Former Bithumb Chairman Faces 8 Years in Prison
Date: 2023-11-21 Author: Dima Zakharov Categories: IN WORLD
Allegations and Potential Consequences
Lee is accused of attempting to manipulate Bithumb’s management system to profit from coin exchanges, bypassing financial regulations. Prosecutors claim he was aware of issues with listing BXA Coin but failed to report them, allegedly receiving payments despite deciding not to list BXA Coin.
Legal Proceedings
The South Korean prosecutors have demanded an eight-year prison term for Lee Jong-Hun. Lee’s defense challenges these claims, pointing out inaccuracies and questioning the reliability of the prosecutor’s statements.
Fraud Charges and the BK Group Connection
Lee faces legal troubles related to charges of violating the law on the toughening of penalties for certain economic crimes, particularly fraud. The accusations involve an alleged fraud of 110 billion won with BK Group Chairman Kim Byung-Gon, where Lee provided Kim the opportunity to acquire and jointly manage Bithumb.
Potential Precedent for Crypto Exchanges
Lee’s appeal decision could set a precedent for legal proceedings involving cryptocurrency exchanges and management. This development coincides with preparations for Bithumb’s Initial Public Offering (IPO) on Kosdaq, South Korea’s version of Nasdaq, expected in the second half of 2025.
Bithumb’s IPO Plans
Bithumb, reportedly gearing up for its IPO, has chosen Samsung Securities as a potential underwriter. While Bithumb has not confirmed the IPO, selecting an underwriter suggests strategic moves in the financial landscape.
