1. South Korean crypto exchange Bithumb has been hit with a double whammy from the South Korean tax and legal authorities.
2. The National Tax Service has launched a special tax investigation into Bithumb Korea and Bithumb Holdings.
3. Prosecutors have summoned its suspected largest shareholder for questioning.
The South Korean crypto exchange Bithumb has recently been the subject of a double investigation from both the South Korean tax and legal authorities. This investigation has come as a surprise to many in the crypto industry, as Bithumb is one of the largest exchanges in the country.
The National Tax Service (NTS) has launched a special tax investigation into Bithumb Korea and Bithumb Holdings, both of which operate the Bithumb trading platform. This investigation is being conducted by a branch of the Bureau of Investigation of the Seoul Regional Tax Service that focuses on special tax investigations. The NTS aims to examine the domestic and international transactions of both Bithumb Korea and Bithumb Holdings, as well as any of their affiliate companies.
Furthermore, prosecutors have summoned the suspected largest shareholder of Bithumb for questioning. The ownership of the exchange is thought to be highly complex, with many shareholders owning stakes. These include a number of publicly listed companies who have no other ties to the blockchain or crypto industries.
The investigation has caused some concern, especially as Bithumb was hit with a hefty tax bill, worth over $64 million, in a previous NTS investigation in 2018. This has led some to speculate that this current investigation could lead to a similarly hefty tax bill for the company.
The investigation has also been complicated by the fact that the Vice President of one of the publicly listed companies was found dead outside his home at the end of last year. Police are calling the death a “suspected suicide” and have been looking into the possible connections between the man’s death and the investigation into Bithumb.
The crypto industry is watching the investigation closely, as it could have a major impact on the future of the exchange. With both the NTS and prosecutors on the case, the outcome of this investigation could have major implications for Bithumb and the wider crypto industry.