Bithumb CEO Investigated for Bribe in Change for False Listings

• South Korean legislation enforcement investigates Bithumb CEO over alleged bribery for listings.
• Coinone additionally faces comparable allegations in opposition to a former worker.
• Different South Korean exchanges, together with Korbit, Gopax, and Upbit, are below investigation for unlawful listings.

Legislation enforcement officers in South Korea are presently conducting an investigation into Lee Sang-jun, the CEO of Bithumb, over allegations that he accepted bribes in trade for itemizing digital currencies on the platform, as per sources.

The Seoul Southern District Prosecutors’ Workplace has confirmed that they’re investigating Lee Sang-jun, CEO of Bithumb, however haven’t supplied any additional particulars relating to the scope of the investigation. This follows a police raid on each Lee’s non-public residence and Bithumb’s workplace advanced, which aimed to collect incriminating proof.

Other than Bithumb, Coinone, one other South Korean trade, can be being investigated over comparable allegations in opposition to a former worker who reportedly accepted bribes to record sure tokens on the platform. The prosecution has not revealed the id of the ex-employee, citing South Korean privateness legal guidelines.

Furthermore, Chosun Biz, an area media outlet, reported that the bribery scandal associated to listings has expanded to incorporate a number of different prime digital foreign money exchanges in South Korea. In response to the report, legislation enforcement companies are presently investigating Korbit, Gopax, and Upbit for his or her alleged unlawful itemizing of tokens.

In South Korea, exchanges are chargeable for token listings, working below the Digital Asset Change Joint Consultative Physique (DAXA), which contains main platforms. Nonetheless, DAXA’s operations have come below scrutiny after 4 prime exchanges delisted the native token of sport writer Wemade.

To determine higher oversight, South Korean regulators are proposing a brand new authorized framework that will require token issuers to hunt approval from monetary authorities. This proposal is anticipated to be included within the upcoming Digital Asset Fundamental Act, which is able to present an all-encompassing regulatory framework for digital currencies and exchanges.

In response to the proposed legislation, tokens will solely be exempt from regulatory scrutiny if they’re already listed on main exchanges. Nonetheless, it’s unsure whether or not DAXA will relinquish its authority.

The latest collapse of Terra’s ecosystem led to a stern response from regulators, together with a number of raids on trade workplaces and a revamp of the present authorized framework for digital currencies.