Former Bithumb Chairman Handed Over to Prosecutors on Fraud Charges

A former chairman of Bithumb Korea has been handed over to prosecutors, seven months after being called in for questioning by police on charges of fraud.

April 26, 2021 | AtoZ Markets – Lee Jung-hoon, former Chairman of the Board of Directors of Bithumb Holdings and Bithumb Korea, was handed over to prosecutors on charges of fraud related to the Bithumb Coin (BXA).

According to the Intelligent Crime Investigation Unit of the Seoul Metropolitan Police Agency on April 24, the police sent the former chairman Lee Jung-hoon, the owner of the cryptocurrency exchange Bithumb, to the Supreme Prosecutors Office of the Republic of Korea on April 23 for fraud under the Specific Economic Crimes Weighted Penalty Act (Special Police Act).

The police decided that other charges, such as Lee’s escape from abroad and violation of the Foreign Investment Promotion Act, were not suspicious. The police decided to reject BK Group Chairman Kim Byung-gun, who was accused with Lee, to the prosecution.

Read also: Bithumb Exchange Raided Again by Korean Police

About 50 people who invested about 8 billion won ($71,942) in BXA sued former Chairman Lee, Chairman Kim, and about 10 Bithumb officials on charges of fraud under the Special Police Act in March 2020. Complainants claimed that in 2018, former Chairman Lee and Chairman Kim pre-selled BXA tokens that they were going to be listed on Bithumb, but that the actual listing was not made.

The pre-sale of BXA occurred in the process of a contract for former Chairman Lee to transfer shares of Bithumb Holdings, a holding company of Bithumb Korea worth 400 billion won ($35,971), to Chairman Kim in October 2018.

In this regard, the police seized Bithumb in September 2020 and summoned former chairman Lee to investigate.

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