AZ on what went wrong with the Bithumb exchange and the way forward

  • The National Tax Service (NTS) of South Korea is conducting a “special tax investigation” into Bithumb Korea and Bithumb Holdings.
  • Authorities also investigated Kang Ji-yeon and Kang Jong-hyeon, the alleged beneficial owners of the exchange.

Bithumb Korea and Bithumb Holdings are under “special tax investigation” by the National Tax Service (NTS) of South Korea. This is to determine if it is Bitcoin or not [BTC] The platform followed local tax laws.

The real owners of the stock exchange have also been investigated by the police. According to a recent reportBithumb will be the subject of an investigation by the Fourth Investigation Bureau of the Seoul Regional Tax Department. It is important to remember that this module only deals with unusual tax disputes.

NTS reportedly monitors the company’s domestic and foreign transactions to confirm Bithumb’s tax activities. The authorities will be subject to further investigation into the actions of the accused.

Deep dive into this issue

According to many rumors, one of the defendants was a significant shareholder of Bithumb. He registered some of his business interests, homes, and cars in his brother’s name to keep a low profile.

The authorities conducted similar tax audits for Bithumb in 2018. It then received 80 billion won (more than $64 million) in income tax. The former Bitchumb chief was acquitted of fraud charges involving $70 million on January 3.

An official from Bithumb’s largest shareholder was also found dead on December 30 – shortly before the acquittal was issued. He was investigated by authorities in his area for stock price manipulation and embezzlement.

The president’s death was the latest in a string of crypto billionaires dying within a month of each other, including the founders of Amber Group and MakerDAO.

The cryptocurrency industry is under scrutiny

Regulators from around the world have been keeping a close eye on the cryptocurrency market in light of the recent concerns.

Based on data on major hacks and scams available since 2012, new research by CoinJournal shows that the incidence of cryptocurrency-related hacks and scams increased by 27.66% from 2021 to record levels in 2022.

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