Police reportedly seized South Korea’s largest crypto exchange, Bithumb. According to the information obtained from The Block, it was learned that the Seoul Metropolitan Police Service has raided South Korea’s largest crypto exchange Bithumb with allegations of fraud.
Seoul Shinmun, South Korea’s oldest newspaper, reported that Bithumb’s offices were raided today. The exchange has been accused of pre-selling local BXA tokens worth about 30 billion won (~ $ 25 million) to investors and then failing to list the token that allegedly harmed investors.
Caused by the BXA Token
The token, which attracted investors’ attention, was sold for $ 25 million after Bithumb took action to buy Singapore-based BK Group in the past and pre-sold a token named BXA before the deal. But later the agreement between these two companies could not be completed and BXA was not listed on the stock exchange.
Unfortunately, South Korean cryptocurrency exchanges seem to be having trouble lately. Last week, the Seoul Metropolitan Police Department raided the Coinbit exchange for allegedly inflating about 99% of trade volumes, resulting in an “unfair profit” of about $ 84 million for the exchange and its team.