According to Korean news outlet E-Daily, the first trial sentence for the fraud of 110 billion won (about $70 million) by the former president of the virtual asset exchange Bithumb, Lee Jung-hoon, who is recognized for being the true owner of the company, will be unveiled today.
The 34th Criminal Agreement Division of the Seoul Central District Court will set a sentencing date for former Chairman Lee on the third, according to the legal community. Former Chairman Lee was brought to trial on charges of breaking the Aggravated Punishment for Economic Crimes Act at 2:00 pm on the same day (local time).
It is known that Kim Byung-gun utilized some of the money from the BXA pre-sale to purchase shares in October 2018 when Lee Jung-hoon and he were discussing the sale of Bithumb shares. Kim Byung-gun had heard that Lee Jung-hoon would list BXA (Bithumb token) on Bithumb at the time. shares in Bithumb, although BXA isn't listed there, and the BK Group is still buying Bithumb.
According to the prosecution, former chairman Lee established a company to raise money during the contract negotiations by offering BXA coins and collaborating with other exchanges, avoiding Korea because ICOs are not permitted there.
Even though the prosecutor had no desire or ability to issue or sell assessed coins, former Chairman Lee misled Chairman Kim by saying, "If you pay only part of the acquisition price, you can issue and sell coins to pay the balance," during this procedure.
Following the investigation, the former chairman Lee published a notice stating that "BXA Coin is expected to be listed," however the listing process was halted due to financial authorities' laws and self-delisting when cooperation was detected.
He was tried in July on charges of embezzling 112 billion won ($98 million) in bonds and stocks, as well as obtaining bond and stock balances without informing Chairman Kim about the listing failure.
Former Chairman Lee refuted the claim that Chairman Kim's side suggested buying Bithumb first, and the final transaction document did not contain any assurances that BXA Coin would be listed.
The prosecution stated: "The harm to regular coin investors is considerable" at the final trial on October 25. It is important to impose a harsh penalty because the criminal continues to dispute the low-quality crime.
He could spend up to eight years in prison if the accusations are found to be true.
On suspicion of embezzlement and stock price manipulation of the cryptocurrency exchange "Bithumb affiliates," a suspect was discovered dead while being examined by the prosecution.
The individual in question was Park Mo, vice president of Vident, a holding company for Bithumb, who committed himself on December 30 by jumping off a building (local time). According to rumors, Park handled accounting duties for Mr. Kang's brother and sister, who represented themselves as the chairman of Bithumb, while he was vice president of Vident.
