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The Seoul High Court Prosecutor's Office has requested an eight-year prison sentence for former Bithumb exchange chairman Lee Jong-hoon, who has been charged with economic crimes.
The former chairman of the South Korean cryptocurrency exchange Bithumb Lee Jeong-hoon is accused of fraud, causing damage worth more than 110 billion won (more than $85 million), as well as deceiving the investor — chairman of BK Group Kim Byung-gun.
According to the investigation, Lee Jong-hoon suggested that the head of the cosmetics company BK Group invest in a cryptocurrency exchange, and then take part in the joint management of Bithumb. As financial security for future cooperation, Lee Jong-hoon guaranteed the additional issue and transfer of BXA Coin exchange tokens to BK Group in the equivalent amount of investment.
The prosecution claims that Lee was aware of the existing problems with the BXA token listing, but deliberately concealed this information from Kim. In addition, prosecutors are convinced that Lee's plan to restructure Bithumb's business was initially aimed at making illegal profits.
The defense team disputes the charges and refers to the fact that Lee fulfilled all obligations as a seller, as well as extended the payment period for tokens on demand. In their opinion, Kim unexpectedly decided to withdraw from the deal by filing a fraud claim in court.
The Seoul High Court is expected to issue a verdict in the Bithumb case on January 18, 2024. The court's decision may lead to a reassessment of the governance structures of South Korea's cryptocurrency exchanges, as well as change the policy and practice of exchanging crypto assets.
Earlier, the Bithumb exchange notified the public about plans to enter KOSDAQ, the South Korean equivalent of the Nasdaq stock exchange, in 2025, with an initial public offering of shares.
The former chairman of the South Korean cryptocurrency exchange Bithumb Lee Jeong-hoon is accused of fraud, causing damage worth more than 110 billion won (more than $85 million), as well as deceiving the investor — chairman of BK Group Kim Byung-gun.
According to the investigation, Lee Jong-hoon suggested that the head of the cosmetics company BK Group invest in a cryptocurrency exchange, and then take part in the joint management of Bithumb. As financial security for future cooperation, Lee Jong-hoon guaranteed the additional issue and transfer of BXA Coin exchange tokens to BK Group in the equivalent amount of investment.
The prosecution claims that Lee was aware of the existing problems with the BXA token listing, but deliberately concealed this information from Kim. In addition, prosecutors are convinced that Lee's plan to restructure Bithumb's business was initially aimed at making illegal profits.
The defense team disputes the charges and refers to the fact that Lee fulfilled all obligations as a seller, as well as extended the payment period for tokens on demand. In their opinion, Kim unexpectedly decided to withdraw from the deal by filing a fraud claim in court.
The Seoul High Court is expected to issue a verdict in the Bithumb case on January 18, 2024. The court's decision may lead to a reassessment of the governance structures of South Korea's cryptocurrency exchanges, as well as change the policy and practice of exchanging crypto assets.
Earlier, the Bithumb exchange notified the public about plans to enter KOSDAQ, the South Korean equivalent of the Nasdaq stock exchange, in 2025, with an initial public offering of shares.
