South Korean court finds former Chairman of Bithumb ‘not guilty’ of fraud

Hull Invest

On January 3, a South Korean court acquitted Lee Jong-hoon, the former chairman of cryptocurrency exchange Bithumb.

According to local news, the Seoul Central District Criminal Agreement Section 34 ruled that the evidence presented was insufficient to convict Jong-hoon. report.

Jeonghoon was indicted on suspicion of violating the Act on Aggravated Punishment of Specific Economic Crimes for fraud and other crimes.

Following the ruling, Bithumb said it respects the court’s decision. However, Bithumb is now under a “professional management system” and Jonghoon clarified that he is not currently involved in managing the exchange.

On December 30, 2022, Vidente Vice President Park Mo — Bithumb’s largest shareholder — was found dead. report.

After Mo was named as the prime suspect in an investigation launched by South Korean prosecutors, he is suspected of taking his own life. Prosecutors were investigating Mo on suspicion of involvement in stock price manipulation and embezzlement of funds at Bithumb-related companies.

Failed Bithumb Acquisition Resulting In Years Of Controversy

Cosmetic Surgeon Kim Byung Gon, Founder and Director of BK Hospital and BK Medical Group in South Korea Singapore discussed jointly acquiring Bithumb with Jung-Hoon in 2018. The two partnered to form the BTHMB consortium in Singapore, acquiring a 50% stake in Bithumb.

Byung-gun allegedly paid $70 million in “contract fees” to Jung-Hoon, who promised that Bithumb would list BXA tokens issued by the BTHMB consortium. Jung-Hoon allegedly persuaded Byung-gun that he would pay for the remaining amount needed to complete the acquisition of Bithumb with proceeds from the list of tokens.

The BXA token was not listed and the acquisition deal collapsed as the BTHMB consortium was unable to pay the remaining amount.

2019, Jung-Hoon sued Byung-gun in a Singapore civil court, accusing him of selling BXA tokens on his behalf without his permission. In 2020, Byung-gun sued the former Bithumb chairman for defrauding him of $70 million.

In August 2022, the Singapore courts will found Byung Gon Guilty ordered He asked the BTHMB consortium to return the proceeds from the BXA sale (approximately $17 million).

In the case against Jung-Hoon, South Korean prosecutors had sought a sentence of eight years in prison. Byung-gon has a fair amount of knowledge in the cryptocurrency and blockchain space, so it’s unlikely that Jong-hoon could have convinced him that BXA’s listing on Bithumb would cover Bithumb’s acquisition costs.

South Korea’s acquittal of Jung-Hoon marks the end of the long-running legal battle over Bithumb.

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