South Korea’s National Tax Service (NTS) is conducting a “special tax investigation” into cryptocurrency exchange Bithumb, according to local media reports. The investigation comes amid a series of controversies surrounding the exchange, including the acquittal of former Bithumb chair Lee Jung-Hoon on fraud charges, and the death of Park Mo, an executive at the largest shareholder of Bithumb, who was under investigation for embezzlement and stock price manipulation.
The investigation, which was reportedly carried out on January 10th, saw tax agents raid the exchange’s headquarters in Seoul as part of a compliance investigation. The authorities are said to be exploring the possibility of tax evasion by examining the domestic and international transactions of Bithumb Korea, Bithumb Holdings, and its affiliates. The agents are also said to be exploring possible tax evasion related to the ownership of Bithumb.
This is not the first time Bithumb has been investigated by the NTS. In 2018, the exchange was also under a special tax investigation, which resulted in the exchange winning roughly $64 million in income tax. The current investigation is being carried out by the 4th Bureau of Investigation of the Seoul Regional Tax Service, which is responsible for “special tax investigations.”
On January 3rd, former Bithumb chair Lee Jung-Hoon was acquitted of $70 million in fraud charges. Just prior to the acquittal, on December 30th, Park Mo, an executive at the largest shareholder of Bithumb, was found dead. He was under investigation by local authorities for embezzlement and stock price manipulation.
The death of Park Mo is the latest in a series of deaths among crypto billionaires, including MakerDAO co-founder Nikolai Mushegian and Amber Group co-founder Tiantian Kullander, among others. Some in the crypto community have pointed to the fact that these deaths occurred around the same time as the fall of FTX.
Regulators around the world have been keeping a close watch on the crypto industry in light of the turmoil, which has plagued the space in recent months. The investigation into Bithumb is a reminder of the increased scrutiny that the industry is facing, and highlights the need for transparency and compliance to avoid any potential legal issues.
Overall, Bithumb, as one of the major cryptocurrency exchange in South Korea, should be aware of the regulations and compliance, and should take all necessary measures to ensure that it is operating within the legal framework. This includes ensuring that all transactions are properly reported and taxes are paid in a timely manner. As the crypto industry continues to grow and evolve, it is important for exchanges like Bithumb to maintain a high level of transparency and compliance to avoid any potential legal issues.
