Former Bithumb Chairman Lee Jung-hoon acquitted on $100 million fraud charge
Former Bithumb Holdings Chairman Lee Jung-hoon and Bithumb Korea were acquitted on fraud charges for the second time. The 5th Criminal Division of the Seoul High Court recently found him not guilty in a $100 million fraud case.
This case dates back to July 2021, when Lee was indicted on charges of defrauding plastic surgeon Kim Byeong-gun of 100 billion won (approximately 82 million dollars) during acquisition negotiations. This indictment follows charges that Mr. Lee embezzled the underwriting deposit under the pretext of listing ‘BXA tokens’ on the Bithumb cryptocurrency exchange. However, despite the seriousness of the charges, prosecutors failed to present sufficient evidence to support their claims.
The ruling is consistent with a previous acquittal in January 2023, when the court found the charges against Lee not proven. The defense team pointed out contradictions in Mr. Kim’s testimony and argued that Mr. Lee fulfilled all his duties as a seller. The court determined that the evidence presented by the prosecution alone could not conclusively prove that Chairman Lee had promised to list the BXA token, which was the core of the case.
Lee’s case has become a focal point in the Korean cryptocurrency space, reflecting the complex interplay between emerging digital financial technologies and existing legal frameworks. His acquittal highlights the difficulties prosecutors face in proving fraud in high-stakes, high-tech financial cases.
The BXA token, linked to the Blockchain Exchange Alliance formed by Chairman Kim’s consortium in December 2018, was scheduled to be the financial center of this acquisition transaction. Despite Lee’s assurances, the token has never been listed on Bithumb. This led the prosecution to claim that Mr. Lee’s promise was a tactic to deceive Mr. Kim and mislead investors. However, the court’s decision indicates that these claims cannot be proven.
Lee’s acquittal has broader implications for the cryptocurrency industry, particularly with regard to the legal complexities surrounding cryptocurrency exchanges and token listings. It also highlights the need for clearer regulatory guidance and legal standards in the rapidly evolving world of digital currencies and blockchain technologies.
In conclusion, the acquittal of Jung-Hoon Lee in the $100 million fraud case involving Bithumb and BXA tokens marks an important moment at the intersection of cryptocurrency and legal proceedings. It sheds light on the challenges of navigating and regulating the complex and often murky waters of the cryptocurrency industry.
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