Former Bithumb President Will Be Sentenced To First Instance For Scam Of $70M Today

Key Points:

• The former Bithumb President will be pleased this afternoon local time.
• He previously received allegations of fraud of 100 billion won (about 70 million US dollars) with the listing of BXA Coin.
• If the charges are established, he could face up to eight years in prison.

As reported by Korean media E-Daily, the First Trial Sentence for the fraud of 110 billion won (about $70 million) of The former Bithumb President, Lee Jung-hoon, known for his as the actual owner of Bithumb, a virtual asset exchange, will be launched today.

According to the legal community, on the 3rd, the 34th Criminal Agreement Division of the Seoul Central District Court will set a sentencing date for former Chairman Lee, who was brought to trial on charges of violating the Aggravated Punishment for Economic Crimes Act at 2:00 pm on the same day (local time).

It is known that in October 2018, when Lee Jung-hoon and the Chairman of BK Group, Kim Byung-gun were negotiating the sale of Bithumb shares, Kim Byung-gun, after hearing that Lee Jung-hoon would list BXA (Bithumb token) on Bithumb, used part of the proceeds from the BXA pre-sale to buy shares. Bithumb shares, but BXA is not listed on Bithumb, and BK Group’s acquisition of Bithumb is still ongoing.

Prosecutors believe that during the contract process, former chairman Lee launched a business to raise funds by listing BXA coins and forming an alliance between exchanges, avoiding Korea because here ICO is prohibited.

During this process, former Chairman Lee told Chairman Kim, “If you pay only part of the purchase price, you can issue and sell coins to pay the rest.” Still, the prosecutor was found to have deceived Chairman Kim even though he had no intention or ability to issue or sell assessed coins.

As a result of the investigation, former chairman Lee posted a notice saying, “BXA Coin is expected to be listed,” but stopped the listing process due to regulations of financial authorities and self-delisting when suspected collusion.

In July, he was put on trial on charges of embezzlement totaling 112 billion won ($98 million), including receiving balances of bonds and stocks without notifying Chairman Kim about the listing failure.

Former Chairman Lee denied that Chairman Kim’s side proposed the acquisition of Bithumb first, and there was no promise of listing BXA Coin in the final contract document.

At the final trial on October 25, the prosecution said: “The damage to ordinary coin investors is enormous. The defendant continues to deny the poor quality crime, so it is necessary to pronounce a heavy sentence.”

If the charges are established, he could face up to eight years in prison.

As updated in a previous Coincu News article, a suspect was found dead while being evaluated by the prosecution on charges of embezzlement and stock price manipulation of the cryptocurrency exchange ‘Bithumb affiliates’.

The person in question is Park Mo, vice president of Vident, a holding company of Bithumb, who committed suicide by jumping from a building in the early morning of December 30 (local time). It is said that while serving as vice president of Vident, Park was in charge of accounting under Mr. Kang’s brother and sister, who claimed to be the chairman of Bithumb.

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