BitHumb has been cleared by local authorities after a three months long investigation according to local news provider eToday. Bithumb right now is the largest cryptocurrency exchange in South Korea and the seventh largest in the world by trade volume, according to Coinmarketcap.

The purpose of the inspection was a possible tax evasion, as the exchange has managed a 171-fold increase in profits within a 12-month period. Multiple government agencies took part in the investigation including the National Tax Service (NTS), Financial Services Commission (FSC) and Korea Financial Intelligence Unit (KFIU).

As a starting point, many assets of the exchange had been seized, including computer files and devices where these files were stored on. The current audit took almost 6 months as the fact-finding started on the 10th of January, however, the authorities had been investigating the exchange continuously. The agencies did not find any evidence linked to illegal activities like tax evasion, fraud or malpractices, nevertheless the government ordered the exchange to pay a 30 billion won (approximately $28 mln) in taxes according to a NTS spokesperson:

“NTS initiated several investigations into Bithumb between 2014 and 2017, and over the past four years, Bithumb has continuously paid all of the taxes imposed to the company without any conflict with the NTS. While a $28 million tax was imposed onto Bithumb, no evidence tax evasion and illicit activities was shown and the NTS closed the investigation into Bithumb officially, clearing the company.”