Bithumb will be providing investment and technical support for the American security token exchange project.  Photo: AFP
The South Korean crypto exchange Bithumb is the focus of an ongoing police investigation. Photo: AFP

The chairman of a South Korean crypto exchange has been summoned by police for interrogation, Cointelegraph reports, citing state-run news agency Yonhap.

The Seoul Metropolitan Police Agency wants to talk to Lee Jung-hoon, chairman of the board at Bithumb Korea and Bithumb Holdings, which are the focus of an ongoing fraud investigation.

Lee is accused of multiple fraud and embezzlement offenses relating to the failed listing of the BXA token. The purported fraud caused investor damages of up to 30 billion won ($25 million), according to the Yonhap report. The police also want some answers regarding the alleged embezzlement of investors’ funds in overseas property purchases or offshore investments.

According to Yonhap, Kim Byung-gun, another chairman at Bithumb, is accused of being involved in the BXA fraud alongside Lee. However, the police have not yet initiated a probe into Kim.

The latest news comes shortly after Seoul police reportedly seized a number of shares in Bithumb Holdings belonging to Lee. The exec reportedly failed to acquire Bithumb, and has been sued in the process.

Local police have so far conducted two raids on Bithumb’s offices in connection with the alleged fraud in September.

Read: Police raid Seoul crypto exchange