The largest cryptocurrency exchange of South Korea, Bithumb, has reportedly been investigated by the country’s police.
A local news outlet in South Korea, Seoul Shinmun, recently published a report stating that on September 02, the intelligence crime unit at the Seoul Metropolitan Police Agency raided Bithumb’s office, which is located in the Gangnam District of the country.
Bithumb Reportedly Involved In High Scale Fraud
As per the report, the police would also investigate all the latest checks related to the crypto exchange.
Further, it has been stated that the chairman of the board at Bithumb Korea, Lee Jung Hoon, and Bithumb Holdings are also part of this investigation.
According to the report, currently, the executive of the company is being questioned regarding the economic fraud, by the Seoul Metropolitan Police Agency’s team. It has been alleged that the Bithumb introduced its native token BXA for trading. But later, people got to know that token was a part of high scale fraud which raised around $25 million from the investors and caused the damage.
Currently, Bithumb has not responded to this investigation matter.
Earlier in June, it was reported that the world’s ninth-largest crypto exchange by average daily trading volume was planning to take the initial public offerings (IPO).
Coinbit Under Investigation
The report mentioned that the exchange used the Samsung Securities as its underwriter to introduce its IPO in the stock market. However, it faced so many problems and one of the main was the crypto taxation issue.
Apart from Bithumb, the Seoul Metropolitan Police Agency has also been investigating the third-largest crypto exchange of South Korea, Coinbit.
The report has suggested that recently, the exchange generated a revenue of $85 million which allegedly happened because of market manipulation.
Additionally, it has been reported that Coinbit has been using a ghost account, which helped it in increasing the trading volume of the exchange.
The report also claimed that 99 percent of exchange trading volume was manipulated.