South Korean cryptocurrency exchange Bithumb was reportedly raided for the third time by Seoul Metropolitan Police Agency’s Intelligent Crime Investigation Unit.
Local police authorities seized several shares in Bithumb Holdings belonging to Bithumb Korea Director Kim Byung-Geon. The seizure activity was granted by the Seoul Central District Court on September 14.
Bithumb Still Under Investigation
Director Kim had been trying to acquire Bithumb, but was unsuccessful to do so. However, he had been sued in the process. He had previously been accused of the seizure of a significant number of shares belonging to the exchange’s top board director Lee Jung-Hoon.
The crypto exchange is undergoing investigations for the third time after it allegedly sold its native BXA tokens. The tokens are sold for about $25 million, based on a former takeover deal with the Bithumb Korea Group.
Furthermore, Bithumb’s sales supervisor Samjong KPMG completed a letter of intent (LOI) at the beginning of this month explaining its plan to sell its own stake in Bithumb Holdings. This has been halted by the exchange’s first raid on September 2 and second raid on September 7. And the continued legal dispute between Kim and Lee.
Crypto Traders Affected by Bithumb’s Seizures
As per the Blockchain Transparency Institute (BTI) report, Bithumb was ranked fifth in the world and also the second biggest crypto exchange in Korea by average daily trading volume. According to Coingecko, the exchange supports 109 cryptocurrencies and trading pairs.
During the early days of September, the trading volume of Bithumb was over $600 million. But after the continued raid by the Seoul police, the exchange’s trading volume has been reduced, with a 24-hour trading volume of $166 million, at the time of writing.
Similarly, last month, South Korean cryptocurrency exchange Coinbit was seized by the Seoul police for allegedly making false transactions in obtaining $84 million worth of cryptocurrencies.