On the basis of allegations of fraud of over $70 million, the owner of the South Korean cryptocurrency exchange Bithumb, Lee Jung-hoon, is being sought by South Korean prosecutors for a term of eight years in jail, as reported by local media outlet YNA.
In October 2018, Lee offered to BK Group Chairman Kim Mo that he purchase Bithumb. He then tricked Kim Mo into issuing a so-called “Bithumb Coin” (BXA) and listed it on Bithumb. Lee has since been turned over to trial on accusations of stealing around $78 million as a down payment.
It was discovered that Kim had faith in Lee’s assertions and had utilized a portion of the money he received from the pre-sale of BXA to pay for the acquisition of his interest in Bithumb. Despite this, BXA was not listed on Bithumb, and Kim’s attempt to acquire Bithumb was unsuccessful.
The prosecution is saying that the level of damage is quite big, and they further emphasized that this amount of harm is particularly great for regular coin investors.
In his closing argument, Lee made an appeal, claiming that at the time of the transaction, the Bithumb exchange was the most successful one in Korea. He went on to explain that he is really sorry for making things difficult for staff and for imposing societal pressure.
On the other hand, the attorney representing Lee maintained that the contract had been properly carried out in accordance with the standard process, but that Kim had sued Lee in order to evade criminal responsibility for the investment victims. According to the report, the hearing about the sentence will take place in the afternoon of December 20th, 2022.
