Prosecutors are blaming Bithumb owner Lee Jung Hoon on $ 88 million fraudulent charges after an unsuccessful controversy over the listing of altcoin tokens – and could also face a civil lawsuit from Hong Kong investors.

Prosecutors accuse Bithumb owners of $ 88 million fraud fee

Yonhap said the country’s prosecutors decided to bring a case that began as a civil action brought by a group of investors to the police. As early as 2018, the BK Group tried to take over Bithumb and should list the team’s BXA token on their platform. However, despite Bithumb’s initial claims, this listing never took place, causing the value of the token to decline.

BK Group chairman Kim Byung-gun has since been embroiled in a bitter battle with Lee. The former is said to have used the money from the BXA token presale to fund the takeover bid, which eventually collapsed with the loss of payments to BK. Bithumb has been looking for buyers since last year, with Lee looking to get out of the crypto exchange scene. Lee was brought up for questioning by police after raids on Bithumb headquarters last September.

Police are also investigating Kim’s role in the matter after a group of investors also brought charges against him. However, the public prosecutor decided not to indict the police chief of the BK, but decided that he was probably also a “victim of deception” in the case.

A branch office of the Seoul District Court upheld the charges, which will now be heard on an unannounced date. However, the court ruled that despite the high level of the alleged fraud, prosecutors did not detain Lee because the Bithumb owner “faithfully attended the investigative hearing” and paid the capital gains tax on time.

Meanwhile, in Hong Kong, civil lawsuits for “breach of contract” could be filed against two Bithumb subsidiaries, the Korea Times reported, with “top executives charged.”

The media company quoted a former Bithumb partner in Thailand as saying that a Hong Kong law firm called Prince’s Chambers was preparing to file a lawsuit within the month of Bithumb’s decision to “unilaterally shut down” operations in Thailand last year.

The former partner said Bithumb had “no real intention of building an exchange in Thailand” and “made empty promises from the start” to “sell BXA by exaggerating the company’s overseas presence”.

Learn more about Bithumb

Bithumb is one of the largest cryptocurrency exchanges in South Korea, founded in 2013 by a company called BTC Korea.com Co. Ltd and is headquartered in Korea. It is also one of the oldest stock exchanges in the country.

Since its inception, Bithumb has grown into one of the largest exchanges in the world in terms of daily trading volume.

Bithumb also offers accounts for institutional investors, which is one of the reasons for such high trading volume. This is very important as it ensures that there is always enough liquidity in the market to execute trades.

The founders designed the Bithumb platform so that it could be used by anyone, which means that it is very user-friendly and perfect for beginners. Although the majority of their dealers are from Korea, the site also supports English, Chinese, Japanese, Spanish, and even Hindi

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