South Korean court orders to seize investors’ shares of Bithumb – a report by Saumil Kohli.

A South Korean court passed an order to seize the share of Bithumb investors on September 14th, 2020. Bithumb is South Korea's leading crypto exchange.

South Korea’s leading cryptocurrency exchange Bithumb came under inspection of Seoul Police due to certain accusations earlier this year. The chairman of Bithumb was found defrauding Bithumb’s customers by fooling them into buying fake tokens. The crypto exchange was accused of dumping its customers by selling an unlisted token. Bithumb has been a hot topic among the crypto community as it was the second cryptocurrency exchange to come under police scrutiny. 

 

South Korean Court ordered to seize the share of Bithumb investors. 

According to the South Korean media outlet Newsfreezone, the Seoul Central District Court passed an order to seize Bithumb investors’ share earlier this week. The crypto exchange was accused of defrauding its customers by fooling them into buying fake tokens. This stance caused investors to lose $25 million. Besides, the crypto exchange was also held responsible for the hacking event in 2017. That said, such allegations are paralyzing the exchange from within and outside. Bithumb’s board chairman Lee Jung-hoon was accused of selling BAX tokens by claiming them as Bithumb’s native token, which was never listed on the exchange. 

 

Bithumb was ordered to pay a portion of the claims filed by victims of the hack. 

Earlier, a South Korean court ordered Bithumb to pay a portion of the claims filed by one of the victims of its 2017 hack. The judge ruled that the crypto exchange was partially responsible for the data breach. The Seoul Central District Court ruled that the Bithumb and the claimant, only known as Jang, were both partly responsible for the data breach. According to the court, the crypto exchange could have directed more resources towards its security systems to prevent the hack. 

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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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