South Korean authorities have arrested the former chairman of crypto exchange Bithumb, on charges of embezzlement and market manipulation. Prosecutors accused Kang Jong-Hyun of conspiring with a business partner to manipulate stock prices and steal 60 billion won ($49 million) from his company, local news outlet JTBC reported. The Seoul Southern District Prosecutor’s Office had sought the arrest of Kang and two executives, including his younger sister, of companies associated with Bithumb last month, according to financial news agency Yonhap Infomax. Prosecutors believe that Kang owned Bithumb affiliates and took part in boosting the stock prices of these companies by disclosing good news to the markets, JTBC reported. Kang’s younger sister, Kang Ji-Yeon, is the chief executive of publicly-listed companies Inbiogen and Bucket Studio, both of which are associated with Bithumb. Kang has denied the allegations, saying he no longer had a stake in related companies. Decrypt has contacted South Korea’s Supreme Prosecutor’s Office and Bithumb for comment. The new arrest is unrelated to a separate probe into possible tax evasion at Bithumb, which was reported by Yonhap last month.
Read more : Bithumb’s Ex-Chairman Kang Jong-Hyun Arrested: Report.
