Another korean exchange on spotlight. Bithumb raided by police over fraud

sunsilk

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Quote from: dunfida on September 24, 2020, 05:45:51 PM

The question is, is there someone who would be willing to cash out $430 and $604M and will
really be ready to face up on the problems that had been left in the platform? No one will for sure.

A bigger business or exchange that sees their worth and sees that this is an opportunity for them to takeover the exchange. But you're right, if the buyer would have been ready to take all of those existing problems and clear it with their own way.

It ain't worth it for them for that takeover if there's a problem that they have to face instead of taking over the operation on their hands without any problem but only a change in management.

dunfida

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Quote from: examplens on September 24, 2020, 07:36:22 AM

Now Bithumb exchange is listed for sale by owner. Bithumb is looking to sell its exchange US$430 million and US$604 million. Otherwise, this is the second time they have tried to sell it.
source: https://coingeek.com/the-bithumb-exchange-is-for-sale/
after recent problems with the law and fraud investigation, whether it is exit scam in question here? it is obvious that the owners here see a way to avoid all the problems here by selling the business.

This is one of the nearest reason on why they are tending to sell out the business but we dont have any proofs though but with the current issues then we can
presume that they are trying to get rid with the problem.The question is, is there someone who would be willing to cash out $430 and $604M and will
really be ready to face up on the problems that had been left in the platform? No one will for sure.

examplens

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Now Bithumb exchange is listed for sale by owner. Bithumb is looking to sell its exchange US$430 million and US$604 million. Otherwise, this is the second time they have tried to sell it.
source: https://coingeek.com/the-bithumb-exchange-is-for-sale/
after recent problems with the law and fraud investigation, whether it is exit scam in question here? it is obvious that the owners here see a way to avoid all the problems here by selling the business.

Darker45

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As opposed to the case of Coinbit, this one involving Bithumb, it is their chairman, Lee Jung-hoon, who is particularly "accused of fraud and illicitly sending funds overseas." On the other hand, the entire Coinbit exchange, was the one accused of market manipulation.

There is, therefore, a slight difference between the cases of the two exchanges, although we will see in the coming days and weeks whether or not the investigation will further reveal more violations on the part of Bithumb's operation.

I am looking at this couple of cases as a sort of a warning to the rest of the crypto exchanges in South Korea. The authorities seriously mean business and so they better be upright. There must be something good that will come out of this.

stomachgrowls

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Quote from: The Sceptical Chymist on September 02, 2020, 11:31:59 AM

This looks like it's fallout from the ICO and/or IEO craze that ended not too long ago. Usually after bubbles pop, all the thieves start getting exposed, so that part doesn't surprise me. It's happened with stock market bubbles many times in the past.

For several thieves but on total count they are just a small number but at least they do able to do their job.

Quote from: logfiles on September 02, 2020, 10:46:50 AM

S. Korean regulators are certainly cracking down on exchanges, that much is for sure. I don't know how many there are based out of that country, but I bet you that the rest of them are under the microscope right now and I'd also bet that more than one or two are starting to sweat (and there's probably some document shredding going on as well).

For exchange platforms basing on South Korea then pretty sure that they are already sweating yet they do know that they are already next in line.You are totally on point about on that document shredding you say. haha

Would this kind of exchange investigation or cracking down would be followed by other governments as well? Wash trading and other shady modus isnt really that too rare to happen but we know that

nothing do last forever.They might be enjoying for several years and when time comes that they had been busted then consequences would be next.

The Sceptical Chymist

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I read the second link first (the newsasia one), and for the life of me I couldn't figure out how that deal was supposed to go down--but it could be that I haven't had enough coffee yet this morning.

This looks like it's fallout from the ICO and/or IEO craze that ended not too long ago. Usually after bubbles pop, all the thieves start getting exposed, so that part doesn't surprise me. It's happened with stock market bubbles many times in the past.

Quote from: logfiles on September 02, 2020, 10:46:50 AM

Is this the beginning of the fall of one of South Korea's Largest and oldest exchanges?

Sounds like it, though I'm not too familiar with wash trading penalties in S. Korea, nor does it sound like it was a problem with the exchange itself but with one man.

Quote from: logfiles on September 02, 2020, 10:46:50 AM

Are we going to see continued crack down on crypto exchanges in South Korea?

S. Korean regulators are certainly cracking down on exchanges, that much is for sure. I don't know how many there are based out of that country, but I bet you that the rest of them are under the microscope right now and I'd also bet that more than one or two are starting to sweat (and there's probably some document shredding going on as well).

Interesting developments. Thanks for posting this info, OP.

logfiles

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Just barely a week after authorities seized Coinbit exchange, one of South Korea's top exchanges over allegations of wash trading fraud, It has been reported today that officers from the Seoul Metropolitan Police Agency's Intelligent Crime Investigation Unit raided Bithumb's headquarters.

According to cointelegraph;

Quote

The latest checks are purportedly connected with an ongoing police investigation involving Lee Jung Hoon, chairman of board at Bithumb Korea and Bithumb Holdings.

The executive has reportedly been under investigation for alleged economic fraud involving the token known as BXA. The token was purportedly promoted as Bithumb’s native token that eventually turned out to be involved in high scale fraud that caused investor damages of 30 billion won ($25 million)

More information about the BXA token sale fraud can be found here: https://thenews.asia/investors-rail-against-bithumb-over-bxa-token/

News Sources:
1. https://cointelegraph.com/news/seoul-police-reportedly-investigating-korea-s-largest-crypto-exchange-bithumb
2. https://www.coindesk.com/police-raid-headquarters-for-bithumb-koreas-largest-exchange

Is this the beginning of the fall of one of South Korea's Largest and oldest exchanges?
Are we going to see continued crack down on crypto exchanges in South Korea?

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