•Kang Jong-Hyeon, the owner of Bithumb, South Korea’s largest crypto exchange, has been charged with embezzlement and a breach of trust.
•Two other executives of Bithumb affiliates have been charged as well in relation to the manipulation of stock prices of several companies affiliated with Bithumb.
•Vidente, Bithumb’s largest shareholder, is also linked to the case with investigations initiated against the affiliate in October 2022.

Kang Jong-Hyeon, the owner of Bithumb, South Korea’s largest crypto exchange, is facing criminal charges for embezzlement and breach of trust. A warrant has been issued for his arrest, and two other executives of Bithumb affiliates have been charged in relation to the manipulation of stock prices of several companies affiliated with Bithumb. The case involves Inbiogen and Bucket Studio, both of which have Kang’s younger brother, Kang Ji-Yeon, as the CEO. He is suspected to have been involved in the issuance of convertible bonds, which were used to manipulate the stock prices of the two companies.

Vidente, the largest shareholder of Bithumb, has also been linked to the case. Investigations were initiated against the affiliate in October 2022, which led to the Vice President of Vidente taking his own life. Inbiogen is the largest shareholder of Vidente, while Bucket Studio is the largest shareholder of Inbiogen. This means that all the companies are intricately intertwined and the investigations are likely to continue. Vidente holds a 34.2% stake in Bithumb, making it the largest shareholder.

The Seoul Southern District Prosecutor’s Office Financial Investigation Division is in charge of the case and is currently working on gathering further evidence. A thorough investigation is expected to take place as the stakes are high and the possible consequences could be significant. If Kang Jong-Hyeon and the two other executives are found guilty, they could face jail time as well as hefty fines. This case highlights the importance of regulating the crypto market and ensuring that companies comply with laws and regulations.