South Korea raids Bithumb amid ex-CEO’s alleged $2M embezzlement

South Korean prosecutors raided crypto speech Bithumb pursuing suspicions that its erstwhile CEO embezzled funds to acquisition an apartment. 

On March 20, Seoul’s Southern District Prosecutors Office reportedly searched Bithumbs offices successful the country.

The probe centered astir allegations that the crypto speech gave a 3 cardinal Korean won (over $2 million) flat lease deposit to Kim Dae-sik, its erstwhile CEO and committee member, who present works arsenic an advisor to the firm. 

Prosecutors raised concerns implicit imaginable fiscal misconduct wrong the company, suspecting that Kim utilized immoderate of the funds to acquisition a idiosyncratic apartment.

Bithumb says its erstwhile CEO repaid the funds

Local media outlet YTN reported that the country’s Financial Supervisory Service (FSS) had antecedently investigated the suspicions and handed their findings to the prosecutor’s office. 

In an interrogation with The Chosun Daily, a Bithumb typical said immoderate of the allegations are true.

The speech said the enforcement took a indebtedness from a lender instantly aft the FSS investigation. After this, Bithumb said Kim repaid the funds spent connected the flat acquisition successful full. 

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Bithumb faces probe amid IPO push

The probe comes arsenic the crypto speech attempts different propulsion to spell public. On March 18, the Business Post reported that Bithumb CEO Lee Jae-won is expediting the process of the company’s long-awaited archetypal nationalist offering (IPO). 

The study said the institution has reorganized to destruct judicial risks connected large shareholders.

In 2021, Bithumb’s erstwhile committee of directors chairman, Lee Jeong-hoon, was indicted connected alleged fraud charges. As South Korea’s Supreme Court acquitted the Bithumb executive, the speech is expected to velocity up its IPO successful 2025. 

Bithumb’s IPO plans day backmost to 2020 erstwhile section media reported that the speech level had been preparing for a banal marketplace launch.

However, the institution faced obstacles that prevented it from successfully conducting an IPO. In 2023, the institution chose an underwriter for its IPO plans, reigniting the chatter it’s working connected conducting an IPO. 

In 2024, the rumors were confirmed arsenic Bithumb Korea set up a non-exchange business to accelerate its debut connected the banal market. However, the quality was paired with a 57% nonaccomplishment successful yearly gross for the speech relation successful the fiscal twelvemonth 2023. 

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