[Prompt: Please rewrite the following text while preserving the HTML tags exactly as they are. Focus on rephrasing sentences and using synonyms to enhance the uniqueness of the content without changing the original meaning or adding new information. Ensure the core message and ideas remain intact, and do not alter the structure or purpose of the post.]: South Korean prosecutors raid cryptocurrency exchange Bithumb over embezzlement allegations: report
Francisco Rodriguez | Edited by Parikshit Mishra Updated Mar 20, 2025 12:34 UTC Published Mar 20, 2025 12:12 UTC
South Korean prosecutors have launched an investigation into Bithumb, one of the country’s leading cryptocurrency exchanges, over allegations that the company’s funds were misused to help a former executive buy an apartment.
According to local news, officials from the Seoul Southern District Prosecutor’s Office raided Bithumb’s main office in Yeoksam-dong and other locations on Wednesday.
Wu Blockchain reported that some projects were paying up to $10 million in fees for listing their tokens on Upbit and Bithumb.
The investigation centers on allegations that Bithumb provided 3 billion Korean won (US$2 million) in collateral for an apartment rental in Seoul’s Seongsudong neighborhood to Kim Dae-sik, the company’s former CEO and current adviser.
The Financial Supervisory Service, South Korea’s financial regulator, initially looked into the case before handing it over to prosecutors. In an interview with The Chosun Daily, a Bithumb representative reportedly confirmed that some of the allegations were valid, adding that Kim had repaid the loan in full after receiving it.
Bithumb has faced a slew of legal troubles in recent years, including tax audits and raids related to price manipulation investigations. Its latest trouble comes as the company is reportedly considering listing its shares on the Nasdaq.
Bithumb did not provide any comment when CoinDesk reached out to them for clarification.
Disclaimer: The information collected for this article was translated using artificial intelligence.
UPDATE (March 20, 12:33 UTC) : Added additional details and backstory.
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