Seoul Police Seized South Korean’s Largest Crypto Exchange Bithumb

Seoul Police Seized South Korean’s Largest Crypto Exchange Bithumb

Bithumb, the largest cryptocurrency exchange in South Korea. It reportedly raided by Seoul Metropolitan Police Agency’s Intelligent Crime Investigation Unit, for a $25 million token sale on its platform.

As per the report, the raid was connected to the Chairman of the Board at Bithumb Korea and Bithumb Holdings Lee Jung Hoon. Loon accused of fraud and illicitly sending funds overseas.

Bithumb reported conducting the token sale for BXA. The token reportedly promoted as the Bithumb’s native token which involved large range fraud causing the investors with the damage of 30 billion won ($25 million).

Over 300 participants joined in the token sale lost millions.

Bithumb transaction fee costs around 30% of the transaction amount. However, users reached the exchange’s customer support to clarify the high transaction fees.

Bithumb customer support replied stating,

“The Ethereum network is currently congested, which will result in very high fees. You can withdraw by onmi or trc 20”

Screenshot of Bithumb Customer’s Transaction Fees

Moreover, Bithumb is the ninth-largest crypto exchange by average daily trading volume globally. As per Tokenmarketcap, the exchange has a 24h trading volume that stood at over $365 million.

South Korean crypto exchange Coinbit also seized by police last week for making a false transaction to obtain 100 billion won (84 million). While South Korea continues to break crypto laws, there is a chance of more attacks like these could follow.