Bithumb Offices Raided Amid Ex-CEO’s $2 Million Scandal

Crypto exchange Bithumb is under investigation as South Korean police have raided the company’s headquarters. This action is in response to claims of embezzlement directed against Kim Dae-sik, the former chief executive officer. The inquiry generally focuses on a particular financial transaction involving a large sum of money.

Allegations Center On Apartment Purchase

Based on reports, the core of the investigation revolves around a company lease deposit amounting to $2 million. Prosecutors are looking into claims that Kim Dae-sik allegedly used this money to purchase an apartment for his personal use.

Image: Bloomberg News

Authorities are eager to learn the specifics and legality of the financial flow, even though the precise chronology of this purported transaction is not yet evident. In reaction to these claims, Bithumb has said that the former CEO has already paid back the entire sum in question.

The fact that the inquiry is still ongoing in spite of this return indicates that the prosecutors plan to look closely at the facts underlying the original usage of the corporate funds.

Bithumb Pursues Public Listing Amid Investigation

This investigation comes at a crucial time for Bithumb as the cryptocurrency exchange is actively working towards another attempt to become a publicly traded company. Lee Jae-won, the current CEO of Bithumb, is reportedly pushing forward with the Initial Public Offering (IPO) process.

This move to go public is not a new endeavor for Bithumb. The company’s ambitions to list on the stock market date back to 2020. However, previous attempts have been met with various challenges, preventing the successful completion of the IPO.

Past Challenges Hinder Previous IPO Attempts

A big barrier in Bithumb’s past public appearances was the alleged fraud charges directed against its former chairman. The latest legal hurdles have clearly blocked the flow and distorted its path towards a public listing.

The ongoing embezzlement investigation on the former CEO throws off Bithumb’s present activities. The outcome of this latest legal action on the company’s revived ambitions for an IPO and its position in the South Korean bitcoin market is yet unknown.

The results of the research might have significant effects on Bithumb’s reputation among investors and future possibilities. South Korean bitcoin industry is closely observing the development of this lawsuit.

Featured image from Gemini Imagen, chart from TradingView

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