[Asia Economy Reporter Hwang Seoyul] Kang Jonghyun, known as the actual owner of the cryptocurrency exchange 'Bithumb,' appeared for a pre-trial detention hearing on the 1st. Kang is suspected of embezzling company funds from Bithumb affiliates.
At 10:16 a.m. on the 1st, Kang Jong-hyun is entering the court for a pre-arrest detention hearing (warrant review) held at the Seoul Southern District Court. Photo by Hwang Seoyul chestnut@
At 10:30 a.m. on the same day, Kwon Giman, the chief judge in charge of warrants at the Seoul Southern District Court, conducted the detention hearing for Kang, who is accused of fraudulent trading under the Capital Markets Act and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. Kang appeared at the court around 10:16 a.m. When asked by reporters whether he admitted to the embezzlement charges, he only said, "I will cooperate sincerely," before heading into the courtroom.
Earlier, on the 25th of last month, the Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office (led by Chief Prosecutor Chae Heeman) filed arrest warrants for Kang and two executives.
Kang Jonghyun is the elder brother of Kang Jiyeon, CEO of Bithumb affiliates Inbiogen and Bucket Studio. Although the CEOs of Inbiogen and Bucket Studio are officially Kang Jiyeon, suspicions have arisen that Kang Jonghyun is the actual owner, making him a key figure in the embezzlement case.
Vidente is a KOSDAQ-listed company and the single largest shareholder of Bithumb, holding 34.22% of Bithumb Holdings' shares. Inbiogen is the largest shareholder of Vidente, and Bucket Studio is the largest shareholder of Inbiogen.
The prosecution found evidence that the Kang siblings conspired to embezzle company funds or manipulate stock prices, leading to a raid on Bithumb affiliates including Vidente, Inbiogen, and Bucket Studio in October last year. Last month, Kang Jonghyun was summoned twice for investigation as a suspect on the 9th and 20th.
The results of the detention hearing are expected to be announced late in the afternoon on the same day.
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