Bithumb's de facto owner arrested over alleged embezzlement

A businessman known to be the de facto owner of the operator of South Korea's largest cryptocurrency exchange Bithumb was arrested on February 2 over alleged embezzlement.

The Seoul Southern District Court issued an arrest warrant for Kang Jong-hyun. He is facing multiple charges, including embezzlement, dereliction of duty and fraudulent transactions, Yonhap reports.

The 41-year-old businessman is the elder brother of Kang Ji-yeon, the head of the kiosk supplier Inbiogen, which holds the biggest share in Vidente Co. Vidente is the largest shareholder of Bithumb by holding a 34.22 percent stake.

Prosecutors suspect the siblings colluded to embezzle corporate funds and manipulate stock prices.

Prosecutors have expanded an investigation surrounding the siblings since last year, starting with raiding the offices of several Bithumb affiliates. Kang Jong-hyun has also been banned from leaving the country.

Kang recently came under the spotlight after a romantic relationship with actress Park Min-young.