Kang Jong-hyun, a businessman known as the actual owner of Bithumb, a virtual currency exchange, was arrested early today (2nd) on charges of manipulating stock prices of related companies and stealing company money.
The Seoul Southern District Court issued an arrest warrant for Mr. Kang and Mr. Cho, an employee of a Bithumb affiliate, saying, "There is a risk of destroying evidence and escaping."
Mr. Kang is accused of being key in manipulating the stock prices of Bithumb affiliates Vident, Inbiogen, and Bucket Studio.
On the 25th of last month, the prosecution requested arrest warrants for three people, including Kang and two executives and employees of Bithumb affiliates, on charges of fraudulent illegal transactions, breach of trust and embezzlement under the Capital Markets Act.
Kang is the older brother of Jiyeon Kang, CEO of Bithumb affiliates Inbiogen and Bucket Studio.