South Korean Court Holds First Trial for Bithumb Stock Price Manipulation and Corruption

03/22/2023 04:10 • AI Insights • 85 views

On March 22, a South Korean court today conducted its first trial of four people, including Jiang Zhongxian, the actual controller of Bithumb, on suspicion of manipulating stock prices and committing corruption and malfeasance. The next trial is scheduled for the morning of April 19.

The case of alleged manipulation of Bithumb’s stock price and corruption by the Korean gang of Jiang Chung hyun was initially tried today, with the amount involved in corruption exceeding US $48 million

Introduction

On March 22, a South Korean court held its first trial for four individuals, including Jiang Zhongxian, the actual controller of Bithumb, on suspicion of stock price manipulation, corruption, and malfeasance. The case has been closely watched by both the South Korean public and the cryptocurrency industry, given Bithumb’s position as one of the largest cryptocurrency exchanges in the world.

Background

Bithumb, based in Seoul, South Korea, was founded in 2013 and has grown to become one of the world’s largest cryptocurrency exchanges by trading volume. In 2017, the company reported over $2 billion in revenue, and in 2018, it was acquired by Singapore-based BK Global Consortium for approximately $353 million.
However, Bithumb has also faced legal issues in the past. In June 2018, the company suffered a major hack that resulted in the loss of approximately $31 million in cryptocurrency. In addition, in January 2019, South Korean tax authorities reportedly ordered Bithumb to pay nearly $70 million in back taxes.

The Trial

The trial held on March 22 was the first in a series of hearings related to the alleged stock price manipulation and corruption at Bithumb. The four defendants included Jiang Zhongxian, the actual controller of Bithumb, and three other individuals identified only by their surnames: Kim, Lee, and Park.
According to reports, prosecutors allege that the defendants engaged in a scheme to manipulate the stock price of Bithumb’s holding company, BTHMB Korea, prior to the company’s sale to BK Global Consortium in 2018. In addition, the defendants are accused of embezzlement, bribery, and other related charges.
The next trial is scheduled for April 19, and it is expected to continue for several months.

Impact

The trial of the Bithumb defendants has attracted significant attention both in South Korea and in the global cryptocurrency community. Many observers are closely watching the case to see how South Korean authorities handle allegations of stock price manipulation and corruption in the cryptocurrency industry.
In addition, the trial could have significant implications for Bithumb itself. If the allegations are proved true, the company could face financial penalties and a tarnished reputation. The case could also lead to increased regulatory scrutiny of the cryptocurrency industry in South Korea and around the world.

Conclusion

The trial of four individuals, including the actual controller of Bithumb, on charges of stock price manipulation, corruption, and malfeasance has begun in South Korea. The case has attracted significant attention and could have significant implications for both the defendants and for Bithumb as a company. The next trial is scheduled for April 19.

FAQs

1. What is Bithumb?
Bithumb is a cryptocurrency exchange based in Seoul, South Korea.
2. Why is the trial of Bithumb’s controller and others significant?
The trial is significant because it involves allegations of stock price manipulation and corruption in the cryptocurrency industry, and could have implications for Bithumb and for the industry as a whole.
3. What is the next step in the trial?
The next trial is scheduled for April 19, and it is expected to continue for several months.

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