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Sep 3, 2020

South Korean police raided the headquarters of South Korea’s largest exchange Bithumb

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According to a South Korean news media report, the Smart Crime Investigation Team of the Seoul Police raided Bithumb, South Korea’s largest cryptocurrency exchange.

Authorities searched the company’s headquarters on Wednesday (September 2, 2020) on charges of fraud.

Bithumb had previously pre-sold 30 billion won (25.2 million US dollars) worth of domestic BXA tokens to investors, which should have been listed on the exchange. However, according to reports, the company failed to list the token, causing huge losses to investors.

As a result, law enforcement officers rushed into the exchange headquarters, searched and confiscated the documents. In addition, it is said that Lee Jung-hoon, chairman of Bithumb, is under investigation by local authorities for alleged fraud.

South Korean authorities have recently severely cracked down on local cryptocurrency exchanges. This is the second attack on South Korean cryptocurrency exchanges in a week.

Last week, the police seized the country’s third-largest exchange, Coinbit, and accused the exchange of fraud in most of its trading volume.

According to CoinGecko, Bithumb is one of the largest cryptocurrency exchanges in South Korea, with a 24-hour trading volume of more than $365 million.

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