Breaking: Bithumb Exchange is the subject of a second investigation in a row
Bithumb, a South Korean cryptocurrency exchange, has been under scrutiny by both the tax and legal authorities. The exchange’s business practices have been the subject of a special inquiry by the tax authorities. A subpoena has been issued to an individual who is believed to be the major shareholder of the company for further investigation.
Bithumb Under Investigation
According to recent reports, tax authorities visited Bithumb’s offices in Gangnam-gu on January 10, in Seoul to check whether the central exchange is compliant with tax legislation regarding cryptocurrency activities. Tax authorities are investigating possible tax avoidance by looking at domestic and international transactions conducted Bithumb Korea, Bithumb Holdings and its affiliates. This investigation is being conducted by the Seoul Regional Tax Service’s 4th Bureau of Investigation (a division of NTS).
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Bithumb is not the first to be the subject of a tax investigation. NTS launched an investigation into the company in 2018 and obtained an income tax payment of 80 Billion Won or $64 Million.
Bithumb’s Legal Troubles
Officials from various government agencies are also investigating the Bithumb empire’s owners. It is believed that the ownership of the crypto exchange is complex, with many stockholders holding stakes in it. There are many publicly traded companies that have no other connections to the cryptocurrency industry or blockchain.
CoinGape reported that the body of the Vice President of one these companies was found outside his residence towards the end last year. Officially, the police ruled that the death was a suicide. According to reports, the deceased had destroyed crucial evidence before a search warrant was executed at the company’s premises.
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