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Local Authorities Summon Bithumb Chairman Of The Board Over Alleged Fraud

Bithumb’s situation worsens as South Korean authorities have reportedly summoned company Chairman Lee Junh-hoon for alleged fraud regarding the sale of BXA tokens. This comes days after local police raided the exchange for the third time in less than a month.

Three Police Raids For Bithumb In September

September turns out to be a rather unpleasant month for the popular South Korea-based cryptocurrency exchange. As CryptoPotato reported earlier this month, the Intelligent Crime Investigation Unit of the Seoul Police raided the company’s headquarters under allegations for fraud.

Authorities alleged that the exchange sold its native BXA tokens to investors for over $25 million. Bithumb planned to list the token on its platform but reportedly failed to, resulting in a massive loss for investors.

Just five days after the first raid, the police conducted another one on September 7th. A police official purportedly said that authorities aim to secure additional evidence related to already existing allegations against Bithumb Korea and Bithumb Holdings Chairman of the Board – Lee Jung-hoon.

The plot thickened earlier this week when the Seoul Metropolitan Police Agency (SMPA) raided the exchange’s headquarters once again. This time, however, authorities took it a step further. They seized dozens of shares in Bithumb Holdings belonging to Bithumb Korea Director Kim Byung-Gun after receiving approval from the Seoul Central District Court.

Bithumb Chairman Summoned By Local Authorities

Earlier today, the state-run agency Yonhap reported that the SMPA had “summoned” Lee Junh-hoon. Apart from being the Chairman of the Board of Directors of Bithumb Holdings and Bithumb Korea, he is also the beneficial owner of Bithumb.

The report highlighted that BXA coin investors had sued both Lee Junh-hoon and Kim Byong-Gun for the financial losses suffered from the token sale. The authorities have also accused Junh-hoon of violating the Act on Aggravated Punishment for Specific Economic Crimes by fleeing South Korea.

Interestingly, while the investigation against Junh-hoon is ongoing, authorities haven’t conducted one against BK Group Chairman Kim Byung-Gun, despite both being accused of the alleged fraud.

The post Local Authorities Summon Bithumb Chairman Of The Board Over Alleged Fraud appeared first on CryptoPotato.

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