South Korean prosecutor seizes largest shareholder of Bithumb in misappropriation funds investigation

02/22/2023 08:59 • Crypto & Markets • 95 views

It is reported that this morning, the South Korean prosecutor seized and searched Vidente, the largest shareholder of Bithumb (holding 34.22% of Bithumb’s shares), in the investigation of Bithumb-related companies suspected of misappropriating funds.

The South Korean prosecutor has formally sued Jiang Jong-hyun and detained and searched Vidente, the largest shareholder of Bithumb

Interpretation of the news:

The South Korean prosecutor has seized and searched the largest shareholder of Bithumb, Vidente, as part of the investigation into Bithumb- related companies over alleged fund misappropriation. The prosecutor is handling multiple allegations that Bithumb’s management misused a significant portion of the funds that belong to its clients for individual interests. This operation is part of a wider investigation into Bithumb and its related companies to establish the extent of any wrongdoing.

Bithumb is one of the biggest cryptocurrency exchanges in South Korea, and Vidente is its largest shareholder. Vidente is a publicly traded firm that deals in IT technologies and media content. Last year, it acquired Bithumb’s controlling stake and reportedly sought to enhance the exchange’s security and capabilities by injecting Bithumb with additional capital. According to the authorities, the investigation into Bithumb began after clients reported losses due to fraud or illicit transfer of funds.

This investigation is another example of South Korea’s campaign to strengthen its regulatory regime for the cryptocurrency market. The government has been working towards enforcing stronger rules on cryptocurrency exchanges since the boom of 2017 to 2018, which led to a surge of retail traders and investors rushing to invest in digital assets despite the increased risk. In response, the government has sought to strengthen transparency and accountability within the industry, especially regarding AML/KYC regulations and taxation.

The seizure of Vidente’s assets serves as a warning to the cryptocurrency industry in South Korea to uphold their fiduciary duties towards customers and prevent illegal activities like money laundering and embezzlement. It also signals that South Korea’s regulatory bodies are keeping a close eye on the industry and are ready to take action against any wrongdoing.

In conclusion, the seizure of Vidente by the South Korean prosecutor shows the country’s determination to investigate any wrongdoing in the cryptocurrency industry fully. The operation serves as a warning to other cryptocurrency exchanges to operate transparently and honestly to protect their customers’ interests. As South Korea continues to strengthen its regulatory framework for the digital asset industry, it will be crucial for businesses to comply with the new rules and regulations to avoid being targeted by authorities.

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