Seoul Police Take Action Against Bithumb Amid Fraud Investigation

Estimated read time 2 min read

A Shocking Turn of Events

It seems the cryptocurrency world never runs out of surprises, and Seoul’s police department is ready to throw another curveball. On September 2, officers from the Seoul Metropolitan Police Agency carried out a raid on Bithumb, South Korea’s largest cryptocurrency exchange, located in the bustling Gangnam District. You might want to get your popcorn for this one!

The Investigation Unfolds

According to local media, the raid is linked to a serious investigation into Lee Jung Hoon, the chairman of Bithumb Korea and Bithumb Holdings. He stands accused of economic fraud related to the BXA token—a digital currency that was supposed to shine but instead seems to have dimmed many investors’ portfolios.

BXA: The Token That Turned Sour

What’s the kicker? The BXA token, heavily marketed as Bithumb’s native token, is now at the center of a whirlwind of allegations. As reported, it was claimed to have caused a staggering 30 billion won (that’s around $25 million) in investment losses. Talk about a rough ride for investors who thought they were riding on the crypto gold rush!

What Are the Implications?

While Bithumb has dodged reporters’ attempts for comment, the implications of this investigation could ripple through the entire crypto market. With the exchange being a heavyweight in the industry—ranked ninth globally by average daily trading volume—the fallout could be significant. Is this the beginning of a domino effect?

A Broader Crackdown?

But wait, there’s more! Bithumb isn’t the only exchange feeling the heat from the Seoul police. Just last month, the police also raided Coinbit, South Korea’s third-largest crypto platform, allegedly linked to a whopping $85 million in market manipulation. Is there a new trend in South Korea’s crypto landscape? Raid or be raided?

You May Also Like

More From Author

+ There are no comments

Add yours