Bithumb's Seoul office has been the latest case of worldwide crypto crackdowns. National Police and Prosecutor's Office recently raided the exchange in connection with "Kimchi Coin" price manipulation. It was alleged that the exchange manipulated two cryptocurrencies, GoMoney2 and PixelCoin.
"Kimchi Coins" are locally issued cryptocurrencies nicknamed after a famous vegetable pickle in Korean cuisine.
Bithumb was raided by the South Korean authorities because of allegations of manipulating cryptocurrency prices. South Korean District Prosecutor(of Gangnam-gu area) was also said to be involved in the raids. The Prosecutor's office said that the search and seizure were related to a specific crypto transaction, and, there, it was not intended against the crypto exchange.
The GoMoney2 cryptocurrency is an Ethereum-based cryptocurrency currently trading at $0.004. It has recently surged in price from $0.003 after a broad market rally in cryptocurrencies. GoMoney2 witnessed an 8% price surge in the last seven days. It is still being traded on the exchange and has not been halted or paused.
Interestingly, Pixel Coin was never listed on the cryptocurrency exchange.
South Korea also proposed new laws against crypto price manipulations in Nov 2022.
Reportedly, the police also allegedly requested the arrest of the Chairman of Bithumb, Kang Jon-hyun, in connection to another case where he was accused of being involved in fraudulent transactions and embezzlement of funds.
His sister, Kang Ji-yeon is the CEO of two Bithumb-affiliated companies, Inbiogen and Bucket Studio. Inbiogen holds a stake in Vidente, the largest shareholder in Bithumb Holdings. She was also investigated earlier this month on allegations of stock price manipulation.
Bithumb was raided in Sept 2020 on allegations of price manipulation and investment fraud against its Chairman. The case was linked to a $25 Million token sale and a failed acquisition by Singapore-based BTHMB Holdings Pte Ltd. Some investors claimed to have lost millions after participating in the token sale of BXA. The tokens were sold for 150-300 Korean Won($0.12-0.25).
Also, Bithumb is the second largest crypto exchange in South Korea. It has an average 24-hour trading volume of more than $375 Million. The exchange supports over 180 cryptocurrencies.
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