Bithumb, a cryptocurrency exchange based in South Korea, has recently come under scrutiny from both the country’s tax and legal authorities. The tax authorities have decided to conduct a “special” inquiry into the exchange’s business practices. In addition, an individual believed to be the company’s major shareholder has been subpoenaed for further interrogation.
Bithumb Under Investigation
According to the latest reports, tax authorities visited the offices of Bithumb on January 10 in Gangnam-gu, Seoul, in order to investigate whether or not the centralized exchange complies with tax legislation on cryptocurrency activities. The tax authorities are looking into potential tax avoidance by looking into domestic and international transactions conducted by Bithumb Korea, Bithumb Holdings, and its affiliates. The Seoul Regional Tax Service’s 4th Bureau of Investigation, a division of NTS, is in charge of the investigation.
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It’s not the first time that Bithumb has been the subject of a tax investigation. In 2018, NTS began an inquiry into the company and subsequently obtained an income tax payment of 80 billion won or $64 million.
Bithumb’s Legal Troubles
Officials from government agencies are also conducting an investigation into the proprietors of the Bithumb empire. The ownership of the crypto exchange is considered to be extremely complicated, with a large number of stockholders owning stakes in the business. Among them are a number of publicly traded companies that do not have any other connections to the blockchain or cryptocurrency industry.
As reported earlier on CoinGape, towards the end of the previous year, the corpse of the Vice President of one of these companies was discovered outside of his residence. The manner of death was officially ruled a “suspected suicide” by the police. According to the reports, the individual had disposed off crucial evidence in advance of a search warrant being executed at the company’s facilities.
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