Bithumb Offices Raided over Token Price Manipulation
Bithumb's offices were raided on Thursday as part of an investigation related to price manipulation of a token listed on the crypto exchange.
Prosecutors are reportedly investigating transactions linked to a specific individual or entity that moved the price of the asset to make a profit. Additionally, law enforcement officials plan to examine the details of transactions on other exchanges where the token, which was not identified, was listed.
— CoinDesk (@CoinDesk) September 8, 2020
An official of the Seoul Southern District Prosecutors’ Office said:
“This is a search and seizure to secure details of transactions on a specific token and has nothing to do with Bithumb.”
The search comes at a time when the crypto exchange is also being investigated by South Korean tax authorities for tax evasion through domestic and international transactions on the platform and its affiliates.
Also under separate investigation, local media reported that Bithumb’s chairman, Kang Jong Hyun, and two other executives were charged with embezzlement, breach of trust, and fraudulent illegal transactions.
Kang also allegedly stole money belonging to the company and conspired to manipulate share prices.