On October 20, South Korean police raided the offices of software maker Hancom Inc. and the home of Hancom Group Chairman Kim Sang-chul on suspicion of manipulating the price of Arowana tokens and making slush funds. according to to local media coverage.
The Gyeonggi Nambu Provincial Police Station sent investigators to Hancom headquarters in Seongnam and Kim’s house to seize documents and digital records.
Arowana price manipulation
The seizure and raid came after speculation that Arowana token prices had skyrocketed due to price manipulation.
In April, the Arowana token was launched on the Bithumb digital asset trading platform and its price jumped from 50 KRW ($0.03) to 53,800 KRW ($37.56) in the first 30 seconds of its launch. After that, the token plummeted to 300 won.
South Korean Democratic Party lawmaker Min Byeong-deok has ordered an investigation into the token.
Hancom With, Hancom’s blockchain subsidiary, has invested in Arowana Tech, the creator of the Arowana token. Previously, multiple news outlets broke the news that Kim owns Arowana his tokens through his making (MM) contract in a secret market, and that Kim controls the tokens through his son and directs the creation of secret funds. I told you.
On the other hand, Mr. Kim is charged with embezzlement and other crimes on suspicion of making a slush fund using the profits of arowana.
In October 2021, local TV station JTBC said, “I own an arowana.” Kim also said a slush fund was created to distribute to 10 people to discuss how to make money.
Hancom later issued a statement refuting claims that Kim owned the arowana, saying that the CEO “Bad choice of words. “
Bithumb has delisted Arowana and suspended trading on October 26, 2021.
Meanwhile, Lee Jong-hoon, the former chairman of Bithumb, was summoned to testify as a witness in the National Assembly’s ongoing investigation into arowana price manipulation, but did not appear. As a policy, I summoned him again on the 24th and made him testify.
