Replace March 20, 10:50 am UTC: This text has been up to date so as to add a Wu Blockchain report on Bithumb listings, claiming that a number of crypto tasks paid middleman charges to have their tokens listed.
South Korean prosecutors raided crypto trade Bithumb following suspicions that its former CEO embezzled funds to buy an condo.
On March 20, Seoul’s Southern District Prosecutors’ Workplace reportedly searched Bithumb’s workplaces within the nation.
The investigation centered round allegations that the crypto trade gave a 3 billion Korean gained (over $2 million) condo lease deposit to Kim Dae-sik, its former CEO and board member, who now works as an adviser to the agency.
Prosecutors raised considerations over potential monetary misconduct inside the firm, suspecting that Kim used a number of the funds to buy a private condo.
Bithumb says its former CEO repaid the funds
Native media outlet YTN reported that the nation’s Monetary Supervisory Service (FSS) had beforehand investigated the suspicions and handed their findings to the prosecutor’s workplace.
In an interview with The Chosun Every day, a Bithumb consultant said a number of the allegations are true.
The trade mentioned the manager took a mortgage from a lender instantly after the FSS investigation. After this, Bithumb mentioned Kim repaid the funds spent on the condo buy in full.
Other than the condo, rumors that tasks paid middleman charges to get listed in Bithumb additionally circulated on-line. Citing nameless sources, Wu Blockchain reported on March 20 that two tasks claimed to have paid $2 million and $10 million, respectively, to get listed on Bithumb and Upbit.
The report claimed that the “intermediaries” had been associated to Upbit’s shareholders and market makers. Wu Blockchain additionally mentioned that some middleman charges ranged from 3% to five% of whole token provides.
Associated: Wemix denies cover-up amid delayed $6.2M bridge hack announcement
Bithumb faces probe amid IPO push
The investigation comes because the crypto trade makes an attempt one other push to go public. On March 18, the Enterprise Put up reported that Bithumb CEO Lee Jae-won is expediting the method of the corporate’s long-awaited preliminary public providing (IPO).
The report mentioned the corporate has reorganized to remove judicial dangers on main shareholders.
In 2021, Bithumb’s former board of administrators chairman, Lee Jeong-hoon, was indicted on alleged fraud prices. As South Korea’s Supreme Courtroom acquitted the Bithumb govt, the trade is anticipated to hurry up its IPO in 2025.
Bithumb’s IPO plans date again to 2020 when native media reported that the trade platform had been preparing for a stock market launch.
Nonetheless, the corporate confronted obstacles that prevented it from efficiently conducting an IPO. In 2023, the corporate selected an underwriter for its IPO plans, reigniting the chatter it’s working on conducting an IPO.
In 2024, the rumors had been confirmed as Bithumb Korea set up a non-exchange business to speed up its debut on the inventory market. Nonetheless, the information was paired with a 57% loss in annual income for the trade operator within the fiscal yr 2023.
Journal: Ridiculous ‘Chinese Mint’ crypto scam, Japan dives into stablecoins: Asia Express
