The suspected real owner of South Korea’s largest cryptocurrency exchange, Bithumb, has been arrested on embezzlement charges.
Kang Jong-hyun was arrested on February 2nd on multiple charges, including dereliction of duty, market manipulation, and fraudulent transactions.
He is the elder brother of Kang Ji-yeon, the head of Bithumb affiliate Inbiogen, which holds the largest share in Vidente, the biggest shareholder of Bithumb with a 34.2% stake.
Prosecutors allege that the brothers colluded to embezzle corporate funds and manipulate stock prices.
On January 10th, the South Korean National Tax Service agency launched an investigation into Bithumb, which led to a raid on its Seoul headquarters.
The largest shareholder of Bithumb, Park Mo, was found dead in front of his home in December, and was also subject to an investigation on allegations of embezzlement and market manipulation. It is suspected that he took his own life due to the charges.
