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Former Bithumb chair faces 8-year imprisonment

Former Bithumb chair faces 8-year imprisonment

Lee Jeong-hoon, the former chair of Bithumb, is currently embroiled in a legal battle and may be facing an eight-year jail term pending the appeal’s verdict on Jan. 18.

Reports from Korean media indicate that prosecutors are alleging Lee’s intention to manipulate Bithumb’s governance for personal gain, in violation of financial regulations. They claim that despite challenges in listing BXA Coin, Lee received payments without disclosing the issues to Kim.

Prosecutors have requested an eight-year prison sentence for Lee Jung-hoon.

Lee’s defense team disputes these claims, pointing out inconsistencies in Kim’s statements and questioning his reliability. Lee insists that Kim was kept informed about the status of BXA Coin’s listing and his competence to lead Bithumb.

Lee Jeong-hoon’s legal issues stem from accusations of violating the Act on Aggravated Punishment for Specified Economic Crimes, particularly fraud. The prosecution alleges that he was involved in a 110 billion won fraud scheme with BK Group Chairman Kim Byung-geon.

The outcome of Lee’s appeal could set a precedent for legal proceedings involving cryptocurrency exchanges and governance, coinciding with Bithumb’s plans for an IPO on KOSDAQ by 2025.

The result of the appeal will significantly impact Bithumb’s future and the fate of BXA Coin, potentially leading to increased regulatory scrutiny in the industry.

As the cryptocurrency community awaits the appeal outcome, the case underscores the need for well-defined regulatory frameworks to address governance issues and maintain investor and stakeholder trust within the industry.

Related: Bithumb plans to be first crypto exchange listed on Korea stock market: Report

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