South Korea’s National Tax Service (NTS) is reportedly conducting a special tax inquiry into Bithumb.
South Korean crypto exchange Bithumb has recently drawn the attention of the country’s tax and legal authorities. The tax authorities have decided to launch a “special” investigation into the exchange’s business practices. An individual suspected to be the company’s largest shareholder has also been subpoenaed for further interrogation.
South Korean regulators probe Bithumb
Per the latest local reports, tax authorities visited Bithumb’s offices in Gangnam-gu, Seoul, on Jan. 10. They probed whether the centralized exchange was compliant with tax laws governing cryptocurrency activities. The tax authorities are investigating Bithumb Korea, Bithumb Holdings, and its affiliates for possible tax evasion by examining domestic and foreign transactions. The investigation is led by the Seoul Regional Tax Service’s 4th Bureau of Investigation, a division of NTS.
This is not the first time a tax investigation has been conducted on Bithumb. In 2018, NTS launched an investigation into the firm, resulting in an income tax payment of 100 billion won ($70 million).
Bithumb’s Legal Concerns
Government officials are also looking into the owners of the Bithumb empire. The crypto exchange’s ownership is thought to be extremely complicated, with a vast number of stockholders holding stakes in the company. Several firms have no other ties to the blockchain or cryptocurrency industries.
As earlier reported, Park Mo, an executive at Bithumb’s largest shareholder, was discovered dead outside his residence on Dec. 30. Local authorities were investigating him for embezzlement and manipulation of the stock market.
The executive’s death was the latest in a string of crypto billionaires, all of whom passed away within a month of each other. Among them were the MakerDAO and Amber Group co-founders, Nikolai Mushegian and Tiantian Kullander. Some community members have pointed out that they happened around the same time as FTX’s demise.