Bithumb Got Raided By South Korean Police, Cryptos Face Huge Dip

Bithumb got raided by the South Korean police and after they were done, top cryptocurrencies such as Bitcoin and Ethereum faced a huge dip as we are reading further in the blockchain news.

After the fifth biggest exchange Bithumb got raided, major cryptocurrencies faced crashes including Bitcoin and Ethereum. 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. The bitcoin exchange was operational still at the time of writing and it has already pulled $12 million of the number one cryptocurrency from external wallets.

The well-known and the biggest South Korean cryptocurrency exchange, Bithumb filed a complaint with the Tax Tribunal against the National Tax Service (NTS). The crypto exchange company wants the Tribunal to nullify a tax for nearly $69.3 million, which was imposed by the National Tax Service (NTS) on Bithumb’s customers. At the end of 2019, the National Tax Service (NTS) imposed $69.3 million of withholding tax on the customers of Bithumb according to a certain report. Then this was the first case where the South Korean authorities had taxed crypto transactions.

In November of 2019, the biggest shareholders of the exchange reached an agreement to buy a 34.24% stake in Bithumb from the holding company Bithumb Holdings, after which he made a decision to sue them after information came out in December of 2019 that the exchange had been served a whopping USD 67 million tax bill. South Korean tax authorities made for the first time decision to tax transactions carried out by the foreign customers of Bithumb, giving the bill to Bithumb, instead of the customers of the exchange.