Former Head of Crypto Exchange Bithumb Charged With Eight Years in Prison for Alleged $70,000,000 Fraud: Report

South Korean prosecutors are charging the previous head of a serious crypto alternate with fraud value almost $70 million.

In line with a report from the South Korean information outlet Yonhap Information Company, state prosecutors have requested for eight years in jail for Lee Jung-hoon, the previous head of Bithumb.

Says the South Korean prosecutors,

“The quantity of harm could be very giant, and the injury is very nice for atypical coin traders.”

Lee is being charged with stealing $70 million from BK Group chairman Kim Byung Gun throughout negotiations over a deal that may have resulted in Kim proudly owning Bithumb Holdings.

The costs focus on a $70 million contract charge, paid upfront with sure caveats. The contract charge stipulated {that a} so-called ‘Bithumb Coin,’ which later got here to be generally known as the Blockchain Change Alliance (BXA) token, can be listed as a part of the deal. However when Bithumb by no means listed BXA, the deal fell via, which is when the alleged fraud happened, in accordance with South Korean prosecutors.

Lee’s lawyer reportedly mentioned in court docket,

“The construction of this case is a typical inventory sale contract…

Bithumb was the primary alternate in Korea on the time of sale.

I’m very sorry for making it tough for workers and inflicting social strain.”

The sentencing for the case will likely be carried out on December twentieth.

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