Bithumb Exchange Raided Again by Korean Police

South Korean police have reportedly raided the offices of cryptocurrency exchange Bithumb for a second time in a week. The exchange has remained quiet despite the second police raid.

September 8, 2020 | AtoZ Markets – Following an initial raid on Bithumb headquarters in Seoul on September 2 in connection with fraud charges, South Korean police returned for an additional search and seizure at the crypto exchanges head office in Gangnam-gu on Sept. 7.

Korean police raid Bithumb related to BXA token

According to  Seoul Newspaper report, this time a police officer was able to confirm that the latest search of the head office aims to provide evidence to support the allegation against Bithumb Korea and Bithumb Holdings Chairman, Lee Jung-hoon.

The allegations against the Chairman are in relation to a controversial token called BXA. The token was issued by the Blockchain Exchange Alliance (BXA) and the Singapore-based BXA consortium.

According to reports, the Blockchain Exchange Alliance was due to be taken over by a Singapore-based South Korean firm. However, the deal fell through when the firm defaulted on payment. A condition of the takeover was an obligation for Bithumb to list the BXA token, which it never did following the default.

Ever since the unsuccessful takeover, the BXA token has plunged in value. The price decline came after the firm raised over $24 million in its initial coin offering (ICO). The investors in South Korea believe that Bithumb failing to list the token makes the exchange responsible for their losses.

Investors have since accused Lee Jung-hoon of fraud. They allege that the Bithumb Holding Chairman colluded with BK Group Chairman Kim Byung-gun to raise the $24 million and tank the project.

Think we missed something? Let us know in the comment section below.

Share Your Opinion, Write a Comment