- Allegedly, Lee perpetrated fraud in the amount of 130 billion won
- Lee asked for the money as a “contract fee” from Kim to list the BXA token
- The Blockchain Exchange Alliance, founded by Kim, issues BXA
Lee Jung-hoon, the former chairman of Bithumb Holdings, was acquitted of fraud charges due to lack of evidence that he committed the crimes, CoinDesk wrote, citing CoinDesk Korea. Holdings is the parent company of Bithumb Korea, a crypto exchange. Allegedly, Lee perpetrated fraud in the amount of 130 billion won (approx. $100 million).
The crime
Lee Jung-hoon was indicted in July last year. In October, South Korean prosecutors asked for an eight-year prison term for him. Lee allegedly stole the money from Kim Byeong-gun, a cosmetic surgeon, the founder of a cosmetic surgery franchise, and the chairman of BK Group. This happened while the two were negotiating a deal for Kim to acquire Bithumb Holdings.
The story
Reportedly, Lee asked for $100 million as a “contract fee” from Kim in advance. In return, he would list the BXA token on the crypto exchange. The Blockchain Exchange Alliance issues this token. It was founded by Kim together with a BK Group-affiliated consortium in December 2018.
That year, Lee proposed that Kim take over Bithumb under a joint management agreement. According to CoinDesk’s report, Lee was accused of embezzling the acquisition deposit made to list the BXA token.
The court found no evidence that Lee had committed the crimes Kim accused him of. Prosecutors may appeal the decision within a week if they are unsatisfied with it, the report said.
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