Prosecutors Raid Bithumb Over Alleged Misuse of Executive Housing Funds
Summary
- Prosecutors carried out a search and seizure operation tied to allegations that current and former executives at South Korean cryptocurrency exchange Bithumb misused company housing support funds for personal purposes.
- Bithumb is accused of providing a total of $8.3 million in company housing to four current and former executives, with some allegedly using lease deposits for personal purposes.
- Prosecutors began a search and seizure of Bithumb's headquarters to verify additional facts related to some of the allegations raised by the Financial Supervisory Service.
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Prosecutors have raided Bithumb over allegations that current and former executives at the South Korean cryptocurrency exchange misused company housing support funds for personal purposes.
According to legal industry sources on October 29, the major crimes unit at the Seoul Southern District Prosecutors' Office began a search and seizure of Bithumb's headquarters in Seoul's Gangnam district earlier that day.
The raid is an additional compulsory investigation into allegations first identified by the Financial Supervisory Service last year involving the private misuse of housing support funds by current and former Bithumb executives.
Bithumb is accused of providing company housing worth a total of 11.6 billion won ($8.3 million) to four current and former executives, with some allegedly using lease deposits for personal purposes. The Financial Supervisory Service filed a complaint against Bithumb with prosecutors in March last year.
Prosecutors launched the raid to verify additional facts related to some of the issues raised by the Financial Supervisory Service, according to the sources.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul