South Korean police raided Bithumb’s headquarters, investigating its former CEO, Kim Dae-sik, for embezzlement.
The Apartment Purchase
The main focus? A $2 million company lease deposit Kim allegedly used to buy himself an apartment. Prosecutors want to know the full story behind this transaction, even though Bithumb claims Dae-sik has repaid the money. The investigation continues despite the repayment, suggesting prosecutors want to examine how the funds were initially used.
IPO on Hold?
This couldn’t come at a worse time for Bithumb. They’re trying again to go public via an Initial Public Offering (IPO). Current CEO Lee Jae-won is pushing forward, but this isn’t their first attempt. Bithumb has been trying to list on the stock market since 2020, but previous attempts failed.
Past Problems
Past legal issues, including fraud charges against a former chairman, have already hampered Bithumb’s IPO efforts. This new embezzlement investigation adds another major hurdle. The outcome will significantly impact Bithumb’s reputation and future IPO chances. The entire South Korean crypto industry is watching closely.
