South Korean regulators have seized the share of the local cryptocurrency exchange Bithumb from its major investor. The move has been in connection with an ongoing case of the exchange for allegedly defrauding its clients, reported local media.
The company's director Kim Byung-Geon had his holdings in the exchange seized on the decision of the Seoul Central District Court on Sept. 14.
Kim was earlier sued in the process of unsuccessfully trying to acquire Bithumb. He also filed an application for the seizure of the share of the majority shareholder, Chairman Lee Jung-Hoon.
The seizure was executed today at the Bithumb Korea Office in Gangnam-gu and overseen by accounting firm Samjong KPMG. Earlier this month, the firm filed a Letter of Intent (LOI) that it plans to sell its own share in Bithumb Holdings and will be sharing a shortlist soon.
Bithumb is currently under investigation for allegedly selling BXA tokens for 30 billion won (about $25 million) but failed to do so, which resulted in investors incurring huge losses. The exchange has already been raided twice by the police this month.