The founder of Bithumb crypto exchange is facing a potential eight-year prison sentence over allegations of a $70 million fraud.
Founder Lee Jung-hoon faced trial on Tuesday with the verdict expected in late Dec, according to the Yonhap News Agency. Should the Bithumb man be found guilty he faces a maximum sentence of up to eight years.
Bithumb Fraud Led to Investor Losses
According to prosecutors, Lee stole $70 million from Kim Byung Gun. Kim made his fortune as the chairman of the cosmetic surgery empire BK Group, but sought to broaden his business interests by purchasing a stake in the South Korean exchange.
Kim paid a $70 million fee upfront to Lee on the understanding that he would proceed to list a BXA token to put the deal in motion. Despite Lee receiving the money from Kim the token listing never proceeded as promised.
Kim was not the only party damaged by this. Ordinary investors who expected the BXA token to float on…
