Lee Jung-hoon, the former chairman of the cryptocurrency exchange Bithumb in South Korea, was found not guilty by the 34th Division of the Criminal Agreement of the Seoul Central District Court, which is presided over by Judge Kang Gyu-Tae. This division of the court is part of the Criminal Agreement.
Lee Jung-Hoon, who is accused of violating the Act on the Aggravated Punishment of Specific Economic Crimes, was reportedly brought before a judge today in connection with the case.
The inquiry into the purchase of Bithumb that previously included Lee Jung-Hoon and Kim Byung-gun, chairman of the cosmetic surgery firm BK Group, was reopened by the authorities in the previous year.
It is believed that the previous chairman Lee took a part of the purchase price when BK Group Chairman Kim Byung-gun sought to buy Bithumb in October 2018 for around 400 billion won.
At this moment, it would seem that Lee was given an advance payment from Kim in the amount of $70 million. According to the accusations, even though Lee did receive cash from Kim for the assurance that Bithumb will list the “Bithumb Coin” (BXA), the expected token listing did not occur even though Lee did get payment for the guarantee.
If Jung-hoon had been found guilty, he may have been sentenced to eight years in prison. “We accept the court’s verdict,” Bithumb said, in addition to adding that the firm is managed by “professional management” and that the previous chairman is not now engaged in company operations.
The failed agreement also resulted in losses for normal investors who had expected that the BXA coin would trade on Bithumb. Those investors lost money as a consequence of the deal.
As a direct consequence of this, investors who had suffered significant losses accused Lee and Kim of engaging in fraudulent activity. Kim was given the responsibility of integrating the pre-sale of BXA and a part of the down payment into one transaction.
Despite this, Kim was able to avoid any penalty from the authorities because to the claimed $70 million in fraudulent activity committed by Lee during the transaction.
The prosecution refuted the assertion that Lee and Kim had organized the transactions jointly and came to the conclusion that Kim was impacted by Lee’s dishonesty as a result of the investigation. The defendants Lee and Kim
Lee was one of six witnesses who were called to testify in the continuing investigation into Terra’s accident. Despite his assertions that he suffers from panic disorder and that he was not in charge of operating Bithumb, Lee was called as a witness.
Compiled by Coinbold