Bithumb’s Biggest Shareholder Targeted In Embezzlement Probe

Key Points:

• The Financial Investigation Division, 2 of the Seoul Southern District Prosecutor’s Office, has sent an investigator to Vident, linked to the alleged embezzlement case of Bithumb’s actual owner, Kang Jong-hyun.
• Kang has been indicted and charged with embezzlement and breach of trust, among other charges.
• Kang was previously rumored to be romantically linked to actress Park Min-young. The prosecution questioned her as a reference in the investigation on the 13th of this month.

According to a Korean source report, the largest shareholder of Bithumb Holdings, ‘Vident,’ is being subjected to a search and seizure by the prosecution due to suspicions of embezzlement of affiliated companies of Bithumb.

The Seoul Southern District Prosecutor’s Office Financial Investigation Division 2 has dispatched a prosecutor and an investigator to Vident since the morning of the 22nd for this purpose. The investigation is also said to be linked to the alleged embezzlement case of Mr. Kang Jong-hyun, who is known as the actual owner of Bithumb.

Mr. Kang has already been arrested and indicted for the embezzlement case of Bithumb affiliates on the 20th. The charges against him include breach of trust and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes and fraudulent and illegal transactions under the Capital Markets Act.

He is suspected of conspiring with his sister, Kang Ji-yeon, of diverting company funds or manipulating stock prices and trade convertible bonds (CB) under borrowed names to evade disclosure obligations.

Interestingly, Kang was previously rumored to be romantically linked to actress Park Min-young. The prosecution questioned her as a reference in the investigation on the 13th of this month.

Vidente holds a 34.22% stake in Bithumb Holdings, making it the largest shareholder. In turn, Inbiogen, a kiosk distributor, is the largest shareholder of Vident, while Bucket Studio, a content distributor, is the largest shareholder in Inbiogen. The prosecution had previously conducted searches and seizures of Vident, Inbiogen, and Bucket Studio in October last year.

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