Bithumb Under Investigation for Soliciting Money for Cryptocurrency Listings

03/17/2023 08:17 • Digital Disruptors • 94 views

On March 17th, it was confirmed that employees of Bithumb, another cryptocurrency exchange in South Korea, after Coinone, were also being investigated by prosecutors for allegedly collecting money to list cryptocurrencies. The Financial Investigation Department 2 of the Southern Seoul District Attorney’s Office conducted an arrest and search on the Bithumb Holdings office and the suspect Lee.

Bithumb employees are investigated by South Korean prosecutors for allegedly accepting bribes when the company launched cryptocurrency

Analysis based on this information:

South Korea’s cryptocurrency exchange, Bithumb, has come under investigation by the authorities for allegedly accepting money in exchange for listing cryptocurrencies on its platform. This news comes shortly after Coinone, another South Korean cryptocurrency exchange, was also embroiled in a similar controversy. The South Seoul District Attorney’s Office’s Financial Investigation Department 2 carried out a search and arrest at the offices of Bithumb Holdings, as well as that of the suspect, Lee.

Cryptocurrency exchanges act as intermediaries between buyers and sellers of digital currencies. As such, they play an essential role in the cryptocurrency market. However, exchanges such as Bithumb are facing multiple challenges, including a lack of clear regulations and high competition. To keep themselves ahead of the competition, exchanges have resorted to listing fees to bring more cryptocurrencies to their platform. Typically, these fees are standard across the industry and depend on the quality of the token and the expected trading volume.

However, it appears that some exchanges, including Bithumb and Coinone, may have gone a step further by soliciting payments directly from blockchain companies. The exchanges’ personnel allegedly received money from new blockchain companies promising them access to their platforms, an inappropriate practice that would add to their revenues.

For blockchain companies, getting listed on a cryptocurrency exchange is crucial for two key reasons. Firstly, it brings visibility to the project, and secondly, it allows cryptocurrency traders to access the tokens. Given the high competition in the market, getting listed on an exchange can be challenging, and blockchain companies are often required to come forward with listing fees. It remains to be seen if the allegations against Bithumb and Coinone are true, but if proved, such a practice would be highly unethical.

In conclusion, the investigation of Bithumb’s money solicitation for cryptocurrency listings highlights several issues within the cryptocurrency industry. The lack of clear regulations, high competition, and questionable practices of some exchanges may hinder the industry’s growth and adoption. The authorities must take strict measures to ensure that cryptocurrency exchanges operate transparently and ethically, preventing any fraudulent activities.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/03/17/bithumb-under-investigation-for-soliciting-money-for-cryptocurrency-listings/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.