- Mr. Park, Vice President of Vident, the largest shareholder firm of Bithumb, committed suicide, according to local reports.
- Prosecutors in South Korea have been investigating Mr. Park for alleged fraud and manipulation of stock prices.
- As Vice President of Vident, Park allegedly handled Bithumb’s accounting.
- The chairman of Bithumb is also facing a separate trial over his alleged involvement in the fraud.
Mr. Park Mo, Vice President of Vident, the largest shareholder firm of Bithumb, committed suicide in his home on Friday morning, according to local reports.
The deceased faced investigations from prosecutors in South Korea over alleged embezzlement and manipulation of stock prices belonging to Bithumb affiliates. The affiliates of the crypto exchange include Vident, Inbiogen, and Bucket Studio.
In October, the prosecutors commenced investigations after suspicion that Park and his accomplice amassed illicit gains from the manipulative act.
While in his capacity as the Vice President of Vident, Park allegedly took charge of the accounting operations of Bithumb. He held this position under the leadership of the sister and brother of Mr. Kang Ji-yeon, who claimed to be chairman of the crypto exchange. Reportedly, these individuals conspired with Park to issue convertible bonds, initiating slush funds and amassing illicit profits.
South Korean Prosecutor to Investigate Park’s Death
Meanwhile, the South Korean prosecutor has vowed to investigate the circumstances surrounding the death of the Vice President. The agency noted that the death of Mr. Park wouldn’t deter its unrelenting commitment to seeing the investigation to a logical end.
According to the prosecutor, the executives of the crypto exchange have, over time, made vicious efforts to frustrate the investigation. In November, one of the executives of Bithumb affiliates allegedly concealed and destroyed evidence capable of aiding the investigation ahead of the search and seizure conducted by the prosecutor.
Kang is currently facing a separate trial over his alleged involvement in the fraud. Recently, BK group chairman Kim Byung-gun accused Kang of defrauding him in a $70 million takeover deal of the crypto exchange.
Byung-gun alleged that he paid $70 million as an initial payment to buy Bithumb. He said Kang, as part of the negotiations, promised to list BXA, a token belonging to Blockchain Exchange Alliance.
However, Bithumb, through Kang, allegedly failed to list the token for financial reasons, leading those who bought the coins expecting the acquisition to sue him. This put the chairman at risk of an eight-year jail term if found guilty of the allegations.
On the Flipside
In response to an increase in illicit activities involving cryptocurrencies, the South Korean government has begun cracking down on the sector since late last year. The lack of licenses from local regulatory agencies has forced more than half of crypto exchanges to close.
Why You Should Care:
Bithumb, South Korea’s largest crypto exchange, has been under investigation for more than two years, making it one of the most high-profile crises in the crypto sector of the country.
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