• South Korean crypto exchange Bithumb’s offices were reportedly raided on Thursday by authorities in an investigation related to potential price manipulation of a coin listed on the platform.
• Prosecutors are investigating transactions linked to a specific person or entity allegedly manipulating the coin’s price to make a profit.
• The Seoul District Prosecutors Office stated that the search and seizure was to secure the transaction details of a specific coin and had nothing to do with Bithumb.
On Thursday, South Korean crypto exchange Bithumb found itself in the middle of yet another legal storm. According to an article by Yonhap, authorities raided the offices of the exchange as part of an investigation into potential price manipulation of a coin listed on the platform. The token in question has not been revealed.
Seoul District Prosecutors Office stated that the search and seizure was to secure the transaction details of a specific coin and had nothing to do with Bithumb. They are probing transactions linked to a specific person or entity allegedly manipulating the coin’s price to make a profit. The prosecutors have not revealed further details about the raid.
The news comes days after the South Korean district court rejected the appeal of Bithumb against a tax bill of $69 million. The exchange was charged the amount by the National Tax Service in relation to its 2017 operations. Bithumb had appealed to have the bill reduced by half, but the court rejected the plea.
The exchange is also facing a lawsuit filed by an investor who claims to have lost money due to the lack of security measures on the platform. The investor is seeking compensation for the losses suffered due to the hack that occurred on the exchange in June 2019.
Bithumb has had a tumultuous few years. The exchange has been embroiled in numerous lawsuits and investigations since 2018. In 2019, the exchange was raided by the police in a probe related to the alleged embezzlement of customer funds.
It remains to be seen how the exchange will respond to the latest investigation. With multiple legal issues to tackle, Bithumb will have to work hard to regain the faith of its customers.
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