South Korean prosecutors may sentence Lee Jung-hoon, former chairman of crypto exchange Bithumb, to a maximum eight-year prison term for fraud, according to the statement.reportof the South Korean news agency Yonhap
fraud caserelevantWith the sale of Bithumb’s BXA tokens as part of an effort by Singapore-based BK Group to buy the cryptocurrency exchange in 2018, the preliminary deal led to Lee selling $25 million worth of BXA tokens to BK. Group, these tokens were also sold to investors for approximately $45 million.
However, Bithumb does not list BXA tokens and this allegedly led to significant losses on the part of investors. The investors sued both Lee and BK Group chairman Kim Byung Gun for fraud.
“The amount of damage is huge. And the damage is enormous, especially for ordinary investors,” the lawsuit filed at a hearing on Tuesday in the Seoul Central District Court said.
However, Lee argued that the token sale was in accordance with The defense also argued that BK Group’s Kim sought to avoid criminal responsibility for his part in the BXA token sale.
The court is scheduled to hear the judgment on December 20.
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