Lee Jeong-hoon, the previous chair of Bithumb, one in every of South Korea’s main cryptocurrency exchanges, is on the middle of a prison combat and would possibly face an eight-year jail sentence, with a verdict scheduled for Jan. 18, 2024.
In accordance to Korean native media stories, prosecutors contend that Lee supposed to redesign Bithumb’s governance to achieve from change tokens, circumventing monetary rules. The case has been ongoing since October 2018, when the previous chair allegedly defrauded 100 billion gained ($70 million) all over negotiations for the purchase of Bithumb from Kim Byung-gun, chair of the plastic surgery corporate BK Team. Prosecutors declare Lee knew about demanding situations within the BXA token list however didn’t reveal it to Kim. Regardless of list problems, Lee purportedly gained bills with out informing Kim concerning the choice to not record the BXA token.
The South Korean prosecutors asked an eight-year jail sentence for Lee.
Lee’s protection demanding situations the claims, mentioning discrepancies in Kim’s statements and wondering his reliability. Lee insists on Kim’s competence to steer Bithumb, keeping up that Kim used to be knowledgeable concerning the growth of the BXA token list.
Lee faces prison problems associated with accusations of violating the Act on Annoyed Punishment for Specified Financial Crimes, in particular fraud.
The verdict on Lee’s ongoing attraction would possibly set a precedent for prison complaints involving cryptocurrency exchanges and governance. This building coincides with Bithumb’s arrangements for an preliminary public providing on Kosdaq by means of 2025.
The attraction’s end result will considerably have an effect on Bithumb’s long term and the destiny of BXA tokens. A to blame verdict would possibly cause a reassessment of governance frameworks in cryptocurrency exchanges, probably leading to greater regulatory scrutiny.
Whilst the cryptocurrency group and buyers look forward to the attraction end result, the case underscores the trade’s dynamic nature and the need for well-defined regulatory frameworks to take on governance problems and uphold consider amongst buyers and stakeholders.