As suspicions arose regarding the true owner of Bithumb, Kang Jong-hyun (41), identified as a key figure in the embezzlement case, stated in his first trial that he is unemployed. Kang's side said they would clarify whether he admits to the charges at the next trial.
At around 10:30 a.m. on the 22nd, the Seoul Southern District Court Criminal Division 12 (Presiding Judge Dang Woo-jeung) held the first hearing for Kang, who is charged with fraud under the Capital Markets Act, along with Cho, an executive of a Bithumb affiliate, and two other employees.
According to the prosecution's summary of the charges, "Kang purchased the investment shares of his younger sister, Kang Ji-yeon, thereby securing management rights over the listed companies Bucket Studio and Inbiogen, effectively controlling these companies." Kang was identified as the true owner of Inbiogen and Bucket Studio, where Kang Ji-yeon serves as CEO, raising suspicions and making him a central figure in the Bithumb embezzlement case. When the court asked Kang about his occupation to verify his identity, he hesitated for a few seconds before answering "unemployed."
The prosecution alleges that Kang and others embezzled approximately 62.8 billion KRW during company operations from 2020 until September of last year. The prosecution stated, "Kang was in a state of credit delinquency and could not conduct financial transactions under his own name, so he established the company under Cho's name and effectively managed it. In early 2019, without following proper procedures, he embezzled company funds through a borrowed-name account loan scheme to acquire stocks and virtual currencies and intended to use them for purchasing luxury goods."
Kang and others are also charged with spreading false information last July that Vidente was negotiating a sale with the U.S. virtual asset exchange FTX, then selling about 3.4 million shares of Vidente stock to gain an illicit profit of 8.4 billion KRW.
Kang is also accused of instructing Bithumb affiliate executive A to destroy evidence after the prosecution began its investigation. According to the prosecution, Kang told A, "We need to eliminate any connection between me and the company," and ordered the replacement of CCTV and computer hard drives.
Additionally, the prosecution applied charges of aiding and abetting a criminal by alleging that Kang gave 20 million KRW to employee B to facilitate overseas departure, provided 30 million KRW for living expenses after B was subject to a travel ban, and arranged for B to stay in an officetel in Gyeonggi Province.
Kang's defense stated, "Due to the late appointment of counsel, we were unable to discuss with the client or review and analyze the prosecution's investigation records," and said they would clarify whether Kang admits to the charges at the next hearing. The three other defendants also did not admit to the charges at this hearing.
The next trial is scheduled for 10:40 a.m. on the 19th of next month.
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