The post Bithumb’s Former Chairman Could Face 8 Years in Prison: Report appeared on BitcoinEthereumNews.com.

In a high-profile case in South Korea’s cryptocurrency market, prosecutors have requested an eight-year prison term for Lee Jung-hoon, former chairman of Bithumb, the country’s second-largest crypto exchange. The appeal hearing, presided over by Judge Seo Seung-ryeol of the Seoul High Court, revisits allegations of a massive $85 million fraud involving the failed listing of BXA (Bithumb Coin). Lee Jung-hoon Faces Eight-Year Prison Sentence According to Korean media Decenter, The Seoul High Court has resumed the appeal hearing for Lee Jung-hoon, the former chairman of Bithumb. Following this, the prosecution has reiterated its request for an eight-year prison sentence for Lee, intensifying the legal battle over alleged fraud involving 110 billion won approximately $85 million. Lee Jung-hoon is accused of misleading BK Group Chairman Kim Byeong-gun into a fraudulent deal under the pretense of acquiring and jointly managing Bithumb, with promises of listing BXA (Bithumb Coin) on the exchange. The prosecution, challenging the acquittal from the first trial, argues that Lee intended to evade financial regulations and profit through the exchange’s coins, exploiting significant information asymmetry and misleading investors about the feasibility of listing BXA. Despite being acquitted in the first trial, where the court cited a non-binding clause in the investment agreement and found no explicit promise for coin listing, the prosecution appealed, citing Lee’s alleged intention to deceive. The prosecution argues that Lee was fully aware of the difficulties in listing BXA coins but failed to disclose these challenges to Kim, thereby intentionally misleading him. Lee’s Defense Counters Prosecution’s Claims Lee’s defense team, however, challenges the reliability of Chairman Kim’s statements, pointing out inconsistencies and noting that Kim himself had first proposed acquiring Bithumb. They also disputed the claim that Kim was unaware of the BXA Coin’s listing status, citing messages exchanged with a witness about the listing…

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Filed under: News - @ November 17, 2023 5:16 pm