Police Brings In BitHumb Chairman For Questioning Over Fraud

Police brings in BitHumb chairman after raiding the officers of the company, for alleged involvement in fraud as we are reading more in today’s latest crypto news. The drama came after the alleged fraud involving the Bithumb senior executive.

The Police brings in for questioning the company’s chairman Lee Jung-hoon. He was a chairman of the board at Bithumb Korea and BitHumb holdings according to a report by South Korea’s state-run Yonhap agency. As reported, Lee was accused of multiple frauds and embezzlement offenses regarding the listing of the BXA token. The fraud caused the investor damages of more than 30 billion won. The police also are going to question him for the alleged embezzlement of investors’ funds in the overseas properties purchases and offshore investments too.

According to Yonhap, Kim Byung-gun, who was also a chairman at Bithumb, is accused of being involved in the BXA fraud with Lee. The police however have not initiated an investigation against him. The latest news came after the Seoul police seized multiple shares in Bithumb Holdings that belonged to Lee. The executive failed to acquire Bithumb and was sued in the process. The local police even conducted two raids in the offices of the exchange in connection to the fraud allegations.

When Bithumb got raided by the South Korean police and after they were done, top cryptocurrencies such as Bitcoin and Ethereum faced a huge dip. Intelligence unit from the Seoul Metropolitan Police Agency raided the officers in an executive search and seizure orders based on fraud allegations. The police were looking to seize the proof of foul-lay regarding the launch of the BXA tokens.

Back in 2018, the Blockchain Exchange Alliance entered into a new deal to acquire Bithumb and they launched a fundraiser for the BXA native token based on the acquisition, thus ensuring investors that the token will earn a listing on the exchange. The deal crashed when Bithumb refused to list the token after the pre-selling $25 million to the investors and left them holding virtually nothing. Lee Jung-hoon the beneficial owner and chairman of the board at Bithumb Holdings is still under investigation for fraud and property obfuscation before the event.