Former Bithumb chair faces 8-year imprisonment

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Lee Jeong-hoon, the previous chair of Bithumb, considered one of South Korea’s main cryptocurrency exchanges, is on the heart of a authorized battle and would possibly face an eight-year jail sentence, with a verdict scheduled for Jan. 18, 2024.

In accordance to Korean native media reviews, prosecutors contend that Lee supposed to revamp Bithumb’s governance to realize from alternate tokens, circumventing monetary laws. The case has been ongoing since October 2018, when the previous chair allegedly defrauded 100 billion received ($70 million) throughout negotiations for the acquisition of Bithumb from Kim Byung-gun, chair of the beauty surgical procedure firm BK Group. Prosecutors declare Lee knew about challenges within the BXA token itemizing however didn’t disclose it to Kim. Regardless of itemizing points, Lee purportedly obtained funds with out informing Kim concerning the choice to not record the BXA token.

The South Korean prosecutors requested an eight-year jail sentence for Lee.

Lee’s protection challenges the claims, declaring discrepancies in Kim’s statements and questioning his reliability. Lee insists on Kim’s competence to guide Bithumb, sustaining that Kim was knowledgeable concerning the progress of the BXA token itemizing.

Lee faces authorized points associated to accusations of violating the Act on Aggravated Punishment for Specified Financial Crimes, notably fraud.

Associated: Bithumb plans to be first crypto alternate listed on Korea inventory market: Report

The choice on Lee’s ongoing enchantment would possibly set a precedent for authorized proceedings involving cryptocurrency exchanges and governance. This growth coincides with Bithumb’s preparations for an preliminary public providing on Kosdaq by 2025.

The enchantment’s end result will considerably influence Bithumb’s future and the destiny of BXA tokens. A responsible verdict would possibly set off a reassessment of governance frameworks in cryptocurrency exchanges, probably leading to elevated regulatory scrutiny.

Whereas the cryptocurrency neighborhood and traders anticipate the enchantment consequence, the case underscores the trade’s dynamic nature and the need for well-defined regulatory frameworks to sort out governance points and uphold belief amongst traders and stakeholders.

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