• South Korean police have resumed their investigation into the Bithumb Fraud Case

  • It appears that Bithumb’s problems are not going away anytime soon! The South Korean police reopened an investigation into the Bithumb fraud case involving the exchange’s former chairman on Monday, August 2.

    The news comes just a month after top Bithumb executives were indicted by Hong Kong regulators in a fraud case in July. Following this, however, a group of 14 investors filed their second fraud case. The Seoul Metropolitan Police Agency has begun an investigation into Bithumb’s former chairman, Lee Jung-hoon.

    Kim Byung-gun, the chairman of BK Group, has also been linked to the fraud case and is now being investigated. According to the publication:

    According to the complaint, the investors offered 718 bitcoins and 7,793 Ethereum to Kim in October 2018 for 6.92 billion won ($6.01 million) after he vowed to take over Bithumb Korea and said an unlisted coin called BXA would be issued and listed.

    Bithumb Korea Takeover Promises Fail

    Kim’s promises to investors and the media appear to have fallen flat. The takeover of Bithumb Koran never happened because the investors’ money was diverted to Lee. The investors also claimed that Kim and Lee were complicit in this matter.

    Bithumb Korea’s sale was originally scheduled for September 2019. According to reports, Kim made a $100 million payment to Lee but did not pay the balance. Furthermore, the BXA listing did not take place as planned, resulting in massive losses for investors.

    Following investor complaints, South Korean police conducted a similar investigation last year. As previously stated, Lee was indicted by the Seoul Police Department last month for defrauding Kim of $1 billion.

    With the most recent filing, the group of 14 investors has provided the police with additional evidence involving recordings. Regulators all over the world have taken a tough stance and have begun to investigate suspicious transactions. The global regulatory landscape for cryptocurrencies is changing.

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