Former Bithumb Chairman Faces Eight-Year Sentence for Economic Crimes
Prosecutors are seeking an eight-year prison term for former Bithumb Chairman Lee Jung Hoon, who is accused of violating economic laws. The Seoul High Court’s 5th criminal division recently held an appeal hearing on the charges against Lee. He allegedly caused damages amounting to 110 billion won by deceiving BK Group Chairman Kim Byung-gun with false promises related to Bithumb and BXA (Bithumb Coin).
Initially, the prosecution sought an eight-year sentence for Lee, but he was acquitted in the first trial. However, the prosecution disagreed with the verdict and filed an appeal. According to the prosecution, Lee planned to change Bithumb’s management structure to avoid financial regulation and profit from coin exchanges.
“The defendant planned to change the management structure to one in which a foreign company controls Bithumb in order to avoid regulation by financial authorities and make a profit by exchanging coins.”
Prosecution statement
Arrest of Former Bithumb Chairman for Embezzlement and Fraud
In February, South Korean authorities arrested the former chairman of the Bithumb crypto exchange on suspicion of embezzlement and fraud. It was revealed that Kang Jong Hyun is the actual owner of Bithumb and has close ties to the exchange. Investigators also found that Kang’s sister and brother were involved in misappropriating funds from the cryptocurrency exchange and assisting him in fraudulent activities related to shares.
Hot Take: Allegations Against Former Bithumb Chairman Highlight Crypto Exchange Challenges
The case against former Bithumb Chairman Lee Jung Hoon sheds light on the challenges faced by crypto exchanges in terms of regulatory compliance and internal governance. The allegations of deception, embezzlement, and fraudulent activities underscore the importance of transparency and accountability within the crypto industry. This case serves as a reminder for both investors and industry players to conduct thorough due diligence before engaging with crypto exchanges or investment opportunities.
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