South Korean Biz Exec Bailed as Bithumb Probe Continues

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A half-opened set of steel handcuffs against the background of the South Korean flagA half-opened set of steel handcuffs against the background of the South Korean flag
Supply: International Picture Archive/Adobe

A South Korean court docket has launched a media mogul and enterprise govt on bail as a probe into market manipulation and insider buying and selling at the crypto exchange Bithumb continues.

The chief, Received Younger-sik, is the previous CEO of Chorokbaem Group, the mother or father agency of Chorokbaem Media.

The latter is one in all South Korea’s most notable manufacturing corporations.

The agency is answerable for hit Korean dramas corresponding to The Penthouse and selection TV titles like Okay-pop Star.

Per KBS News, Received was ordered to pay a deposit of $232,000 and put on an digital tag.

The court docket has additionally forbidden Received from leaving the nation, destroying proof, and contacting anybody involved with the probe.

The court docket additionally advised Received that he could be taken again into custody if he did not attend additional court docket hearings.

Won Young-sik outside a South Korean court.
Received Younger-sik forward of a court docket listening to earlier this 12 months. (Supply: SBS/YouTube)

Bithumb Probe Continues

Final 12 months, Received discovered himself embroiled in allegations of wrong-doings at Bithumb, South Korea’s second-biggest change by buying and selling quantity.

An exposé printed in September 2022 alleged that a mysterious and elusive businessman named Kang Jong-hyun was the true owner of Bithumb.

Kang allegedly owns controlling shares of a number of corporations with minority stakes in Bithumb.

Prosecutors assume that Kang used his place to control the inventory market costs of a few of these corporations, that are listed on the KOSDAQ change.

They launched an initial probe in October 2022, with the web later widening to extra celebrities, together with the golf pro husband of a “first generation” K-pop star.

Prosecutors: Inventory, Crypto Markets Have Been Manipulated

Prosecutors additionally assume Kang might have manipulated crypto markets by bribing ex-Bithumb officers to listing cash on the platform.

This, they declare, helped artificially spike costs, permitting a small group of crypto merchants to make a quick revenue on their cash.

The long-running authorized saga additionally entails Kang’s former girlfriend, the actress Park Min Younger.

Kang put in Park’s older sister in an govt function at one of many Bithumb affiliate corporations.

Media specialists have claimed that Kang’s involvement with Chorokbaem Media led Park to signal with the expertise company Hook Leisure, a Chorokbaem subsidiary.

What Was Enterprise Exec’s Alleged Function in ‘Crypto Trade Scandal?’

Prosecutors allege that Received and Kang used convertible bond name choices held by the Bithumb associates Vidente and Bucket Studio.

A graph showing Vidente share prices on the KOSDAQ exchange over the past 10 years.
Vidente share costs over the previous 10 years. (Supply: KOSDAQ/Naver)

Prosecution officers declare that the choices have been executed between December 2021 to July 2022 for corporations operated by Received’s youngsters.

This, prosecutors declare, might have disrupted markets to the tune of over $45 million.

Received can be accused of utilizing undisclosed insider details about Chorokbaem Group to grant convertible bond name choices to his little one’s firm.

Officers assume this helped Received and others increase $1.9 million “in unfair income” attributable to a subsequent rise in inventory costs.

Regardless of the authorized furor surrounding the change, Bithumb has seen its fortunes enhance of late.

The platform has clawed back some of the ground it had lost to its biggest rival Upbit, due to the launch of commission-free buying and selling.

A graph showing trading volumes on the Bithumb crypto exchange over the past 12 months.
Buying and selling volumes on the Bithumb crypto change over the previous 12 months. (Supply: CoinGecko)

Bithumb is also hoping to list on KOSDAQ, changing into the nation’s first and solely publicly listed crypto change.

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