Bithumb Executive Faces Investigation Over Crypto Listing Bribery Allegations

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South Korean prosecutors are investigating Lee Sang-jun, chief executive of local cryptocurrency exchange holding company Bithumbs, for alleged bribery in the listing of certain cryptocurrencies on the platform, the office said. Seoul South District prosecutors.

See related article: South Korea Arrests Chief of Crypto Exchange Bithumb for Alleged Embezzlement

Quick FactsSeoul Southern District prosecutors raided Bithumb Holdings and Lee’s private residence earlier this month, the prosecutor’s office said in a text message to Forkast on Monday. The bureau declined to give further details about the investigation, such as when the raid took place and Lee’s whereabouts. The investigation adds to the list of charges against Bithumb executives. A former employee of Coinone, the country’s third-largest crypto exchange by trading volume, is also being investigated for allegedly accepting bribes to list specific cryptocurrencies, prosecutors said in the text message. . The bureau declined to give the people’s full names, citing South Korean privacy laws. A Coinone spokesperson confirmed the inquiry to Forkast via text message Monday, though declined to comment further. Bithumb has yet to respond to Forkasts’ text message request for comment Monday morning. Local news outlet Chosun Biz reported that prosecutors had evidence that other local exchanges such as Upbit, Korbit, and Gopax allegedly illegally listed some crypto tokens, without giving a South Korean court set to hold the de facto owner’s first trial on Wednesday. of Bithumbs, Kang Jong-hyun, according to local news agency News1. Kang and two other executives of companies affiliated with Bithumb face charges of embezzlement, fraudulent transactions and dereliction of duty. The three admitted the charges, according to local media Donga Ilbo. Kang’s younger sister, Kang Ji-yeon, who heads a number of companies that together hold the largest stake in Bithumb, also faces charges of manipulating Bithumb’s share price with false information. . In a statement posted on the Bithumb-affiliated Bucket Studios website, which has since been removed, Kang Ji-yeon said the charges against her brother were unconfirmed and one-sided. South Korea is developing a regulatory framework for the country’s digital asset industry, which is expected to include clearer guidelines for the listing and delisting of crypto tokens on exchanges.

See Related Article: More Bad News For South Korea’s Bithumb Exchange With Kimchi Coin Manipulation Allegations

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