Bitcoin News

Police Raid South Korean Crypto Exchange Bithumb – Reports

Police in South Korea are reportedly searching the headquarters of Bithumb, the nation’s biggest crypto exchange per trading volume as part of an investigation into fraud and embezzlement.

Per Newsis and Seoul Shinmun, officers from the Seoul Metropolitan Police Agency’s Intelligence Unit raided Bithumb’s central offices in the Gangnam District of Seoul on the morning of September 2, seizing and confiscating data. The police are yet to issue a statement regarding the investigation and police are reportedly still conducting their search at the time of writing.

Both media outlets claim the investigation is related to the controversial BXA token, issued by the Blockchain Exchange Alliance (BXA) and the Singapore-based BXA Consortium – and the failed takeover of the company by a Singapore-based South Korean firm that eventually defaulted on payment.

Part of the consortium’s deal to buy the firm involved an obligation to list the BXA token on the Bithumb platform. That token has since seen its value plummet after raising some USD 25.7 million in an initial coin offering (ICO) – leaving investors in South Korea fuming.

A group of BXA investors has been trying to push ahead with a legal case against Bithumb executives Lee Jung-hoon and Kim Byung-gun.

Lee is the chairman of the board of directors of Bithumb Holdings and Bithumb Korea.

Investors claim that Bithumb is responsible for their financial losses as the firm failed to list the BXA token on the exchange despite its promises.

Newsis said it has also heard reports that police are also looking into possible violations of the country’s Foreign Exchange Transaction Act and the Capital Market Act.

Our has contacted Bithumb for comment and will update this article if and when a response is forthcoming.

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