The "Real" Owner of Bithumb is wanted for prosecution on theft-related charges.

The “Real” Owner of Bithumb is wanted for prosecution on theft-related charges.

Charges against the Kang siblings include theft, betrayal of trust, and market manipulation. As reported by the South Korean financial outlet InfoMax, several officials at the cryptocurrency exchange Bithumb are currently facing accusations of theft and price manipulation.

An investigation warrant has been obtained for Kang Jong-hyeon, who is said to be the “true owner of Bithumb,” based on such allegations.

Executives at Bithumb are under criticism

Legal experts verified on Wednesday that Kang and two Bithumb officials had received sentences for embezzlement and breach of confidence from the Seoul Southern District Prosecutor's Office. A Capital Markets Act accusation of fraudulent illegal activities has also been brought against them.

Kang Ji-yeon, the younger sister of Kang, is in charge of several Bithumb subsidiaries, including Inbiogen and Bucket Studio, which specialize in distribution and footwear, respectively. By issuing convertible notes, the former is thought to have fraudulently boosted the share prices of both businesses.

Vidente is the only largest stakeholder of Bithumb, Inbiogen is the majority owner of Vidente, and Bucket Studio is the biggest shareholder of Inbiogen. Each equity asset was linked to each other.

Bithumb's Numerous Problems

The prosecution's office spent months looking into Bithumb about an alleged $70 million fraud committed by former chairman Lee Jung-hoon. Jung-hoon, who was accused in October, was declared innocent earlier this month.

The prosecution's office reopened its investigation into Bithumb two weeks ago to determine whether Kang had broken any domestic tax rules, along with a look into his sibling's actions.

Late last month, the body of Park Mo, the vice president of Vidente, was discovered in Seoul. Suicide, according to some accounts, could have been the cause of death. As VP of Vidente, Park was alleged to have been in charge of the Kang siblings' accounts. There were rumors going around at the time that Park had been falsely accused of embezzlement and market manipulation by the Kang siblings.

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