Former Bithumb Chairman cleared of $100M fraud charges in second trial.

Lee Jeong-hoon, previous chairman of Bithumb Holdings and Bithumb Korea, was acquitted for the second time in the $100 million fraud case.

## Former Chairman of Bithumb Holdings Acquitted in $100 Million Fraud Case…Again 🧐

Posted by Jai Pratap on January 18, 2024

The former chairman of Bithumb Holdings and Bithumb Korea, Lee Jeong-hoon, has once again been acquitted in a $100 million fraud case. This comes after his earlier acquittal in January 2023 on similar charges. But how did this happen? Was there not enough evidence or is there something else at play? Let’s delve into the details and find out.

Prosecution’s Lack of Evidence? 🕵️‍♂️

During the trial, which began in July 2021 following Lee’s indictment, prosecutors alleged that he engaged in fraudulent activities, specifically stealing funds from cosmetic surgeon Kim Byung-Gun during negotiations for an acquisition deal. The prosecution argued that Lee embezzled the acquisition deposit by promising to list the “BXA token.” However, despite their claims, the court ruled in favor of Lee, stating that the evidence presented was insufficient to establish his guilt.

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🔍 Q&A: What factors led to Lee’s acquittal?

Q: Why did the court declare Lee not guilty?
A: The court found that the evidence presented was not credible enough to prove Lee’s involvement in the alleged fraud. They concluded that there was a lack of substantial evidence to support the prosecution’s case.

Q: Was this Lee’s first acquittal?
A: No, this is actually the second time Lee has been acquitted in the $100 million fraud case. The initial acquittal took place in January 2023, where the court deemed the charges unproven.

Allegations Against Lee 💰✍️

According to prosecutors, Lee orchestrated a scheme to defraud $100 million from Kim Byung Gun, the chairman of BK Group and founder of a chain of cosmetic surgery clinics. The alleged fraud occurred during negotiations for Kim’s acquisition of Bithumb Holdings, where Lee allegedly requested a $100 million upfront “contract fee” from Kim. In return, Lee promised to list the BXA token on Bithumb’s crypto exchange. However, despite the promises, the BXA token was never listed, prompting prosecutors to argue that Lee’s intention was to deceive Kim and mislead investors.

🔍 Q&A: How did Lee allegedly deceive investors?

Q: What was the significance of listing the BXA token?
A: The BXA token, associated with the Blockchain Exchange Alliance formed by Kim’s consortium, was meant to be the central component of the acquisition deal. Its listing on Bithumb’s crypto exchange would have provided investors with the opportunity to trade and invest in the token.

Q: Did investors face any consequences due to the non-listing of the BXA token?
A: As the token was never listed, investors could not trade or profit from it as initially promised. This led prosecutors to argue that Lee’s actions were intended to mislead investors and gain personal benefits.

A Future with Lessons Learned? 📚

With Lee’s latest acquittal, it remains to be seen what impact this will have on his reputation, as well as the broader perception of Bithumb and the cryptocurrency industry as a whole. While the court has determined Lee’s innocence based on the evidence presented, the case highlights the importance of due diligence and caution when engaging in business deals within the blockchain and financial sectors.

Moving forward, it is essential for investors, entrepreneurs, and regulatory bodies to ensure that transparent and ethical practices are upheld to maintain trust and foster the growth of the digital asset ecosystem.

🔍 Q&A: What are the future implications of this verdict?

Q: How might this verdict impact Lee’s reputation?
A: The repeated acquittals might lead to questions and skepticism about Lee’s business practices and ethics. It could impact his reputation within the industry.

Q: What lessons can we learn from this case?
A: This case underlines the importance of conducting thorough due diligence before entering into business deals, especially within the blockchain and financial sectors. It serves as a reminder to prioritize transparent and ethical practices to maintain trust within the industry.

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