- Seoul High Court acquits ex-Bithumb Chairman Lee Jeong-hoon of fraud charges.
- Lee cleared for the second time in a multi-million dollar fraud case.
- Prosecutors fail to prove Lee’s commitment to list BXA token on Bithumb.
According to a local news media outlet report, the Seoul High Court has acquitted Lee Jeong-hoon, the ex-chairman of the major cryptocurrency exchange Bithumb, of the charges that prosecutors had leveled against him.
The report states that on January 18, the former Bithumb executive was acquitted by the 5th Criminal Division of the Seoul High Court. This recent ruling represents the second time the former Chairman has been cleared of charges in a fraud case involving millions of dollars.
In July 2021, charges were brought against Lee as prosecutors formally accused him of purportedly swindling Kim Byung-Gun out of 110 billion Won (equivalent to $82 million) amidst discussions for a takeover agreement. Additionally, the prosecutors leveled allegations against Lee for consenting to the placement of the BXA token on the Bithumb exchange despite his awareness of the impracticality of such an action. Moreover, it was claimed that the embattled Chairman had demanded the sum of 110 billion Won in advance as a fee for conducting the contract negotiations.
Prosecutors also charged Chairman Lee with manipulating Bithumb’s organizational structure to earn profits from cryptocurrency trading services while avoiding compliance with the nation’s financial rules and claims regarding the tokens.
The legal representatives for the defense contended that there were inconsistencies in Kim’s statements, casting doubt on his reliability. Additionally, they maintained that Lee was not guilty, arguing that he had met all his responsibilities as a vendor to Kim.
Nevertheless, the recent verdict of the court was in opposition to the claims of the prosecutors regarding the allegations of token listing. Specifically, the court determined that, given the evidence provided by the prosecution, it was impossible to conclude that the Chairman had committed to list the token.
According to the legal system in South Korea, the ex-chairman could have been sentenced to as much as eight years in jail. However, Lee seems to have evaded incarceration due to being found not guilty.
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