Police from Seoul, South Korea, have reportedly raided South Korea's largest cryptocurrency exchange, Bithumb.
Ongoing research
For example, according to a publication in Seoul Shinmun, a local newsman, the police entered the office at Bithumb and subsequently carried out search and seizure investigations. Although these appear to be regular checks, they may be associated with an ongoing police investigation into Jee Jung Hoon. Mr. Hoon is the Chairman of the Board of Directors at Bithumb Korea and he is also involved with Bithumb Holdings.
Hoon is currently under investigation for alleged economic fraud involving the token "Blockchain Exchange Alliance", or BXA for short.
Thus, this token would have been promoted as the original Bithumb token. However, this never turned out to be the case and the token was eventually even involved in a large-scale form of fraud. This fraud is said to have looted approximately $ 25 million (€ 21 million).
Not the only one under police fire
The police raid has not yet been confirmed by Bithumb himself. Bithumb has managed to create a big name for itself; the cryptocurrency is the largest South Korean exchange and currently ranks number 9 in the world when looking at daily average trading volume. The cryptocurrency exchange is looking at the possibilities for an IPO, possibly at the end of this year.
In August, Seoul police reportedly raided another South Korean cryptocurrency exchange: Coinbit. This is the second largest cryptocurrency exchange operating in the country. The reason for this raid was that the exchange was reportedly involved in generating $ 85 million (well over $ 71 million) in additional revenue by conducting market manipulation. The latter has not yet been confirmed. With this, Bithumb is not the only one who has come under fire from the police. Several investigations are currently underway at various cryptocurrency exchanges in the country, possibly to get a better picture of the cryptocurrency activities in the country.
