Bithumb Under Tax Investigation: Prosecution Summons Suspected Shareholder

• South Korean crypto exchange Bithumb has been the subject of a „special“ tax investigation by the National Tax Service (NTS) and prosecutors have summoned its suspected largest shareholder for questioning.
• The investigation is being carried out by a branch of the Bureau of Investigation of the Seoul Regional Tax Service and will examine cases of possible tax evasion.
• Prosecution officials are also investigating Bithumb’s owners, which are thought to be highly complex, with many shareholders owning stakes.

South Korean crypto exchange Bithumb has recently become the subject of a „special“ tax investigation by the National Tax Service (NTS). The investigation is being carried out by a branch of the Bureau of Investigation of the Seoul Regional Tax Service and seeks to examine cases of possible tax evasion. In addition, prosecutors have summoned its suspected largest shareholder for questioning.

The investigation was launched on January 10, when NTS officers were dispatched to the headquarters of both Bithumb Korea and Bithumb Holdings, the two companies operating the Bithumb trading platform. The NTS is seeking to “examine the domestic and international transactions of Bithumb Korea, Bithumb Holdings, and affiliate companies.” This is not the first time that Bithumb has been subject to a tax investigation. Back in 2018, the exchange was hit with a tax bill worth over $64 million.

The ownership of the exchange is thought to be highly complex, with many shareholders owning stakes. These include a number of publicly listed companies that have no other ties to the blockchain or crypto industries. As such, prosecution officials are also looking into the owners of Bithumb. This investigation was prompted by the death of the Vice President of one of the publicly listed companies, which was ruled a “suspected suicide.”

The investigation into Bithumb has caused concern amongst its users, many of whom remain unaware of the potential implications for the exchange. This has been further complicated by the fact that the NTS has yet to issue a statement regarding the investigation.

It is unclear how the investigation will impact the exchange, but it is likely that the process will take some time to resolve. In the meantime, Bithumb users are advised to take extra precautions when using the platform, to ensure that their funds remain safe.