Court enforces Seizure of Bithumb Korea

[TrevorS]

BK Chairman Kim Byung-Geon, who had been involved in a lawsuit in the process of failing to acquire Bithumb, received a decision to seize shares of Bithumb Holdings by the Seoul Central District Court on September 14th.

Therefore, on the 16th, a seizure was executed at the Bithumb Korea office in Gangnam-gu, Seoul.

Director Kim Byung-gun has filed an application for seizure of a considerable number of Bithumb Holdings shares against Chairman Lee Jung-hoon, the substantial shareholder of Bithumb.

According to the investment banking (IB) industry, Samjung KPMG, the supervisor of the sale of Bithumb, has completed filing a letter of intent (LOI) earlier this month for the sale of its stake in Bithumb Holdings, and plans to select a short list soon.

The recent two rounds of'confiscation and search for the virtual currency exchange Bithumb' and'legal dispute between director Kim Byung-gun and chairman Lee Jung-hoon, including the seizure decision of the Seoul Central District Court', which took place on September 2nd and September 7th It is paying attention to what kind of effect it will have.

http://www.newsfreezone.co.kr/news/articleView.html?idxno=260700

[Fundamentals Of]

Sadly, the beginning of the end for Bithumb has already begun. This is going to be all spiral downward for the country's top cryptocurrency exchange. Beginning from the first raid which was almost immediately followed by a second raid. And now the enforcing of the seizure.

Bithumb traders will probably be leaving in large number from this exchange. I would do the same if I have an account in there. This platform could close anytime. 

[bitsurfer2014]

Sadly, the beginning of the end for Bithumb has already begun. This is going to be all spiral downward for the country's top cryptocurrency exchange. Beginning from the first raid which was almost immediately followed by a second raid. And now the enforcing of the seizure.

I think there is nothing to worry about this recent development on Bithumb since it could only lead to a corporate takeover and will not stop its daily operations.

Bithumb traders will probably be leaving in large number from this exchange. I would do the same if I have an account in there. This platform could close anytime. 

With Bithumb's status as one of the large crypto exchange in Korea, traders will have second thoughts on leaving it altogether, not unless they find a better alternative exchange which I doubt could be hard to find at the moment. Imho.

[Fundamentals Of]

Sadly, the beginning of the end for Bithumb has already begun. This is going to be all spiral downward for the country's top cryptocurrency exchange. Beginning from the first raid which was almost immediately followed by a second raid. And now the enforcing of the seizure.

I think there is nothing to worry about this recent development on Bithumb since it could only lead to a corporate takeover and will not stop its daily operations.

There is a real reason to worry. Many companies in recorded history have fallen due to quarrels, legal battles, and the like which involve high company officials against fellow officials. It cannot be said that the operation is business as usual. There might be a ripple effect and no one can tell how the entire company will be affected.

Bithumb traders will probably be leaving in large number from this exchange. I would do the same if I have an account in there. This platform could close anytime. 

With Bithumb's status as one of the large crypto exchange in Korea, traders will have second thoughts on leaving it altogether, not unless they find a better alternative exchange which I doubt could be hard to find at the moment. Imho.

South Korea has a lot of crypto exchanges which are as reputable as Bithumb. The country has Huobi, Coinone, etc.

[wack slacker]

A good start and a bad ending. The Korean crypto market has been in decline for the past few years. They used to be a symbol of the world when they marked the 3k8 Bitcoin milestone in this country, a few hundred dollars away from the world, and coinmarketcap had to remove them from the tracking system to get the market back correctly.
Bithumb has many years of experience, they are the largest exchange, but now no one trusts this exchange anymore.
Volume has decreased, spread, and empty trade volume occurred in many swap pairs.

[avikz]

Sadly, the beginning of the end for Bithumb has already begun. This is going to be all spiral downward for the country's top cryptocurrency exchange. Beginning from the first raid which was almost immediately followed by a second raid. And now the enforcing of the seizure.

Bithumb traders will probably be leaving in large number from this exchange. I would do the same if I have an account in there. This platform could close anytime. 

True! No one would continue trading on a troubled platform knowing that enforcement agencies are behind it! Even though their international entity is not touched by the agencies but still the credibility factor may force the active users to leave.

I believe when the owners can't keep things clean and transparent, it's better they close down their operations.

[bitsurfer2014]

I think there is nothing to worry about this recent development on Bithumb since it could only lead to a corporate takeover and will not stop its daily operations.

There is a real reason to worry. Many companies in recorded history have fallen due to quarrels, legal battles, and the like which involve high company officials against fellow officials. It cannot be said that the operation is business as usual. There might be a ripple effect and no one can tell how the entire company will be affected.

Transfer of shares of stocks to another owner or corporate hostile takeovers are a regular thing in everyday corporate environment and it doesn't mean the company is already doomed.

With Bithumb's status as one of the large crypto exchange in Korea, traders will have second thoughts on leaving it altogether, not unless they find a better alternative exchange which I doubt could be hard to find at the moment. Imho.

South Korea has a lot of crypto exchanges which are as reputable as Bithumb. The country has Huobi, Coinone, etc.

Aside from Coinone, Houbi is originally a Chinese company based on Singapore. Huobi Korea is only a subsidiary of Huobi unlike Bithumb which is originally from South Korea.

[TrevorS]

South Korean police summon Bithumb chairman for alleged fraud

The Seoul Metropolitan Police Agency has reportedly summoned Lee Jung Hoon, the chairman of Bithumb, for alleged fraud.

South Korea's state-run news agency Yonhap reported Friday, saying that Lee, 44, is under investigation by the police. Lee is accused of pre-selling Bithumb's native BXA tokens worth about 30 billion won (~$25 million) to investors and then not listing the token, which has allegedly led to investors' losses.

Bithumb once issued BXA tokens concerning its acquisition by Singapore based BK Group, but that deal didn't materialize. Lee is also charged with evading property abroad.

BK Group chairman Kim Byung-Gun, 57, is also accused of the alleged fraud, but he is reportedly not under police investigation.

The summon follows two police raids on Bithumb in recent weeks. On Wednesday, the Seoul Central District Court is said to have also seized Kim's shares in Bithumb. Accounting giant Samjong KPMG reportedly oversaw the seizure.

https://www.theblockcrypto.com/linked/78131/police-summon-bithumb-chairman-alleged-fraud

[Yaunfitda]

Sadly, the beginning of the end for Bithumb has already begun. This is going to be all spiral downward for the country's top cryptocurrency exchange. Beginning from the first raid which was almost immediately followed by a second raid. And now the enforcing of the seizure.

Bithumb traders will probably be leaving in large number from this exchange. I would do the same if I have an account in there. This platform could close anytime. 

Well this is really a black eye for Bithumb since they have carved a name in crypto space as far as trading exchange is concern. And when one door closes, another opportunity opens to maybe another exchanges will open up to fill the void for our South Korean traders or they are just going to move to other local exchanges. Or we don't know, maybe there will be take over with new management and rebrand everything and then continue their stay in the South Korean crypto platform game.

[todiefor17]

Unfortunately, I am worried about my investments in this exchange. I participated in the staking Proxi Credit on Bithumb, will this exchange close, will I get my money back or will it be confiscated by the Korean government?
This sucks, hope it's not the next 'btc-e'.

[Fundamentals Of]

I think there is nothing to worry about this recent development on Bithumb since it could only lead to a corporate takeover and will not stop its daily operations.

There is a real reason to worry. Many companies in recorded history have fallen due to quarrels, legal battles, and the like which involve high company officials against fellow officials. It cannot be said that the operation is business as usual. There might be a ripple effect and no one can tell how the entire company will be affected.

Transfer of shares of stocks to another owner or corporate hostile takeovers are a regular thing in everyday corporate environment and it doesn't mean the company is already doomed.

Stock transfers may be happening regularly but not corporate hostile takeovers. It doesn't happen everyday in corporate environment.

Now, tell me, do you think what happened to Bithumb is one common thing in everyday corporate environment and that everything is business as usual as far as the users are concerned?

A single raid by the police is bad. A repeated raid is worse. The case is no simple thing. It was a $25.2 million fraud case. Not to mention that just last year Korean authorities also ordered the exchange to pay $69 million in withholding tax.

With Bithumb's status as one of the large crypto exchange in Korea, traders will have second thoughts on leaving it altogether, not unless they find a better alternative exchange which I doubt could be hard to find at the moment. Imho.

South Korea has a lot of crypto exchanges which are as reputable as Bithumb. The country has Huobi, Coinone, etc.

Aside from Coinone, Houbi is originally a Chinese company based on Singapore. Huobi Korea is only a subsidiary of Huobi unlike Bithumb which is originally from South Korea.

Yes, but my point is there is such a thing as Huobi Korea, which means that crypto traders in the country will not be having a very hard time looking for another reputable exchange now that Bithumb is being embroiled in legal battles.

[bitsurfer2014]

Now, tell me, do you think what happened to Bithumb is one common thing in everyday corporate environment and that everything is business as usual as far as the users are concerned?

A single raid by the police is bad. A repeated raid is worse. The case is no simple thing. It was a $25.2 million fraud case. Not to mention that just last year Korean authorities also ordered the exchange to pay $69 million in withholding tax.

On the contrary, its business as usual as Bithumb's trading activity is doing good as per CMC data which more likely depicts its users sentiment towards the exchange.



https://coinmarketcap.com/rankings/exchanges/

It seems like naysayers were wrong thinking that Bithumb is doomed. I think those challenges that they are facing right now could be absolutely resolved in due time not unlike hacked exchanges who have big possibility of closing down as with the case of Mt. Gox.

So I think users will be more concerned if Bithumb had been hacked and not these corporate issues being negatively amplified by social media as part of a demolition job to hurt the exchange's image. I think in the end, it will be its users who will decide its fate. Imho.

[Killrbit]

It seems like naysayers were wrong thinking that Bithumb is doomed. I think those challenges that they are facing right now could be absolutely resolved in due time not unlike hacked exchanges who have big possibility of closing down as with the case of Mt. Gox.

While i agree that said challenges could be overcome, it would be disingenuous to come out and say that everything is fine and business as usual. As a user of said exchange your primary concern in such a scenario is the protection of your own funds and nothing else. IMHO why should a user risk his funds and take such a large risk.

So I think users will be more concerned if Bithumb had been hacked and not these corporate issues being negatively amplified by social media as part of a demolition job to hurt the exchange's image. I think in the end, it will be its users who will decide its fate. Imho.

I would hardly call 2 raids in the span of a week and followed up with a court enforced order for seizure as being a social media demolition job. It would only be prudent for any user with funds on bithumb to withdraw their money as soon as possible ( while this option is still available). And maybe nothing comes of it down the line but do you really want to put your money at risk on a maybe especially when there are so many exchanges available for use.  And assuming there wasn't another exchange then why not move to cold storage until there is more clarity available on the matter.

[Fundamentals Of]

Now, tell me, do you think what happened to Bithumb is one common thing in everyday corporate environment and that everything is business as usual as far as the users are concerned?

A single raid by the police is bad. A repeated raid is worse. The case is no simple thing. It was a $25.2 million fraud case. Not to mention that just last year Korean authorities also ordered the exchange to pay $69 million in withholding tax.

On the contrary, its business as usual as Bithumb's trading activity is doing good as per CMC data which more likely depicts its users sentiment towards the exchange.

Which honestly puzzled me and made me ask whether the traders of Bithumb are real people or just bots, or whether the volume in coinmarketcap is simply created by wash trading and is therefore fake volume. Personally, if I am in their shoes, I would definitely leave Bithumb and move to a safer exchange which is free from legal glitches.

So I think users will be more concerned if Bithumb had been hacked and not these corporate issues being negatively amplified by social media as part of a demolition job to hurt the exchange's image. I think in the end, it will be its users who will decide its fate. Imho.

These are not simple corporate issues. These are legal or criminal issues. And I don't think the reports coming out in the media are part of a demolition job.

I agree. Let the users decide their own fate with the exchange in the face of all these developments.

[AmoreJaz]

Now, tell me, do you think what happened to Bithumb is one common thing in everyday corporate environment and that everything is business as usual as far as the users are concerned?

A single raid by the police is bad. A repeated raid is worse. The case is no simple thing. It was a $25.2 million fraud case. Not to mention that just last year Korean authorities also ordered the exchange to pay $69 million in withholding tax.

On the contrary, its business as usual as Bithumb's trading activity is doing good as per CMC data which more likely depicts its users sentiment towards the exchange.

Which honestly puzzled me and made me ask whether the traders of Bithumb are real people or just bots, or whether the volume in coinmarketcap is simply created by wash trading and is therefore fake volume. Personally, if I am in their shoes, I would definitely leave Bithumb and move to a safer exchange which is free from legal glitches.

So I think users will be more concerned if Bithumb had been hacked and not these corporate issues being negatively amplified by social media as part of a demolition job to hurt the exchange's image. I think in the end, it will be its users who will decide its fate. Imho.

These are not simple corporate issues. These are legal or criminal issues. And I don't think the reports coming out in the media are part of a demolition job.

I agree. Let the users decide their own fate with the exchange in the face of all these developments.

i have to agree with you here. if i have funds on that exchange, i have already pulled it out before it becomes too late. we dont know the truth about those figures shown in CMC. better not trust those numbers.

Unfortunately, I am worried about my investments in this exchange. I participated in the staking Proxi Credit on Bithumb, will this exchange close, will I get my money back or will it be confiscated by the Korean government?
This sucks, hope it's not the next 'btc-e'.

in my opinion, better pull your investments out. is there some sort of time period before you can pull out your money? with the legal things happening with bithumb, you need to make sure that your investments are safe. and right now, i dont think you are in safe side. is there an insurance option in bithumb like the SAFU of binance?

[coolcoinz]

Which honestly puzzled me and made me ask whether the traders of Bithumb are real people or just bots, or whether the volume in coinmarketcap is simply created by wash trading and is therefore fake volume. Personally, if I am in their shoes, I would definitely leave Bithumb and move to a safer exchange which is free from legal glitches.

He's just showing a daily volume chart with a 50% increase in the last 24 hours. If you had coins on the exchange yo'd probablyw ant to convert them into fiat money because these are more protected by law. An exchange cannot simply wire your fiat to some offshore account and claim they were hacked but they can disappear with your coins. IMO this is the reason for the trade increase in the last 24 hours. People are converting to fiat and pulling out and/or converting weak altcoins into a single coins like BTC or ETH and pulling that out because it's easier to order a single withdarwal of 1BTC than have that divided into 20 altcoins worth $500 each.

Trading volume says nothing about the state of the exchange and court orders don't get executted over a day or even a week. It can take months before they shut down.