Prosecutors in South Korea have launched an investigation of Bithumb, one of the country’s largest cryptocurrency exchanges, over claims that corporate resources were wrongly used to help a former director buy an apartment.

Officials from Seoul Southern District Prosecutor’s Office Raided Bithumb’s headquarters in Yeoksam-Dong and elsewhere Wednesday. According to the local media report.

Wu Blockchain reported that some projects had paid up to $ 10 million in fees to list their tokens on Upbit and Bithumb.

The probe focuses on accusations that Bithumb delivered a 3 billion krw ($ 2 million) security deposits for an apartment rental in Seongsu-Dong, Seoul, to Kim Dae-SIK, the company’s former CEO and current adviser.

The Economic Supervisory Service, South Korea’s financial regulator, initially reviewed the case before forwarding it to prosecutors. In a speech with Chosun Daily, a Bithumb spokesman recognized that some of the claims were correct, adding that Kim repaid the loan amount throughout theirs after securing a loan.

Bithumb has been exposed to several legal challenges in recent years, including tax trials and a RAID related to a price manipulation probe. Its latest challenge comes when the company was reported to consider specifying shares on NASDAQ.

Bithumb was not immediately available for comment when he was contacted by Coindesk.

Disclaimer: Information collected for this article was translated with the use of artificial intelligence.

Update (March 20, 12:33 UTC): Adds further Details and background.