Crypto News

Former Bithumb president faces 8 years in prison

Lee Jeong-hoon, the former chairman of Bithumb, one of South Korea’s top cryptocurrency exchanges, is at the center of a legal battle and could face an eight-year prison sentence, with the verdict expected for January 18, 2024.

According to local Korean media, prosecutors say Lee intended to reorganize Bithumb’s governance to profit from the exchange tokens, thereby circumventing financial regulations. The case has been going on since October 2018, when the former president allegedly defrauded 100 billion won ($70 million) during negotiations to acquire Bithumb from Kim Byung-gun, chairman of cosmetic surgery company BK Group . Prosecutors say Lee knew about the difficulties with listing BXA tokens, but did not disclose them to Kim. Despite listing issues, Lee allegedly received payments without informing Kim of the decision not to list the BXA token.

South Korean prosecutors requested an eight-year prison sentence for Lee.

Lee’s defense disputes these claims, pointing out discrepancies in Kim’s statements and questioning his reliability. Lee emphasizes Kim’s competence to run Bithumb, saying Kim was informed about the progress of the BXA token listing.

Lee faces legal issues related to charges of violating the law on aggravated penalties for certain economic crimes, particularly fraud.

Related: Bithumb plans to be first crypto exchange listed on Korean stock market: report

The ruling on Lee’s ongoing appeal could set a precedent for legal proceedings involving cryptocurrency exchanges and governance. This development coincides with Bithumb’s preparations for an IPO on Kosdaq by 2025.

The outcome of the appeal will have a significant impact on the future of Bithumb and the fate of BXA tokens. A guilty verdict could trigger a re-evaluation of governance frameworks in cryptocurrency exchanges, which could lead to increased regulatory scrutiny.

As the cryptocurrency community and investors anticipate the outcome of the appeal, the case highlights the dynamic nature of the sector and the need for well-defined regulatory frameworks to address governance issues and maintain trust between investors and cryptocurrencies. stakeholders.

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