency, has reportedly conducted search and seizure investigations at Bithumb’s office in the Gangnam District. As reported, the latest actions are purportedly connected with an ongoing police investigation involving Lee Jung Hoon, chairman of the board at Bithumb Korea, and Bithumb Holdings. The exchange has been under investigation for alleged economic fraud. 

 

Bithumb is accused of pre-selling native BXA tokens worth $25 million. 

South Korea’s leading crypto exchange, Bithumb, is reportedly accused of pre-selling native BXA tokens worth about 30 billion won ($25 million) to investors and then not listing the token has allegedly led to losses to investors. The crypto exchange has reportedly issued BXA tokens in 2018 concerning its acquisition by Singapore-based BK Group. The token was purportedly promoted as Bithumb’s native token that eventually turned out to be involved in high scale fraud that caused investor damages of $25 million. Bithumb is the country’s largest cryptocurrency exchange and the ninth-largest by average daily trading volume globally.

 

South Korean authorities seized crypto exchange Coinbit. 

South Korean police have reportedly seized local crypto exchange Coinbit for allegedly inflating trading volumes. According to the Seoul Shinmun report, crypto exchange Coinbit’s offices have been raided for authorities’ alleged fraud. The crypto exchange is being accused of using multiple “ghost accounts” to inflate trading volumes. About 99% of Coinbit’s trading volume has been allegedly manipulated in recent months, which resulted in “unfair profits” of at least $84 million for the crypto exchange. Coinbit has now halted operations amid an ongoing investigation by the police, reported Sahil Kohli. 

Crypto exchanges in South Korea might face stricter regulations from next year as the regulators recently amended a law that will officially bring cryptocurrencies under its legal system.

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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