South Korean prosecutors raided crypto exchange Bithumb as they investigate claims that its former CEO, Kim Dae-sik, embezzled funds to acquire a personal apartment. The allegations involve a 3 billion Korean won (over $2 million) company lease deposit that the former CEO purportedly misappropriated for personal use. Bithumb contends that Kim has repaid the amount in full after taking out a loan immediately following an investigation by the Financial Supervisory Service (FSS). As Bithumb prepares for its long-awaited initial public offering (IPO), the raid poses potential complications. The company is attempting to mitigate judicial risks related to major shareholders, especially after a previous incident involving legal troubles faced by a former board chairman who was acquitted by South Korea's Supreme Court. Bithumb's IPO plans, dating back to 2020, faced challenges but were reignited in 2024, despite a significant revenue decline in 2023.

Source 🔗