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South Korea Police Raid Bithumb Crypto Exchange

South Korea Police Raid Bithumb Crypto Exchange

Seoul Metropolitan Police Agency’s Intelligent Crime Investigation Unit in South Korea has raided Bithumb, one of the country’s largest cryptocurrency exchanges, concerning a $25-million token sale hosted on its platform.

According to a report, which was originally written in Korean, the raid was connected to Lee Jung-hoon, one of the exchange’s top board members. Hoon has been under police investigation for fraud and for illicitly sending funds overseas. The police was reported to have raided Bithumb in its headquarters in the Gangnam district of Seoul.

Bithumb was reported to conduct a token sale for BXA, which is offered by the so-called BXA Consortium. The token was promoted as Bithumb’s native token, which eventually turned out to be part of a high-scale fraud that caused investor damages of 30 billion won ($25 million).

More than 300 investors that participated in the token sale lost millions

Bithumb is one of South Korea’s largest cryptocurrency exchanges and the ninth-largest crypto exchange by average daily trading volume globally. As per CoinGecko, the exchange has a 24h trading volume that stood at over $365 million.

Bithumb has not provided any information regarding the alleged raid as of the time of writing.

Meanwhile, the Seoul Metropolitan Police Agency also raided and seized the operations of Coinbit , another cryptocurrency exchange. The exchange is allegedly involved in generating an income of $85 million from wash trading.

Read Also: South Korean Police Seize Bithumb Shares in Third Raid

CoinQuora is an online publication that aims to educate about news, exchanges, and markets in the cryptocurrency and blockchain industry