Reporters dig deeper into crypto exchange Bithumb’s mysterious ownership history

Bithumb – one of South Korea’s largest crypto exchanges – remains in the public spotlight with questions about the firm’s ownership structure raising concerns across the nation.

Last month, the country was rocked when it was revealed that Kang Jong-hyun, the reclusive majority shareholder of Bithumb, had secretly been romantically involved with top-billed actress Park Min-young. Reporters also discovered that Kang’s affiliates had bought Park’s talent agency – and had installed her older sister as a director of a publicly traded company that he also owns.

Kang is allegedly the “secret chairman” of Bithumb, crypto industry sources have claimed – and three of the other firms he owns were raided by prosecutors investigating those claims earlier this month. These include Vidente, a video equipment manufacturer that reportedly owns a 34% stake in Bithumb.

But the exchange — and Kang in particular — could have a rocky ride as the week begins. One of the country’s top investigative journalism-based news programs — MBC’s “PD’s Notebook — will air an episode devoted to Kang tonight, Newsen reported.

The producers promised further revelations and revealed some of the results of the investigation. They alleged that Kang’s younger sister also appears to be a key player – as she is listed as Vidente’s largest shareholder. The show’s creators also reported that at one point, Kang’s sister saved him from bankruptcy by “mobilizing $16 million.”

Kang’s sister is also listed as the largest shareholder in Inbiogen, another of the firms targeted by prosecutors this month – and described by the press as a Bithumb affiliate.

Previous disclosures have shown that Kang’s business card lists him as CEO of InBioGen.

More scrutiny to follow for Bithumb

The TV show will also look at the fate of a failed $350 million takeover of Bithumb in 2018 by a Singapore-based plastic surgery firm. BK Consortium agreed to the deal in 2018, only to default on payments in 2019. A token launched by the same consortium also sparked controversy when Bithumb appeared to abandon its plans to list the coin – prompting hundreds of investors was not in the pocket.

Politicians will also wade into the issue today, with a National Assembly committee set to question domestic crypto sector players about Bithumb’s ownership structure in a special session.

A number of key industry players have been called in to answer questions from MPs. They will also be asked to talk about their reaction to the Terra ecosystem crash in early May, Hanguk Kyungjae reported.