Bithumb employee suspected of taking bribes for listing coins on the exchange

Some members of the local cryptocurrency community admit that similar investigations may be launched against other exchanges

17.03.2023 - 13:00

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What’s new? South Korean prosecutors have launched an investigation into an employee of cryptocurrency exchange Bithumb on suspicion of taking a bribe for listing several unnamed coins. This was reported by the South Korean publication Naver on March 17. An anonymous source told the media that law enforcement also has evidence of illegal listings on other local exchanges, including Upbit, Corbit and Gopax.

News on Naver's website

What else is known? According to journalists, law enforcement officers searched the office of the parent company Bithumb Holdings and the suspect's home, and seized some of his property as evidence.

Last month, a similar situation occurred with an ex-employee of the Coinone exchange; he is suspected of receiving hundreds of millions of won in exchange for listing several tokens issued in South Korea.

Rumors continue to circulate in the local community saying that prosecutors already have evidence of similar violations on other exchanges and may also be investigated.

Under South Korea's criminal code, the maximum penalty for bribery involving virtual assets is two years in prison and five years if received.

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On February 2, Bithumb's de facto owner Kang Jong-hyeon was arrested on charges of conspiring with a business partner to manipulate stock prices and stealing $48,68 million from the company.

In October 2022, former Bithumb CEO Lee Jung-hoon was accused of fraud for $70 million. It was alleged that he received these funds fraudulently from BK Group CEO Kim Ben-Gun in October 2018 during negotiations to buy the exchange.

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