The fact that the CEO was arrested means the reputation of that exhange was surely dragged down. The South Korean authorities have not provided additional information regarding the case but since the rumours about the tax evasion and embezzlement were announced online, those who have their crypto coins on that exchanged surely pulled out already their assets.

I still believe that the  impact on users will depend on the outcome of the said Bithumb CEO legal case and the financial stability of the exchange. However, always remember to be careful whenever we store our assets to this kind of exchange as it is always vulnerable to some conflicts and problems like this in the future.