Bithumb ex-chair could face up to 8 years in prison in South Korea
Lee Jeong-hoon was acquitted of his fraud charges earlier this year, but prosecutors have appealed and want him jailed for the alleged $78 million Bithumb fraud.
Lee Jeong-hoon was acquitted of his fraud charges earlier this year, but prosecutors have appealed and want him jailed for the alleged $78 million Bithumb fraud.
Bithumb is reshaping its position as a digital currency exchange with plans to go public in South Korea in 2025, enlisting Samsung Securities as its underwriter.
The arrest of a former Coinone worker suspected of accepting bribes sparks a wide-scale investigation of leading digital currency exchanges in South Korea.
The investigations follow a police raid on Bithumb CEO Lee Sang-jun's private residence and Bithumb's office complex in search of any incriminating evidence.
Bithumb owner Kang Jong-hyun denied accusations he embezzled over KRW60 billion from the company while his brother is being investigated for potential involvement in the case.
The prosecutors raided the Bithumb's offices to gather evidence on the allegations of price manipulations relating to local tokens Pixel Coin and GoMoney2.
South Korean authorities say Kang Jong-Hyun was involved in stock price manipulation in Bithumb's affiliate companies like Vident, Bucket Studio, and Inbiogen using convertible bonds.
The Supreme Court has ordered Bithumb to pay KRW251.4 million (US$202,400) to over 100 disgruntled investors, with each of the 132 customers to receive between $6.47 to $6,470 as part of the court’s ruling.
The South Korean National Tax Service believes that Bithumb may have been engaged in tax evasion, an offense punishable by imprisonment or payment of fines.
The court's decision to absolve Lee Jung-Hoon comes a week after Bithumb's biggest shareholder was found dead while under investigation for embezzlement and stock price manipulation.
The massive losses incurred by investors over Bithumb's failure to list BXA tokens and acquire BK Group warrants an eight-year prison term for the former's de facto chairman, the prosecution says.
After a years-long deliberation, former Bithumb chairman Lee Jeong-hoon won his lawsuit in Singapore against BK Medical Group chief Kim Byung-kun, who is now mandated to return proceeds from BXA sales.