Seoul Prosecutors Issue Arrest Warrant for Kang Jong-hyeon: Report

1. Seoul prosecutors have issued an arrest warrant for Bithumb’s founder.
2. Kang Jong-Hyeon and two others have been charged with embezzlement and breach of trust.
3. The prosecutor has taken the facts surrounding Mr. Kang’s theft of corporate funds as evidence.

A recent tweet by one of the most credible media agencies, CryptoNewsLand (CNL), claims that prosecutors in Seoul, South Korea’s capital city, have granted an arrest warrant for the actual owner of the cryptocurrency exchange Bithumb.

Read CRYPTONEWSLAND on google news

Prosecutor-in-Chief Chae Hee-man has filed accusations against the defendants for fraudulent unlawful transactions under the Capital Markets Act and for manipulating the stock prices of multiple related firms under the Act on the Aggravated Punishment of Specific Economic Crimes. A warrant for his arrest was asked for.

Two of the affiliate companies involved in the case are Inbiogen and Bucket Studio, suprisingly both of the two firms have Kang Ji-Yeon who happens to be the younger brother of Kang Jong-hyeon is the CEO of the two companies.

According  local media sources, Kang Ji-Yeon is also accused of participating and being part in the process by which the stock prices of Inbiogen and Bucket Studio were manipulated via the issuance of convertible bonds. This technique was carried out in order to gain an unfair advantage.

In October 2022, an investigation was opened into the activities of Bithumb’s subsidiary Vidente, which had the highest number of outstanding shares at the time. During the time when Vidente was the subject of an inquiry, the vice president of the firm took his own life.

The inquiry has moved forward because of the linked nature of the firms that have been cited so far. Vidente is the largest investor in Bithumb, holding a stake worth 34.2% of the company. Bucket Studio, which is also the largest stakeholder in Inbiogen, is the source of the wealth of both Vidente and Inbiogen. Bucket Studio is also the company’s namesake.

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