SEONGNAM, South Korea, Oct. 20 (Yonhap) — Prosecutors on Thursday raided software maker Hancom and the home of its chairperson, Kim Sang-chul, on suspicions he manipulated the price of the firm’s cryptocurrency Arowana and created slush funds, officials said.
The Gyeonggi Nambu Provincial Police Station sent investigators to Hancom’s headquarters in the city of Seongnam, just south of Seoul, and Kim’s house to confiscate documents and digital records related to the cryptocurrency, according to police officials.
Kim has been facing charges, including embezzlement, over allegations that he created slush funds via Arowana, a Bithumb-listed cryptocurrency, where Hancom With, Hancom’s blockchain arm, holds shares.
Market manipulation allegations were raised against him after the price of Arowana shot up to 53,800 won (US$37.56) from its starting price of 50 won in the first 30 seconds upon its debut on the Bithumb digital asset trading platform in April last year.
Hancom has denied such allegations.