HomeNEWSFormer Bithumb Chairman likely to bag 8years jail term

Former Bithumb Chairman likely to bag 8years jail term

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Emerging reports from Korea reveal that prosecutors are pushing for the conviction of former Bithumb Chairman, Lee Jung-hoon. South Korean news agency, Yonhap reports that the prosecutors are seeking an eight years jail term for the former chairman.

These prosecutors are standing on the ground of the fraud case relating to the sale of BXA coins. Recall that the sales of the token are related to the move by BK Group in Singapore to purchase Bithumb in 2018. As part of the deal then, Lee sold BXA tokens worth about $25 million to the BK group. The chairman sold the coins to investors for $45 million.

Further, the fraud attached to the deal is that Bithumb had not listed the token before selling it. Eventually, investors allegedly lost their funds because the cryptocurrency exchange didn’t list he BXA coin. The controversies surrounding the deal led to a lawsuit involving Lee and the chairman of BK Group, Kim Mo.

With the lawsuit, the investors accused Lee and Kim Mo for gaining money from them through fraudulent means. However, Kim became vindicated as the the court establish that the chairman is also a victim like other investors involved in the takeover deal. Ever since the former of Bithumb chairman has been within the watchful eyes of law enforcement agencies in South Korea.

In the latest developments, prosecutors prayed to the court that Lee should serve jail terms. The prosecutors made reference to South Korea’s Act the Aggravated Punishment of Specific Economic Crimes. During a court hearing at the Seoul Central District Court, allegations surfaced that the damage is severe to investors and that the court must consider a larger punishment for the former chairman of Bithumb.

Additionally, Lee’s Defense dislodged the accusations. The Defense opposed that the coin sale is similar to a typical stock stake contract. The Defense established that the former chairman of Bithumb did everything with plain intention. Meanwhile, the sentencing hearing will take place on December 20, 2022.

Previous Court order on the allegations before the Former Bithumb Chairman

In August, the case took a different dimension after a long year of drama and controversies. Then, a court in Singapore ruled against Kim Byung-gun for selling BXA coins without the approval of Lee.

Previously, Kim Byung-gun accused Lee, the former chairman of Bithumb for defrauding him. Now, the previous court ruling could prove decisive in Lee’s favor following the efforts of prosecutors to ensure that he bags a jail term.

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