South Korean prosecutors raided the offices of crypto exchange Bithumb due to allegations that its former CEO, Kim Dae-sik, embezzled $2 million to finance a personal apartment. The investigation emerged after suspicions that a company lease deposit of 3 billion Korean won was misappropriated. Although Bithumb claims Kim has repaid the funds in full, the authorities are scrutinizing the financial practices within the company. This investigation follows previous probes by the Financial Supervisory Service that also raised concerns about Kim's actions. Amid these legal challenges, Bithumb is pursuing plans for an initial public offering (IPO), aiming to remove judicial risks associated with its major shareholders and accelerate its public market debut after facing revenue declines. This scenario is reminiscent of past scandals involving Bithumb’s officials, emphasizing the ongoing regulatory scrutiny in the cryptocurrency industry in South Korea.

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