The CEO of Bithumb is suspected of taking a $3.7 million bribe to list the FANC token. CELEbe Korea, the issuer of the FANC coin, was searched.
Bithumb CEO Accused Of Taking $3.7M Bribe To List FANC And Manipulating Price
Digital Asset’s exclusive report reveals that CELEbe Korea, the issuer of the FANC coin, has recently been arrested and subjected to a search by the prosecution. This action stems from allegations suggesting that the CEO of Bithumb Holdings received a bribe amounting to 5 billion won (approximately $3.7 million).
The prosecutor’s office has seized and searched CELEbe Korea, the entity responsible for the Fancy Coin, based on substantiated evidence.
Bithumb Holdings serves as the holding company for Bithumb, and its CEO, Lee, is recognized as a trusted confidant of Bithumb’s primary shareholder, former chairman Lee Jung-hoon.
The media has reported that among South Korean cryptocurrency exchanges, only Bithumb has listed the fancy token (as of March 2023). Approximately 87% of the transactions involving this cryptocurrency are conducted on the Bithumb platform. Furthermore, there are suspicions of market manipulation revolving around the price trend of fancy, particularly during the period of May 25-26.
Data indicates that the trading volume more than doubled, with a corresponding price increase of approximately 6.6%. While this may not be significant in the crypto market, the relatively low volume of FANC trading raises doubts. As of May 26, the trading volume for FANC stands at approximately 1.4 billion won ($1.05 million).
Presently, Bithumb itself has also been subjected to confiscation and investigation by the prosecutor’s office in connection with allegations of a large-scale transfer of Wemix (WEMIX) by independent lawmaker Kim Nam-guk.
The exchange found itself embroiled in controversy when Congressman Kim transferred approximately 900,000 WEMIX to Upbit in March 2022. Congressman Kim failed to report this unusual transaction to the Financial Intelligence Unit (FIU), resulting in the subsequent confiscation and investigation.
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