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A local report states that the investigation will be conducted by a unit dedicated to “special tax investigations.”
South Korean tax authorities are investigating local crypto exchange operator Bithumb Holdings. This is according to a Tuesday report by Yonhap News which states that the National Tax Service is reportedly investigating possible tax evasion via domestic and international transactions of Bithumb Korea, Bithumb Holdings, and affiliates in Gangnam-gu, Seoul. A company official confirmed the news to CoinDesk Korea but could not share details.
A local report states that the investigation will be conducted by a unit dedicated to “special tax investigations.” This is not the first time Bithumb has been at the center of such an investigation. The National Tax Service also conducted a special tax investigation on Bithumb Korea and collected 80 billion won in income tax in 2018. It was determined in that investigation that Bithumb was not guilty of tax evasion.
It is reported that authorities have questioned businessman Kang Jong-hyeon – a former chairman at Bithumb suspected to be the real owner of the company – and his younger sister, Kang Ji-yeon over an embezzlement case involving related companies.
The company was recently in the news over a case involving another former chairman Lee Jung-Hoon. The former exec was acquitted in the first hearing on fraud charges involving $100 million. Prosecutors were seeking an eight-year prison sentence for Jung-Hoon following his July 2021 indictment. It was alleged that he stole money from cosmetic surgeon Kim Byung-Gun during negotiations for an acquisition deal. This was in a matter where Lee proposed a joint management agreement with Kim in which the latter would take over Bithumb.
It was alleged that Lee embezzled the acquisition deposit in the name of the listing “BXA token.” The claim, however, could not be proven.