It is reported that the police, who recently raided the head office of the major crypto currency exchange Bithumb, carried out a second raid as of yesterday.
It is reported that the police conducted an operation for the second time against South Korea-based Bithumb, one of the world’s largest crypto exchanges. According to local news sources, two offices, including the headquarters in Gangnam, were raided yesterday. An operation was also held on the head office on September 2.
Allegations of fraud and embezzlement
Security units confirmed that the raids were conducted to obtain additional evidence regarding the allegations made. The stock market is being investigated for allegations of fraud and embezzlement.
As will be remembered, a group of investors petitioned the police in December and complained about Bithumb Holdings chairman Lee Jung-hoon and Bithumb Korea chairman Kim Byung-gun on the grounds that the coin named BXA was promised to be listed on the stock market, but this issue was also cheating. was found and requested an investigation.
Didn’t list the token
Investors claimed that they lost thousands of dollars in funding in 2018 on the issue. The value of the token also fell sharply, and when the listing of BXA did not materialize and promises were not kept, investors had almost nothing left.
Front company played a critical role
It was stated in the South Korean media that a front company in the British Virgin Islands may have played a critical role in this situation. Two managers Lee and Kim blamed each other for the BXA token fiasco.
The BXA token was the flagship cryptocurrency of the Singapore-based exchange, which accepted enough stock purchase in 2018 to gain control but did not pay later. South Korean media claim that $ 25.3 million was made from the sale of BXA tokens, but Lee and Kim embezzled this money.
Founded in 2014, Bithumb is one of South Korea’s two largest stock exchanges. The platform seems to have reached more than $ 250 million in transaction volume in the past 24 hours. The stock market used to be a frequent target of hackers. Bithumb also has a global platform operating under the brand “Bithumb Global”.