Former Bithumb Chairman Tried Innocent In The First Trial For The $70 Million Fraud

January 3, 2023 - Around 3 mins mins to read

Key Points:

In the first instance court today, the Former Bithumb Chairman tried innocent.
The court judged that it was difficult to determine that former Chairman Lee promised Chairman Kim to list BXA Coin based solely on the evidence presented by the prosecution.
Foreign investors like JP Morgan will likely push to repurchase Bithumb after removing the complicated governance factor and owner’s risk.

Lee Jung-hoon, Former Bithumb Chairman tried innocent in the first trial for the $70 million fraud, according to Korean media.

Former Bithumb Chairman Tried Innocent In First Trial Of Scam Of $70 Million — Lee Jeong-hoon, former chairman of the board of directors of Bithumb Korea, will leave after attending the first trial held at the Central District Court in Seocho-dong, Seoul on the afternoon of the 3rd.

As mentioned in an earlier Coincu News article, the Former Chairman of Bithumb will be sentenced at first instance for a $70 million scam today.

During the trial held this afternoon, the 34th Criminal Agreement Division (Chief Justice Kang Gyu-tae) of the Seoul Central District Court acquitted Lee, who was charged with fraud and other crimes under The Specific Economic Crimes Aggravation Act.

Previously, in October 2018, former Chairman Lee suggested that BK Medical Group Chairman Kim Byeong-gun take over Bithumb and co-manage, issue the so-called “Bithumb BXA Coin”, and deceive that it will be listed on Bithumb and receive about $100 million as a prepayment (at the exchange rate at the time. In July 2021, he was prosecuted without detention by the prosecutor’s office with the crime of stealing about 110 billion won).

Prosecutors asked Lee for eight years in prison, but the court acquitted him today.

The court judged that it was difficult to determine that former Chairman Lee promised Chairman Kim to list BXA Coin based solely on the evidence presented by the prosecution.

“There was a rule regarding the obligation to list coins in the draft contract, but it was removed during the revision process.” The judge said

He also said, considering that Chairman Kim has considerable experience and relevant knowledge in the virtual asset industry, it is likely that he would only believe the words of former Chairman Lee.

Regarding the ruling, it is estimated that Bithumb is one step closer to restoring trust.

This is because Bithumb’s new business could accelerate as the owner’s risk to Lee, who is assessed as the actual owner of Bithumb, has been partially resolved.

In fact, in 2021, foreign investors like JP Morgan pushed for the acquisition of Bithumb, but it was canceled due to complicated governance and owner risk.

However, when the court sided with Bithumb that day, it gained momentum in expanding overseas through its subsidiary Bithumb Meta.

In addition, it is analyzed that Bithumb’s strategy of entering content and entertainment markets, such as NFT-based music and sports, in the domestic market has gained some strength.

On the other hand, Bithumb said in a statement:

“We respect the court’s ruling(…). Bithumb is operated under a professional management system, and former Chairman Lee Jeong-hoon is not involved in the management of Bithumb at all. Regardless of the outcome of the test, Bithumb will continue to strive to provide the best service for more convenient and secure transactions.”

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Former Bithumb Chairman Tried Innocent In The First Trial For The $70 Million Fraud

Key Points:

In the first instance court today, the Former Bithumb Chairman tried innocent.
The court judged that it was difficult to determine that former Chairman Lee promised Chairman Kim to list BXA Coin based solely on the evidence presented by the prosecution.
Foreign investors like JP Morgan will likely push to repurchase Bithumb after removing the complicated governance factor and owner’s risk.