'Bithumb Affiliate Embezzlement' Kang Jong-hyun's Detention Period Extended by 6 Months

The detention period of businessman Kang Jong-hyun (41), who is accused of embezzling funds from an affiliate of the virtual asset exchange Bithumb and manipulating stock prices, has been extended by six months.

According to the court on the 21st, the Criminal Division 12 of the Seoul Southern District Court (Chief Judge Dang Woo-jeung) reissued an arrest warrant on the 17th for Kang on charges including instructing evidence destruction. As a result, Kang's detention period has been extended by six months.

[Image source=Yonhap News]

Kang was detained and indicted on February 20 on charges of violating the Capital Markets Act. Ahead of the expiration of the arrest warrant on the 19th, the prosecution re-requested the warrant on additional charges including instructing evidence destruction.

At the hearing for the issuance of the arrest warrant held on the 14th, Kang's side stated, "I have been regularly visiting the hospital and taking medication for underlying conditions such as panic disorder," and added, "If allowed to stand trial without detention, I will recover my health and sincerely participate in the trial and investigation."

The prosecution rebutted, saying, "Many other defendants also claim similar symptoms, but detention decisions are not made solely based on health conditions," and "It is hard to believe the defendant's claim considering he was the chairman of a large company until recently."

Kang was detained and indicted in February on charges including embezzling approximately 62.8 billion KRW during company operations until September last year, violating disclosure obligations, and making false disclosures related to changes in holdings of convertible bonds (CB). Suspicions arose that Kang is the actual owner of InvioGen and Bucket Studio, where his younger sister Kang Ji-yeon serves as CEO, making him a key figure in the embezzlement case involving Bithumb affiliates.

In March, Kang was additionally indicted on charges of instructing an employee to destroy evidence in preparation for a search related to stock price manipulation suspicions and helping another employee managing a nominee account to flee.

This content was produced with the assistance of AI translation services.