South Korean authorities raid Bithumb Korea
South Koreans have been on the front line in the race for crypto ICOs.In recent years and only a handful of countries have shown a wide-scale adoption of crypto assets like that of South Korea. Regardless of its small geography, South Korea is one of the main countries as far as digital durrency exchanges and adoption. It is quite common to invest and trade using cryptocurrency amongst Koreans. In 2017, the nation was a worldwide leader in the digital money market.The per capita exchange of South Koreans was much more than any other country on the planet. Koreans were very first cryptocurrency aficionados, with one out three salaried individuals investing in crypto. Local trading firms like Bithumb and Coinbit were the topmost exchanges by volume on the planet. However, over time, the police machinery has become quite vigilant about Crypto manipulations.
In the recent checks by police, Bithumb Korea, situated in the Gangnam District of the capital.was reportedly raided. South Korean authorities have allegedly seized Bithumb. It is one of South Korea’s biggest cryptocurrency trading company by exchange volume. Bithumb is the ninth-largest crypto trading company by average daily exchange volume worldwide. The firm was purportedly intending to hold an initial public offering.
The chairman of Bithumb, Lee Jung-hoon, is being investigated for supposed financial fraud which involves the token named BXAand illicitly sending funds overseas. The BXA token was being promoted as a native token of Bithumb. It eventually ended up being entangled with a huge scam that harmed the investors by 30 billion won ($25 million).Such frauds taking place in the crypto world can disrupt crypto-asset rating while the risk of cryptocurrency exchanges creates a fearful environment in the minds of investors.
Along with Bithumb is many other crypto firms came under the radar of Seoul police recently. Towards the end of August 2020, the Seoul Metropolitan Police Agency also conducted raid operations and seized another firm calledCoinbit. Coinbit south Korea’s third-largest cryptocurrency trading company. Coinbit is supposedly engaged in manipulating the market by faking trading volumes to create a gain of $85 million. The 24-hour trading volume stood over a staggering $365 million.
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