Prosecutors in Seoul Issue Arrest Warrant for Bithumb Owner

Kang Jong-Hyeon along with two others charged with embezzlement and breach of trust.

A warrant has been issued for the arrest of Kang Jong-Hyeon, the owner of Bithumb, South Korea’s largest crypto exchange. Kang has been accused of fraud, based on his involvement in the manipulation of stock prices of several companies affiliated with Bithumb.

According to local media reports, Kang along with two other executives of Bithumb affiliates was charged by the Seoul Southern District Prosecutor’s Office Financial Investigation Division over embezzlement and a breach of trust. These charges fall under the Act on the Aggravated Punishment of Specific Economic Crimes and fraudulent illegal transactions under the Capital Markets Act.

Two of the affiliate companies involved in the case are Inbiogen and Bucket Studio, both affiliates have Kang’s younger brother, Kang Ji-Yeon as the CEO. He is also suspected to be involved in the process where stock prices of Inbiogen and Bucket Studio were manipulated through the issuance of convertible bonds.

Bithumb’s largest shareholder, Vidente, was also linked to the case with investigations initiated against the affiliate in October 2022. During the investigation, the Vice President of Vidente committed suicide.

Investigations have continued as all the mentioned companies are intertwined. Vidente holds a 34.2% stake in Bithumb, qualifying as the largest shareholder. Vidente’s largest shareholder is Inbiogen, while Inbiogen’s largest shareholder is Bucket Studio.