Crypto Exchange Bithumb put up for Sale Amidst Fraud Allegations

One of the biggest South Korean Crypto exchange, Bithumb is reportedly looking for buyers as it is put up for sale amidst fraud allegations.

By · Sep 23, 2020 . 6min read

Crypto Exchange Bithumb sale news
Source : UnSplash

South Korea’s major crypto trading exchange is once again up for sale, domestic news publication Herald Corporation reported on Sept. 22. The owners of Bithumb are reportedly contemplating to sell the cryptocurrency exchange. The Bithumb deal is valued around 500 billion won to 700 billion won.

The resolution to trade the exchange comes amidst allegations of Bithumb’s chairman, Lee Jung Hoon, for alleged fraud. Recently, the exchange claims more than 4.7 million members and accounts for over 50% of South Korea’s cryptocurrency trading volume. According to Herald Corporation, an accounting giant Samjong KPMG ACI plans to sell the exchange for approximately $600 million. In early September, at least various potential buyers reportedly expressed their plans to acquire the company. 

Recently, Bithumb Holdings manages 75% of the platform. Earlier in 2018, Bithumb was put up for sale for $350 million. The potential buyer was the Singapore BK Global Consortium. Nevertheless, the consortium’s chairman, Kim Byung-gun, could not draw adequate investment to finance the sale. This led to its deal cancellation last October. 

Moreover, police have seized a large portion of Lee’s shares in Bithumb Holdings. Investors have also cited Lee of violations of the Act on Aggravated Punishment for Specific Economic Crime. They state that he may have endeavoured to misappropriate investors’ funds in overseas property possession or offshore investments. Police are also questioning Lee on suspicion of violating this law. 

Crypto exchange Bithumb Under Investigation

The Bithumb sale news comes when senior Bithumb officials are under investigation by law enforcement in South Korea. South Korea police raided its headquarters as investors pressed charges against it. Authorities claim that the exchange sold its native BXA token for over $25 Million. Bithumb strived to list the tokens on its platform but could not succeed. This resulted in a massive loss for investors. Five days after the first raid, the police conducted another raid on Sept. 7.

The problem escalated when the police raided its headquarters again. However, this time the authorities took some serious measures. They captured dozens of shares in Bithumb Holdings belonging to Bithumb Director after receiving the Seoul Central District Court approval.

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