Lee Jeong-hoon, the previous chairman of Bithumb, considered one of South Korea’s main cryptocurrency exchanges, faces a possible 8-year jail sentence. The Seoul Excessive Courtroom is predicted to ship its verdict within the enchantment case on January 18, 2024.
The authorized battle revolves round accusations towards Lee for his dealings with Kim Byung-gun, chairman of BK Group, in a possible acquisition of Bithumb. The prosecution alleges that Lee duped Kim Byung-gun out of 110 billion received (roughly $70 million) via a fraudulent settlement involving the itemizing of BXA tokens on the Bithumb alternate.
The prosecution claims that Lee was totally conscious of the challenges in itemizing the BXA token however intentionally withheld this data from Kim. Moreover, they argue that Lee’s restructuring plan for Bithumb aimed to revenue from alternate tokens whereas evading monetary rules.
Lee’s protection workforce, nevertheless, challenges these allegations. They argue that inconsistencies in Kim’s testimony undermine his credibility. Furthermore, they assert that Lee fulfilled all obligations as a vendor and prolonged the fee deadline upon request, solely to be unexpectedly sued by Kim.
The result of the enchantment is vital, not only for Lee Jeong-hoon but additionally for the broader cryptocurrency business. It’s poised to set a precedent in authorized disputes involving crypto exchanges and governance. Moreover, with Bithumb making ready for an IPO on the Kosdaq by 2025, the decision will considerably affect the alternate’s future and the destiny of BXA tokens.
The trial’s resolution, anticipated in January 2024, might result in a reassessment of governance buildings in cryptocurrency exchanges and doubtlessly entice elevated regulatory scrutiny. The authorized consequence will likely be a pivotal second for the business, doubtlessly reshaping insurance policies and practices in cryptocurrency exchanges.
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