Former Bithumb Chairman Lee Jung-hoon Stands Trial In $70 Million Fraud Case
Summary:
- Prosecutors in a $70 million fraud case asked a South Korean court to sentence Lee Jung-Hoon to prison, Yonhap News reported.
- Lee is the former chairman of Bithumb Holdings, the company behind major South Korean crypto exchange Bithumb.
- South Korean prosecutors are after an eight-year sentence for fraud charges.
- Notably, a congressional committee called Lee as a witness in the ongoing Terra crash inquiry.
- The former chairman cited mental conditions as an excuse for his non-appearance at the hearing, as did Hashed CEO Simon Seojoon Kim.
Former Bithumb Holding Chairman, Lee Jung-Hoon, could spend time in prison as South Korean prosecutors asked the court to issue an eight-year sentence. Lee stood trial on Tuesday on fraud charges, Korean news outlet Yonhap reported.
According to the prosecution, Lee defrauded BK Group chairman Kim Byung Gun of $70 million. Lee and Kim entered a deal that involved Kim’s purchase of Bithumb Holdings. Lee received a $70 million “contract fee” with conditions attached.
The terms of the contract included a BXA token listing on the crypto exchange and deploying proceeds from the sale for BK Group’s acquisition. However, the listing never happened per reports. BXA is a cryptocurrency developed by the Blockchain Exchange Alliance, a crypto company founded in 2018 by Kim and other crypto proponents.
A verdict on the cases will be issued on December 20, 2022
Ex-Bithumb Exec Ducks Terra Congressional Hearing
Lee Jung-Hoon who stood trial on Tuesday is also part of a list of witnesses named by a South Korean congressional inquiry. The government-led probe asked several high-ranking executives from South Korean companies to appear before lawmakers and testify about their Terra-related activities.
Authorities deployed investigative efforts toward unmasking the catalyst behind Terra’s $40 billion ecosystem failure after LUNA and UST crashed in May 2022.
Lee did not appear at the hearing, claiming mental health concerns. Indeed, other witnesses like Hashed CEO Simon Seojoon Kim also cited mental illness risks as the reason for missing the hearing.
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