Seoul’s Central District Court, presided by Judge Kang Gyu-tae, cleared the former President of Bithumb, Lee Jeong-hoon, of all fraud charges levied against him.
Recall that the former president of the crypto exchange has been facing trial in South Korea for a while now. The prosecutor accused him of indulging in fraud by selling BXA coins, a token belonging to Blockchain Exchange Alliance. Lee allegedly sold BXA tokens worth about $25 million to the BK group without listing them.
Additionally, Lee was accused of misappropriating a part of the fund meant to acquire Bithumb. According to findings, the chairman of BK Group, Kim Byung-Gun, initially planned to purchase the crypto exchange in a deal worth billions of dollars.
Byung-Gun said he made an initial payment of $70 million, with a promise by Lee to list the BXA token. This thus ignited a lawsuit between Lee and Kim Byung-Gun and led to the intervention of South Korean investigators.
In a filing, prosecutors requested an eight-year jail term for the former president. In addition, they claimed investors suffered severe damages from the alleged illicit act of Lee.
During the court hearing, Lee’s defense team dispelled the allegations by comparing the sale of the coin to a stock stake contract. Further, Lee’s legal team maintained that their client did everything with pure intention.
Reacting to the development, Bithumb said it respects the court’s ruling. In a statement, the exchange added that it operates under a system of professional managers, stressing that Lee is not involved in the management of Bithumb.
Bithumb has, in recent times, been ravaged by numerous controversies, putting the exchange in a bad light.
Investigations on the allegation started last October after it was suspected that the Bithumb ex-President conspired with other execs of the exchange to amass illicit funds from the manipulation.
A few days ago, reports confirmed that the vice president of the largest shareholder company of the exchange, Mr. Park, committed suicide amidst ongoing investigations over alleged manipulation of stock prices belonging to Bithumb affiliates. South Korean authorities have pledged to investigate Park’s death.
Lee has been facing charges from prosecutors for a while now. However, prosecutors dismissed investors’ claims that Lee and Kim had conspired in the sales. It may be a relief for the South Korean exchange, which has been struggling due to allegations and bad market conditions.
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Source: Cryptocurrency - investing.com
