Bithumb founder acquitted of fraud charges, avoids jail time

Bithumb founder Lee Jung-hoon, who was on trial for an alleged $70 million fraud, has been declared not guilty and sentenced to a hefty prison term.

local media reports Confirmed The executive was acquitted and avoided a possible sentence of up to eight years. On January 3, 2023, the Seoul Central District Court, presided over by Judge Kang Gyu-tae, ruled that Lee was not guilty.

Prosecutors clear Lee of $70 million charges

Prosecutors alleged that Lee stole $70 million from Kim Byung Gun. Kim amassed wealth as the head of cosmetic surgery conglomerate BK Group. However, he decided that he wanted to diversify his business interests. Thus, he is said to have bought a stake in South Korean exchange Bithumb.

The agreement was that Lee would issue a BXA token to finalize the deal. Kim reportedly paid him an advance of $70 million at this time. Despite Lee receiving Kim’s payment, the anticipated token listing, according to the allegations, never happened.

pending deal Dates all the way up to October 2018.

bithumb takeover

Bithumb in the news

“We respect the court’s decision,” the exchange said in a translated statement.

“Bithumb operates under a system of professional managers, and former chairman Lee Jong-hoon is not involved in the management of Bithumb,” the exchange said.

Ordinary investors who believed that the BXA cryptocurrency would trade on Bithumb also lost out on the failed transaction. Investors who had experienced significant losses as a result also filed fraud complaints against Lee and Kim. were kim Guilty To link a part of the down payment with the pre-sale of BXA.

However, Lee’s alleged deception during negotiations allowed Kim to avoid any sanction from the authorities. Prosecutors rejected the claim that Lee and Kim planned the sale together. He concluded that Kim was also a victim of Lee’s fraud.

Bithumb has been in the news several times, including when it was one of the South Korean exchanges targeted by national authorities for alleged connections to Terra’s Do Kwon.

A purchase arrangement A deal between FTX and the South Korean exchange was also said to be under discussion months before FTX went out of business.

disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.

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