Crypto Exchange Bithumb Undergoes Second Raid by Seoul Police

Seoul Police has reportedly raided South Korea's leading crypto exchange Bithumb as part of the investigations of the fraud.

By · Sep 9, 2020 . 5min read

Seoul Police Bithumb raid news

South Korea’s major cryptocurrency exchange Bithumb is enduring investigations by Seoul Officials concerning BXA tokens sale. According to the local news outlet, the Seoul Metropolitan Police Agency’s Intelligent Crime Investigation Unit announced that it has been seizing and searching two locations, including Bithumb headquarters in Gangnam-gu, Seoul. It has been six days since the headquarters office took action against the exchange. The first raid took place on the 2nd of September. It is the second time Police in Seoul, South Korea, has led a raid in the space of just six days.

The raid is in line with a $25 million token sale that Bithumb hosted. The token was promoted as Bithumb’s native token. It ultimately rolled out to be a high scale fraud that caused investor losses of $25 million. The raid was originally part of the investigation. However, it later also involved Lee Jung Hoon, the chairman of the board for Bithumb Holdings and Bithumb Korea.

BXA Token Sale Backfired on Founders of Bithumb

According to the reports, the Bithumb aspired to list BXA token. It was supposed to be utilized to conclude particular contracts on the platform as part of the agreement. Nevertheless, it failed to make their final payment to acquire Bithumb. Consequently, the amount of BXA tokens dipped from 150-300 KRW each to approximately 3 KRW ($.0026). Nevertheless, some investors demand that both Byung-gun Kim and Lee Jung Hoon correspondingly responsible for losing their investment. Some have already cited the latter of fraud and illicitly transferring funds overseas.

As per the reports, the Bithumb Holdings chairman’s examination emerged from accusations of economic fraud from the token sale of BXA. Investors snapped up a total of 30 billion KRW or approximately $25,700,000 worth of the token. The tokens were touted as Bithumb’s native token when it was pre-sold on the platform.

Bithumb is not the only cryptocurrency exchange to come under the radar of South Korean authorities. Recently, the Seoul Metropolitan Police Agency has reportedly raided and seized the operations of Coinbit. There are accusations of inflating trading volumes. Coinbit is among South Korea’s largest cryptocurrency exchanges, with 252,000 monthly active users. 

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