Former chairman of South Korean cryptocurrency exchange Bithumb Lee Jung-hoon could face a possible maximum sentence of eight years in prison. if convicted of charges related to an alleged $70 million fraud.
Local prosecutors applied for the sentence to the Seoul District Court on October 25, and the sentencing hearing will take place on December 20according to a report by the Yonhap news agency.
Jung-hoon Allegedly Defrauded 100 Billion Won Or 70 Million USD From Kim Byung Gunchairman of cosmetic surgery company BK Group in October 2018 during negotiations for Gun to buy the Bithumb exchange.
Gun alleges he paid Jung-hoon $70 million as a ‘down payment’ towards the purchase of the exchange on the condition that it lists a token called BXA created by the Blockchain Exchange Alliancewhich Gun helped form.
Proceeds from the listing of the token would have allegedly gone to help pay for the acquisitionbut Bithumb never listed it and the deal fell apart.
“The structure of this case is a typical stock sale contract,” Jung-hoon’s lawyer would have said as a defenseadding that it was carried out faithfully according to the typical procedures of a contract of this type.
Jung-hoon said in his final statement in court that he was “very sorry for making it difficult for employees and causing social pressure.”
Earlier this month, Jung-hoon did not attend a parliamentary hearing on October 6 regarding the $40 billion settlement of the Terra ecosystem.citing panic disorder as the reason for his absence.
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