As per the September 2, 2020, report of the Seoul Shinmun, Korean authorities conducted a thorough raid on the biggest crypto exchange in the country, Bithumb – specifically, their headquarters located on central Gangnam.
The seizure of Bithumb is apparently driven by fraud accusations regarding the $25M token auction hosted by the exchange two years prior, as well as the failed acquisition of the company by the Singapore-based platform, BK Global. These two specific instances purportedly led to several investors hemorrhaging loads of money.
According to the report, Lee Jung Hoon, Bithumb Korea’s chairman, has also been arrested simultaneously as the raid. The Korean authorities reportedly apprehended Hoon for his attempts to transfer considerable amounts of unreported monetary assets overseas. Bithumb as a corporation is still declining to provide further insight or comments about the situation as of press time.
Korean crypto crackdowns
Just a week before, the Korean police have also successfully seized Coinbit. The third-largest crypto firm in Korea has been accused of fabricating most of its reported trading volumes.
These recent raids on some of the country’s most prominent crypto exchanges are seen by many as the result of the stricter laws regarding cryptocurrency businesses based in Korea.