Bithumb Crimes fraud Government police South Korea tokens

Police summon Bithumb chairman for questioning over alleged fraud



The drama over alleged fraud involving Bithumb’s senior executives continues as the company’s chairman has reportedly been summoned for interrogation.

The Seoul Metropolitan Police Agency is purportedly seeking to question Lee Jung-hoon, chairman of board at Bithumb Korea and Bithumb Holdings, according to a Sept. 18 report by South Korea’s state-run news agency Yonhap.

As reported, Lee is allegedly accused of multiple fraud and embezzlement offenses regarding the failed listing of the BXA token. The purported fraud caused investor damages of up to 30 billion won ($25 million), the report notes. The police are also reportedly looking to question Lee over alleged embezzlement of investors’ funds in overseas property purchases or offshore investments.

According to Yonhap, Kim Byung-gun, another chairman at Bithumb, is accused of being involved in the BXA fraud alongside Lee. However, the police have not yet initiated an investigation against Kim.

The latest news comes shortly after Seoul police reportedly seized a number of shares in Bithumb Holdings belonging to Lee. The exec reportedly failed to acquire Bithumb, and has been sued in the process.

As reported by Cointelegraph, local police conducted two raids on Bithumb’s offices in connection to the alleged fraud in September.

Bithumb has not responded to any of Cointelegraph’s requests for comment. 



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