• Tue. Feb 27th, 2024

Bithumb Owner Being Indicted by the Prosecutors for Fraud Charges

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Jul 13, 2021

As per the latest reports, the prosecutors from South Korea currently have the majority owner of Bithumb under their custody. Lee Jung-hoon, the majority owner at Bithumb, one of the largest cryptocurrency exchanges in South Korea is currently being indicted by the prosecutors.

The reports confirm that Lee Jung-hoon is currently being indicted by the South Korean prosecutors for $88 million. The local media sources reveal that the indictment is surrounding the wrapping of an altcoin. The prosecutors currently have Jung-hoon indicted for the controversy around a failed attempt of the launch of an altcoin listing.

There are possibilities that Jung-hoon may end up facing further legal actions from investors based in Hong Kong. There is currently a civil case going on in Hong Kong from the investors’ community in Hong Kong who were using Bithumb.

One of the local media sources Yonhap has shared more details around the current indictment being faced by Lee Jung-hoon. According to the firm, initially, there were some investors that had filed a complaint against the exchange at a local police station.

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Therefore, it was initially considered a civil complaint but progressing further into the matter brought many other things to the front. Therefore, the domestic prosecutors decided that it would be wise to carry on with the case. One thing led to another and now, the majority owner of Bithumb is being indicted.

It all started back in 2018, when it was revealed that Bithumb was going to get taken over by BK Group as the latter was reportedly making attempts to do it.

At that time, BK Group had announced that after the acquisition, it was going to enlist its BXA token through the platform. Unfortunately, the listing of the BXA token never came to completion, which meant that someone was getting into trouble.

On the other hand, even Bithumb had made several assertions about the enlistment of the digital token. This had ended up causing a rally on the digital token as more and more investors wanted to gain from the opportunity.

However, as the enlistment never took place, the investors who invested heavily in acquiring the BXA token ended up taking the hit. This happened because the price of the token took a huge blow and fell all the way to the bottom.

Since then, Kim Byung-gun, the chairman of BK Group has been involved with Jung-hoon since the incident took place. It has been speculated that Byung-gun is involved with Jung-hoon in this entire mix up. Many perceive that the enlistment announcement was made to make the initial coin offering a success.

It is believed that Byung-gun used the money raised through the ICO to get his hands on Bithumb during the bidding process.

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