Bithumb Founder Lee Jung-hoon Escapes Lengthy Prison Sentence

Lee Jung-hoon, the founder of Bithumb, was found not guilty and spared a lengthy prison sentence. He was accused of scamming $70 million.

According to Local media sources report that the executive was declared innocent and avoided a possible eight-year term. Judge Kang Gyu-Tae of the Seoul Central District Court decided to find Lee not guilty on January 3, 2023.

According to the prosecution, Lee defrauded Kim Byung Gun of $70 million. Kim accumulated money while serving as the CEO of the cosmetic surgery firm BK Group. But he decided to broaden his commercial pursuits, which led to claims that he had purchased stock in the South Korean exchange Bithumb.

To close the trade, Lee was supposed to issue a BXA token. He reportedly received an upfront payment from Kim of $70 million at this time, and Lee received Kim’s cash. However, the alleged charges state that the anticipated coin listing never occurred.

The disputed transaction began back in October 2018.

Information About Bithumb

We appreciate the court’s decision; The translation of the statement is as follows.

Bithumb is operated under a system of professional managers, and former Chairman Lee Jeong-hoon is not involved in the management of Bithumb, the exchange added.

The botched transaction also resulted in losses for regular investors who had anticipated that the BXA coin would trade on Bithumb. As a result, investors who had sustained significant losses also reported Lee and Kim for fraud. Kim charged with combining BXA pre-sale and part of down payment.

Kim was able to dodge any punishment from the authorities, thanks to Lee’s alleged dishonesty during the discussion. The prosecution denied the claims that Lee and Kim had arranged the sales together, and they concluded that Lee’s deception also affected Kim.

Media has reported on Bithumb’s alleged connections to Terra’s Do Kwon and South Korean authorities targeting the exchange.

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