Kang Jong-hyun’s Group Manipulates Bithumb’s Share Price And Corrupts About $48M

Key Points:

• South Korea has opened the first trial to try four members, led by Kang Jong-huyn, owner of Bithumb, on charges of stock price manipulation and embezzlement.
• The prosecutor’s office discovered that Kang’s gang had embezzled 62.8 billion won, equivalent to more than $48 million.
• The defendants were found to have breached their disclosure obligations and taken unfair advantage by colluding with accountants.

As reported by Chosun, a South Korean court conducted the first trial of Kang Jong-hyun, the actual controller of crypto exchange Bithumb on March 22, on charges of price manipulation stocks and embezzlement.

Joining the trial were four more people, including Kang Jong-hyun and Jo Mo, representatives of Bithumb affiliates, who were brought to trial for breach of trust and embezzlement under the Act aggravating punishment for specific economic crimes.

During today’s trial, Korean prosecutors said that Kang Jong-hyun illegally acquired shares of Kang Ji-yeon (Kang Jong-hyun’s younger sister), Vidente, Bucket Studio, and INBIOGEN in order to get the right to manage and run these companies.

During that process, despite many changes in shares, they conspired with accountants and others, violated their disclosure obligations, and obtained illicit profits.

Prosecutors found that Jiang’s gang had embezzled a total of 62.8 billion won (about 48.03 million US dollars). It is known that Vidente is the sole largest shareholder of Bithumb, Vidente’s largest shareholder is INBIOGEN, and INBIOGEN’s largest shareholder is Bucket Studio.

In addition, last July, Kang Jong-hyun also caused Vidente’s share price to soar by releasing false information (rumors about acquisition talks between FTX and Bithumb) and contrary information. Convertible shares are converted into shares and then sold off for market profit.

Defendant Kang Jong-hyun and the defense team did not make a separate statement in court that day.

The subsequent trial against Kang is scheduled to be held on April 19 at 10:40 a.m. at the Seoul Southern District Court.

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