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- The previous head of Bithumb is in court docket over an alleged $70 million fraud
- The claims date again to the failed sale of the change in 2019
- Lee Jung-hoon is accused of making the most of the aborted takeover
The previous head of Bithumb, Lee Jung-hoon, faces as much as eight years in jail for allegedly orchestrating a $70 million cryptocurrency fraud. The allegations stem again to a failed takeover of the change in 2019, which noticed buyers lose out on greater than $25 million when the customer pulled out, and Lee could finally be on the hook for defrauding them. Native media reported on the preliminary levels of the case, which included Bithumb’s offices being raided in September 2020.
Failed Bithumb Sale Resulted in Huge Losses
The fees relate to a failed bid from Singapore-based BK International Consortium to purchase Bithumb in 2019. The sale concerned the creation of BXA tokens, which introduced in a 30 billion KRW funding (round $25.7 million) from the general public, however the sale collapsed in September 2019 when BK did not pay.
The BXA tokens grew to become nugatory in a single day, whereas Lee and Bithumb saved the cash, resulting in livid buyers suing Lee over their loss.
Lee Says Gross sales Was Carried Out “Faithfully”
Prosecutors allege that Lee had no intention of itemizing the BXA token because it was a part of an elaborate ploy to defraud his companion. Throughout a listening to earlier than the Seoul Central District Courtroom, this week prosecutors stated that “the quantity of injury may be very massive, and the harm is very nice for extraordinary coin buyers.” In return, Lee’s legal professional claimed that the token sale was “faithfully” carried out based on the standard process.
In an announcement, Lee apologised for his actions, saying that he’s “very sorry for making it tough for workers and inflicting social stress.”
