South Korea starts an investigation against Bithumb over the token listing for money

Now the Bithumb crypto exchange executive is under investigation in South Korea over taking money for crypto assets listing.

Bithumb is a popular South Korean crypto exchange. In 2014, this exchange was founded and now this exchange is providing services to more than 8 million users. Between 2017 to 2022, the Bithumb exchange fell under many controversies over hacks & tax evasions. 

A Recent local news media report confirmed that the Seoul Southern District Prosecutors’ Office initiated an investigation against some of the leading key figures of the Bithumb exchange over taking bribes for certain crypto assets listed on the Bithumb exchange.

The majority of the reports dragged Lee Sang-jun, the chief exec of Bithumb Holdings, under these allegations. Earlier this, in October 2022, Lee Jung-hoon faced fraud charges but was found not guilty.

Crypto exchanges & fraud

In the history of the crypto sector, many crypto companies conducted fraud-like activities in the crypto market with their corresponding platform.

In Nov 2022, the FTX exchange became the top biggest fraud in the crypto sector. FTX former CEO Sam Bankman-Fried (SBF) allegedly used the customer’s funds for personal benefits and finally, FTX filed for bankruptcy under the chapter 11 code in a US bankruptcy court, along with 130 affiliated companies.

SBF is facing multiple fraud charges but so far no charge has been proved against him. According to experts, it may take several years for the FTX creditors to get their funds from the FTX exchange.

These types of incidents in the crypto sector are just a conclusion for the crypto Investors to take lessons and never go with blind investment in any crypto asset and also never hold all crypto funds on a single exchange.

Read also: Current Bitcoin price behavior will attract more Institutions, says Ark CEO