The offices of South Korean cryptocurrency exchange Bithumb were raided by the Seoul Southern District Prosecutor’s Office.
The unexpected show-up is a part of an ongoing investigation into market manipulation of a coin listed on the exchange. According to local sources, the specific coin in question has not been identified.
The prosecution is investigating whether a specific force or person intentionally increased the price of the coin and made an unfair profit.
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In addition to Bithumb, the prosecution also plans to examine the transaction history of other exchanges where the coin is listed, per the report.
An official from the prosecution stated:
It is a search and seizure to secure the transaction details of a specific coin, and it has nothing to do with Bithumb.
The raid on Bithumb‘s offices comes at a time when the exchange is also being investigated by South Korea’s tax authorities. Taxation officers are looking for evidence of tax evasion via domestic and international transactions on the exchange and its affiliates.
In a separate probe, Bithumb Chairman Kang Jong-Hyun and two other executives were recently charged with embezzlement, breach of trust, and fraudulent, illegal transactions.
Kang allegedly stole the company’s money and conspired to manipulate stock prices.
Bithumb is one of only five Korean cryptocurrency exchanges remaining following a 2021 crackdown in which approximately 70 domestic exchanges closed after failing to meet regulatory requirements.
In other Bithumb-related news, the South Korean Supreme Court has ordered Bithumb to pay damages of a total of 251 million won to investors due to a service outage in 2017.