Bithumb’s Ex-Chairman Sentenced to Eight Years in Prison for $85 Million Fraud

Bithumb's Ex-Chairman Sentenced to Eight Years in Prison for $85 Million Fraud

Former Bithumb Chairman Faces Eight-Year Prison Sentence

South Korean prosecutors have requested an eight-year prison sentence for Lee Jung-hoon, the former chairman of Bithumb, the country’s second- largest digital currency exchange. The charges involve violations of laws and regulations related to economic crimes, in particular  fraud. The prosecution states that Lee deceived BXA (Bithumb’s native coin) by falsely promising co-management and listing assistance to BK Group Chairman Kim Byung-gun.

Bithumb Scandal Deepens

The prosecution alleges that Lee’s actions resulted in around $85 Million in damages. They argue that he planned to shift the control of Bithumb to foreign corporations to take advantage of the exchange’s digital currency while evading financial regulations. The prosecution further claims that Lee possessed whole lot of information imbalances and “intentionally passed” on numerous dangers to the co-acquirer.

Crypto Analyst Forecasts Solana (SOL) Price to Skyrocket to $90

During the trial, the prosecution emphasized that Lee was aware of the difficulties in listing the BXA coin but failed to inform the victim, intentionally omitting details regarding the challenges and presenting misleading information during the contract negotiations. The defense, on the other hand, argues that there are inconsistencies in the victim’s statements and notes that that the victim at the beginning proposed the acquisition of Bithumb.

Lee Jung-Hoon’s Final Plea

In his final statement, Lee regretted the situation, stating that he believed President Kim would lead the company well and assist it grow. He claimed to have acted in good faith as a seller and requested an extension to fulfill his obligations but was unexpectedly sued. The trial for Lee Jung-hoon is set to continue, with the appeal scheduled for January 18 next year. This case is one between plenty of scandals involving Bithumb executives. Notably, the owner of Bithumb, Kang Jong-hyun, was likewise recently arrested on charges of embezzlement and stock manipulation.

Trader Warns About Altcoin with 900% Monthly Surge, Reveals Solana and Avalanche Price Targets

South Korea Cracks Down on Cryptocurrency-Related Crimes

Authorities have been working to sustain integrity and security within the industry of digital currency by cracking down on cryptocurrency-related crimes in South Korea. In addition, the present total market capitalization of the digital currency market is $1.342 trillion, with a 64.81% increase year-over-year, indicating the industry’s long-term upward trajectory. Bitcoin (BTC) remains the dominant force in the market, with a market capitalization of $709 billion, accounting for 49.59% of the total market cap, according to CoinGecko.

Featured image from Shutterstock, chart from

Crypto Expert from Bitwise Forecasts Major Rally in Next Six Months

Hot Take: The Future of Digital currency in South Korea

The prosecution’s request for an eight-year prison sentence for Lee Jung-hoon and the crackdown on cryptocurrency-related crimes in South Korea indicate a growing determination by authorities to sustain integrity and security within the industry. The scandals involving Bithumb executives and the ongoing legal battles underscore the challenges faced by digital currency exchanges in the country. Regardless of this, the industry’s long-term trajectory shows a promising future, evidenced by the whole lot of year-over-year increase in market capitalization. As regulatory efforts continue, South Korea’s role in shaping future of the digital currency will be closely watched by the worldwide market.

Ethereum Competitor with Over 500% YTD Growth Set to Surge Again, Predicts Top Cryptocurrency Analyst
Author – Contributor at | Website

Bitro Conwell stands as an intellectual architect, weaving together the roles of crypto analyst, meticulous researcher, and editorial virtuoso with finesse. Amidst the digital intricacies of cryptocurrencies, Bitro’s insights resonate harmoniously with seekers of all stripes, showcasing a profound understanding. His ability to untangle the most complex threads within the crypto landscape seamlessly pairs his their editorial finesse, transforming intricacy into an artful tapestry of comprehension.

Will Avalanche’s Premium Payment to Validators Drive AVAX Price to $145?
Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.

Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!

Email me the hottest Crypto news!

Latest Crypto News

Share via
Share via