Police reportedly seize South Korea's largest crypto exchange Bithumb

Exchanges • September 2, 2020, 6:00AM EDT

UPDATED: September 2, 2020, 6:38AM EDT

The Seoul Metropolitan Police Agency has reportedly seized South Korea's largest crypto exchange Bithumb for alleged fraud.

South Korea's oldest newspaper, the Seoul Shinmun, reported the news on Wednesday, saying that Bithumb's offices have been raided. The exchange is reportedly accused of pre-selling native BXA tokens worth about 30 billion won (~$25 million) to investors and then not listing the token, which has allegedly led to losses to investors.

Bithumb is said to have issued BXA tokens in the past concerning its acquisition by Singapore-based BK Group. But that deal reportedly didn't materialize. Bithumb chairman Lee Jung Hoon is also said to be under investigation by police on charges of escaping property.

The Block has reached out to Bithumb for comments and will update this story should we hear back.

South Korean crypto exchanges appear to be going through trouble. Last week, the Seoul Metropolitan Police Agency also seized Coinbit exchange for allegedly inflating about 99% of its trading volumes, which resulted in "unfair profits" of at least about $84 million for the exchange and its team.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.