Court Acquits Former Bithumb Chair in $82M Fraud Case

Former Bithumb chair Lee Jeong-hoon has been found not guilty in a multimillion-dollar fraud case for the second time.

Mr Thumb is very happy with the decision of the court to let him go.
Created by Kornelija Poderskytė from DailyCoin
  • Former Bithumb chair has been acquitted in a multimillion-dollar fraud case.
  • Today’s court decision makes the former chairman’s second acquittal on comparable charges.
  • The court cited insufficient evidence to sustain the charges.

The former Chairman of Bithumb Holdings and crypto exchange Bithumb Korea, Lee Jeong-hoon, has been acquitted for the second time in a multimillion-dollar fraud case.

Lee has been entangled in the case since his indictment in July 2021, when South Korean prosecutors charged him for allegedly defrauding cosmetic surgeon Kim Byung-Gun of 100 billion won ($82 million) during negotiations for an acquisition deal.

Court Finds Lee Jeong-hoon Not Guilty

According to local coverage, following his first acquittal in January 2023 on comparable charges linked to the fraud allegations, the 5th Criminal Division of the Seoul High Court found the former Bithumb chair not guilty on January 18.

During the trial, the prosecution argued that the alleged fraud happened when Lee requested a 100-billion won upfront “contract fee” during negotiations for Kim’s acquisition of Bithumb Holdings in 2018.

In return, Lee promised to list the BXA token on Bithumb’s crypto exchange, which he never fulfilled. The BXA token is linked with the Blockchain Exchange Alliance, founded by Kim’s consortium in 2018.

While the prosecution submitted that Lee embezzled the acquisition deposit from Kim under the pretext of listing the BXA token, the court ruled out the argument, faulting the prosecution for failing to provide adequate evidence.

The former chairman could have faced up to eight years imprisonment had he been found guilty under the Act on the Aggravated Punishment of Specific Economic Crimes.

Read about the multimillion-dollar crypto transactions by South Korean lawmakers:
South Korea Exposes $97M Crypto Transactions by Lawmakers

Stay updated on South Korea’s stance toward Bitcoin ETFs:
South Korea Warns Brokers Against Bitcoin ETF Trading

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.