South Korean prosecutors have requested an arrest warrant for Kang Jong-hyun, chairman and owner of cryptocurrency exchange Bithumb, on charges of embezzlement related to his activities at the exchange, Cointelegraph writes.

The Seoul Southern District Prosecutor’s Office sentenced Kang and 2 other Bithumb executives on charges of embezzlement and breach of customer trust under the Act on Enhanced Punishment for Specific Economic Crimes, and they were also charged with conducting fraudulent transactions under the Capital Markets Act.

One of the country’s largest crypto exchanges has come under the scrutiny of investigators over allegations of embezzlement by management.

Bithumb has been subjected to a special tax investigation by the Korean National Tax Service. At the same time, Kang is under investigation for allegedly manipulating the stock prices of Inbiogen and Bucket Studio, Bithumb’s subsidiaries, by issuing convertible bonds.