The troubles at the Bithumb cryptocurrency trading platform are not likely to end soon. South Korean police have reopened the investigation into the Bithumb fraud case, which involved the former chairman of the exchange.
This news comes a month following the July scandal in Hong Kong when regulators had accused Bithumb executives. Another group of 14 investors also reported a possible crime. Seoul Metropolitan Police Agency initiated an investigation into Lee Jung Hoon, ex-President of Bithumb.
The Korean Herald reported that Kim Byung-gun (president of the BK Group) is also linked to the fraud case. He has now been investigated.
Investors claimed that they offered Kim 718 bitcoins ($6.01 million) and 7,793 Ethereum worth 6.92 billion won ($6.01million) in October 2018. This was after he had promised to takeover Bithumb Korea. He also stated that it would be issued on a coin exchange called BXA.
Kim’s promises to investors did not fulfill. Bithumb Korea’s acquisition was not completed, and the money of investors went to Lea Junghoon. Investors further claimed that Kim Lee and Lee were involved in this case.
South Korean police launched a similar investigation after investor complaints on Bithumb fraud last year. As reported, Lee was accused last month by Seoul police of deceiving Kim. It was reported to be worth as much as $1,000 million.
The 14 investors mentioned in the previous paragraph presented additional evidence, which included recordings that may have suggested fraud.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.