Crypto exchange Bithumb is under investigation as South Korean police have raided the corporate’s headquarters. This motion is in response to claims of embezzlement directed against Kim Dae-sik, the previous chief executive officer. The inquiry generally focuses on a selected financial transaction involving a big sum of cash.
Allegations Center On Apartment Purchase
Based on reports, the core of the investigation revolves around an organization lease deposit amounting to $2 million. Prosecutors are looking into claims that Kim Dae-sik allegedly used this money to buy an apartment for his personal use.
Image: Bloomberg News
Authorities are wanting to learn the specifics and legality of the financial flow, despite the fact that the precise chronology of this purported transaction just isn’t yet evident. In response to those claims, Bithumb has said that the previous CEO has already paid back all the sum in query.
The indisputable fact that the inquiry continues to be ongoing regardless of this return indicates that the prosecutors plan to look closely on the facts underlying the unique usage of the company funds.
Bithumb Pursues Public Listing Amid Investigation
This investigation comes at an important time for Bithumb because the cryptocurrency exchange is actively working towards one other try and change into a publicly traded company. Lee Jae-won, the present CEO of Bithumb, is reportedly pushing forward with the Initial Public Offering (IPO) process.
This move to go public just isn’t a latest endeavor for Bithumb. The corporate’s ambitions to list on the stock market date back to 2020. Nevertheless, previous attempts have been met with various challenges, stopping the successful completion of the IPO.
Past Challenges Hinder Previous IPO Attempts
An enormous barrier in Bithumb’s past public appearances was the alleged fraud charges directed against its former chairman. The newest legal hurdles have clearly blocked the flow and distorted its path towards a public listing.
The continued embezzlement investigation on the previous CEO throws off Bithumb’s present activities. The consequence of this latest legal motion on the corporate’s revived ambitions for an IPO and its position within the South Korean bitcoin market is yet unknown.
The outcomes of the research may need significant effects on Bithumb’s popularity amongst investors and future possibilities. South Korean bitcoin industry is closely observing the event of this lawsuit.
Featured image from Gemini Imagen, chart from TradingView
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