Seoul police today raided the office of South Korean cryptocurrency exchange Bithumb on suspicion of fraud with the bxa token.
According to local media reports, bithumb Holdings CEO Lee Jung Hoon is accused of defrauding investors who bought the BXA token. The token was introduced as a crypto asset of the blockchain Exchange Alliance (BXA).
Last year, Bithumb management negotiated the sale of a 51% stake in Singapore-based bthmb Holdings. As part of the transaction, the exchange was to list BXA. It is reported that during the ICO, BXA tokens were sold in the amount of 30 billion South Korean won (more than $25 million). About 300 investors participated in the campaign. One of the investors claims to have invested about a million dollars in BXA.
However, after September 30, 2019, BXA tokens almost completely lost value, despite the close completion of the transaction with BTHMB Holdings and the stated prospects. BTHMB Holdings has not made a final payment, and BXA is currently trading at $.0026. Investors stated that the bxa token was to be taken over by Bithumb. But in December, bthmb Chairman Byung-gun Kim explained that the sale of bxa tokens is only related to the development of the main network of the BXA platform, and does not imply the transfer of tokens to Bithumb management.
A few days ago, Seoul police also raided the offices of the cryptocurrency exchange Coinbit. The site’s management is suspected of manipulating trading volumes and illegally receiving $85 million.
Recall that in June last year, a lawsuit was filed against the bithumb exchange for not taking the necessary measures to protect users ‘ confidential information. A few months ago, Bithumb filed for an initial public offering (IPO) in South Korea.