Bithumb Is Under Investigation For Illegal Virtual Asset Exchange Listing

Key Points:

• South Korean authorities are investigating Bithumb workers for allegedly accepting bribes when the business included cryptocurrencies.
• According to speculations, the prosecution already has proof of unlawful listing on other exchanges, which makes the business nervous.

The prosecution is also looking into the executives and staff of Bithumb for listing virtual currencies in return for money.

On March 17, it was announced that, similar to the South Korean encryption exchange Coinone, workers of Bithumb, another South Korean encryption exchange, are being investigated by authorities for allegedly accepting money to list cryptocurrencies. The Seoul Southern District Prosecutors Office’s Financial Investigation Division 2 seized and searched the office of Bithumb Holdings and the suspect Lee.

“It is impossible to say since the prosecution is conducting an investigation,” the platform official stated. Nevertheless, the prosecutor’s office’s seizure and search did not target Bithumb assets, but persons, so I’m not sure what it’s about.”

The prosecution is looking into Mr. Lee, an employee of Bithumb Holdings, the parent firm of this virtual asset exchange, for listing a specific virtual currency on the exchange for money. The Seoul Southern District Prosecutor’s Office’s Financial Investigation Division 2 (Chief Prosecutor Chae Hee-man) is claimed to have seized and searched Bithumb Holdings’ office and her aunt’s house.

According to the article, in February, the Seoul Southern District Prosecutor’s Office probed Jeon, a former Coinone employee, for allegedly taking hundreds of millions of won at the price of listing multiple cryptocurrencies released in the nation.

When the prosecution investigated Bithumb and Coinone, the industry’s second and third largest organizations, on suspicions of unlawful listing, other virtual asset exchanges were also placed on high alert. This is due to the fact that in the virtual asset market, controversy over so-called unlawful listing, which lists virtual currencies for money, has not abated in the past, and new issues may develop as a result of the prosecution’s probe.

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