Lee Jung-Hoon, Bithumb Former Chair, Was Cleared For The First Time

According to the claims, the former chair was accused of defrauding the company of $70 million during the purchase of Bithumb.

The 34th Division of the Criminal Agreement of the Seoul Central District Court rendered a not-guilty verdict on January 3 against Lee Jung-hoon, the former chair of the South Korean bitcoin exchange Bithumb.

Due to fraud, Jung-Hoon was accused of breaking the Act on the Aggravated Punishment Of Specific Economic Crimes.

Since October 2018, when the former chairman was accused of defrauding Kim Byung-gun, the chairman of the cosmetic surgery business BK Group, of 100 billion won ($70 million), the lawsuit has been ongoing.

If proven guilty, Jung-hoon could have received an 8-year term. Bithumb reportedly stated that it respected the court’s judgement in its formal reaction to the decision.

The exchange also made it clear that the previous chairman is not involved in the current operations and that it is under “professional managers.”

Nearly a week before the decision, on December 30, Park Mo, the CEO with the highest stake in Bithumb, was discovered dead after being accused of theft and stock price manipulation.

These changes occurred in response to a ruling by Singaporean courts in August 2022, which found Byung-gun guilty of selling BXA tokens without Jung’s permission. hoon’s

The judge required him to give the Singapore-based organization BTHMB all of the money he received from the sale of BXA.

Later that month of October 2022, during the upheaval in the Terra environment, Jung-hoon excused his absence from a legislative session by claiming to have a mental illness.

Following the bankruptcy of Terra Luna, South Korean police searched several businesses, including Bithumb.

After the collapse, South Korean exchanges established an emergency procedure to safeguard against a similar Terra-like occurrence. All regional sales must now offer tokens by the same rules to guarantee adherence to national laws.