Photo= Yonhap news

 

 

[Alpha Biz= Reporter Kim Sangjin] Kang Jong-hyun, who is suspected to be the real owner of Bithumb's affiliated company, Vidente, has been reported to prosecutors by the Financial Services Commission's Securities and Futures Commission (SFC) for accounting fraud.

On November 7, the SFC announced that it had decided to file charges against Vidente for violating accounting standards by improperly preparing and publicly disclosing its financial statements. The commission also imposed a three-year audit firm designation on Vidente and notified the prosecutors about the case. Kang Jong-hyun, who is believed to have directed the company's operations, was included in the legal action.

According to the SFC, Vidente had purchased stocks held under Kang's name and failed to report transactions with other companies jointly controlled by him. Vidente is a major shareholder of Bithumb Holdings, which owns 73.56% of Bithumb, and holds a 34.22% stake in Bithumb Holdings.

In addition to the accounting charges, Kang is facing accusations of bribing Lee Sang-jun, former CEO of Bithumb Holdings, with tens of billions of won in exchange for getting a specific cryptocurrency listed on Bithumb. Last month, prosecutors requested a prison sentence of 1 year and 6 months for Kang in this bribery case. Lee has also been indicted, with prosecutors seeking a 5-year prison sentence, a 3.05 million won fine, and the confiscation of 15.25 billion won.

 

 

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