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South Korea Starts Investigating Crypto Exchange Bithumb (Report)

The NTS will allegedly look into whether Bithumb and its alleged owner Kang Jong-hyeon violated tax policies.

The South Korean National Tax Service (NTS) has reportedly launched a “special tax investigation” into Bithumb Korea and Bithumb Holdings to determine whether the cryptocurrency platform has complied with domestic taxation laws.

Kang Jong-hyeon (rumored to be the actual owner of the exchange) and his sister Kang Ji-yeon have also been investigated.

According to recent reports, the Seoul Regional Tax Service’s 4th Bureau of Investigation will investigate whether Bithumb was involved in any tax evasion. It is worth noting that this unit only handles special tax cases.

The NTS will allegedly monitor Bithumb’s international and domestic transactions in order to verify the company’s tax operations. Kang Jong-hyeon (the firm’s hypothetical owner) and his younger sister, Kang Ji-yeon, will be investigated further.

Several sources have indicated that Jong-hyeon is Bithumb’s largest shareholder. To maintain a low profile, he has registered most of his business interests, real estate, and numerous vehicles in the name of his sibling. According to the South Korean press, the mysterious man is dating Park Min-young (one of the most famous local actresses).

In 2018, officials conducted a similar tax investigation on Bithumb. They collected 80 billion won (over $64 million) in income tax at the time.

As CryptoPotato reported at the end of 2022, Mr. Park, the Vice President of Vidente, was discovered dead near his home in Seoul, with no evidence of a possible murder. His company is one of Bithumb Holdings’ largest shareholders (the organization behind the trading venue).

Park was accused of stealing customer funds and manipulating stock prices, and FTX’s former CEO, Sam Bankman-Fried, was said to be in advanced talks to buy the exchange.

According to another report, Lee Jung-hoon, the former Chairman of the South Korean cryptocurrency platform, did not violate the Act on the Aggravated Punishment of Specific Economic Crimes and did not defraud Kim Byung-gun for 112 billion won ($87.5 million). If he had been found guilty, he could have faced up to eight years in prison.

 

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