Policy, Bithumb, South Korea Investigation facilities on claims that Bithumb helped a former CEO finance an residence 

Prosecutors in South Korea have launched an investigation into Bithumb, one of many nation’s largest cryptocurrency exchanges, over claims that firm funds have been improperly used to help a former government in buying an residence.

Officials from the Seoul Southern District Prosecutors’ Office raided Bithumb’s headquarters in Yeoksam-dong and different places on Wednesday., in response to native media report.

Wu Blockchain reported that some projects had paid as much as $10 million in charges to record their tokens on Upbit and Bithumb.

The probe focuses on allegations that Bithumb supplied a 3 billion KRW ($2 million) safety deposit for an residence rental in Seongsu-dong, Seoul, for Kim Dae-sik, the corporate’s former CEO and present advisor.

The Financial Supervisory Service, South Korea’s monetary regulator, initially reviewed the case earlier than forwarding it to prosecutors. Speaking to The Chosun Daily, a Bithumb spokesperson reportedly acknowledged a number of the allegations have been appropriate, including Kim repaid the loaned quantity in its total after securing a mortgage.

Bithumb has confronted a number of authorized challenges in recent times, including tax probes and a raid associated to a price manipulation probe. Its newest problem comes because the agency was reported to be contemplating listing shares on the Nasdaq.

Bithumb was not instantly accessible for remark when contacted by CoinDesk.

Disclaimer: Information gathered for this text was translated with using synthetic intelligence.

UPDATE (March 20, 12:33 UTC): Adds further particulars and background.

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