According to sources, South Korean law enforcement officials are presently investigating Lee Sang-jun, the CEO of Bithumb, for purportedly accepting bribes in return for listing digital currencies on the platform.
The Seoul Southern District Prosecutors’ Office has officially announced an ongoing investigation into Lee Sang-jun, the CEO of Bithumb. While no specific details have been disclosed regarding the extent of the investigation, it comes in the wake of a police raid on both Lee’s residence and Bithumb’s office complex. The purpose of the raid was to collect evidence that could potentially incriminate Lee. As the investigation continues, further updates will be provided by the authorities.
Coinone, a prominent South Korean exchange, is currently under investigation for allegations of bribery involving a former employee. The individual in question is said to have accepted bribes to list specific tokens on the platform. While the prosecution has not disclosed the identity of the ex-employee, they have cited South Korean privacy laws as the reason for their discretion. This development comes after similar allegations against Bithumb, highlighting the need for transparency and accountability within the cryptocurrency industry.
In addition, Chosun Biz, a reputable local media outlet, also disclosed that the bribery scandal involving listings had extended its reach to encompass multiple prominent digital currency exchanges in South Korea. As per the report, law enforcement agencies actively scrutinize Korbit, Gopax, and Upbit for their purportedly illicit token listings.
In South Korea, token listings are overseen by exchanges that operate under the Digital Asset Exchange Joint Consultative Body (DAXA), a consortium of prominent platforms. However, DAXA’s practices have recently been questioned following the delisting of game publisher Wemade’s native token by four major exchanges.
South Korean regulators are proactively enhancing regulatory oversight by proposing a new legal framework that mandates token issuers to seek approval from financial authorities. This proposal is set to be incorporated into the forthcoming Digital Asset Basic Act, which will provide a comprehensive regulatory framework for digital currencies and exchanges. The move aims to ensure transparency and accountability in the digital asset space and is a significant step toward establishing a secure and stable environment for investors and stakeholders alike.
As per the proposed legislation, tokens shall be granted immunity from regulatory scrutiny solely if they are already enlisted on prominent exchanges. Nevertheless, the question remains whether DAXA will cede its jurisdiction.
In response to the recent ecological breakdown of Terra, regulatory bodies have taken decisive action, conducting numerous raids on exchange offices and implementing a comprehensive overhaul of the existing legal framework governing digital currencies.
