- Kang Jong-hyun, the founder of Bithumb, was arrested in South Korea for embezzlement.
- According to journalist Park, Kang is alleged of colluding with the firm’s associates to steal 60 million won.
- Kang Ji-yeon denies allegations against his brother.
The founder of the Bithumb cryptocurrency exchange, Kang Jong-hyun, has been apprehended on suspicion of embezzlement in his own country. Local officials conducted an investigation and made the arrest after determining that the defendant was likely guilty of misappropriating corporate cash.
According to sources, the detention was conducted in Seoul this morning after an arrest warrant was issued by the Seoul Southern District Court. The subject is currently being held by police.
According to South Korean journalist Park Min-gyu, Kang Jong-hyun is alleged of colluding with three other business associates to embezzle at least 60 million won. These unlawful gains were made possible via stock manipulation and the issuance of convertible bonds.
The detainee’s younger brother, Kang Ji-yeon, is also under suspicion of involvement in Jong-hyun’s illegal activities, as per the prosecutors. For the prosecution, Kang Ji-yeon’s position as CEO of Bithumb subsidiary Inbiogen makes him a key target.
However, Kang Ji-yeon apologized to shareholders and executives on the Bucket Studio website for familial mishaps. He said his brother’s charges were unfounded, and he would help law enforcement with their probe.
<blockquote> ”Most of the suspicions surrounding my older brother Kang Jong-hyun, which have been reported through various media and media, are one-sided claims without fact-checking, so the truth will be revealed during the investigation.” CEO Kang Ji-hyeon said. </blockquote>
Nonetheless, it should be noted that this is not the first time Bithumb has clashed with the South Korean authorities. It was revealed earlier this month that the National Tax Service of South Korea had started an inquiry into potential tax evasion at Bithumb and its affiliates.