Bithumb Under Scrutiny by Korea’s Tax Authorities

South Korea’s National Tax Service (NTS) is apparently conducting a “special tax inquiry” against Bithumb Korea and Bithumb Holdings to see if the cryptocurrency platform has complied with local taxes regulations.

The authorities have also investigated Kang Jong-hyeon and his sister, Kang Ji-yeon, who is alleged to be the true owner of the exchange. The 4th Bureau of Investigation of the Seoul Regional Tax Service will investigate whether Bithumb was implicated in tax evasion, according to a recent report. It is important to note that this section handles only exceptional tax matters.

Supposedly, the NTS will check Bithumb’s tax practises by watching the company’s foreign and domestic transactions. The authorities will investigate further the operations of Kang Jong-hyeon (the supposed owner of the company) and Kang Ji-yeon, his younger sister. Multiple reports have suggested that Jong-hyeon is Bithumb’s major shareholder. To maintain a low profile, he has registered the majority of his company holdings, real estate, and multiple cars in the name of his sister. Recent news reports in South Korea imply that the mystery guy is dating Park Min-young (one of the most famous local actresses).

In 2018, the authorities began a similar tax examination into Bithumb. They collected 80 billion won (about $64 million) in income tax at the time. Mr. Park, the Vice President of Vidente, was discovered dead outside his house in Seoul towards the end of 2022, although the first inquiry revealed no indications of a possible murder. His firm is one of Bithumb Holdings’ top stockholders (the organisation behind the trading venue).

Park was accused of stealing client cash and manipulating stock prices, while FTX’s previous CEO, Sam Bankman-Fried, was apparently in advanced acquisition negotiations with the exchange.
Lee Jung-hoon, the former chairman of the South Korean cryptocurrency platform, has not breached the Act on the Aggravated Punishment of Specific Economic Crimes and has not robbed Kim Byung-gun of 112 billion won (about $87.5 million), according to a separate report. If the court had found him guilty, he would have faced up to eight years in prison.