- Chairman of the Hancom Group Kim Sang-cheol faces elevated scrutiny over allegations of market manipulation.
- Kim was handed over to South Korean prosecutors following a collection of investigations and raids that started in 2021.
- The information revealed Kim's involvement in organising a secret slush fund.
Hancom Group software program firm chairman Kim Sang-cheol is below investigation for allegedly elevating tens of billions of Korean gained in unlawful funds utilizing Arowana (ARW) tokens. South Korean prosecutors at the moment are wanting into the case after a collection of investigations and raids that started in 2021.
The Arowana token is linked to Hancom With, the blockchain subsidiary of Hancom Group. Experiences counsel that the blockchain agency has made a big funding in Arowana. The token was launched on South Korean crypto change Bithumb on April 20, 2021. Inside half-hour, the worth of ARW soared from 50 gained to 53,800 gained, a 1,075-fold bounce.
Issues and accusations of market manipulation
The token's beautiful rise has raised considerations about market manipulation. Though Hancom, Arowana and Bithumb have denied the allegations, native police have launched an investigation. As well as, Kim was accused of embezzling large funds by means of the token.
In October 2021, leaked telephone calls allegedly revealed Kim's involvement in organising a secret slush fund. The recordings reportedly contained proof of Kim claiming possession of Arowana by means of a secret contract. Nevertheless, Arowana disputed the allegations, claiming that the decision recordings have been manipulated and edited with malicious intent.
South Korea's Cryptocurrency Guidelines Tightening
The investigation continued as South Korea strengthened its regulatory framework. Just lately, the nation handed its first regulation to guard customers in opposition to unlawful crypto actions. The nation's Monetary Supervisory Service (FSS) plans to implement strict rules utilizing a joint response system to deal with rising crypto threats.
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As well as, the Monetary Companies Fee (FSC) licensed the Digital Asset Safety Basis, a company created to guard buyer belongings, significantly within the occasion of an change failure. The muse will make sure the profitable return of belongings to prospects even within the occasion of a inventory market collapse.
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