The ex-chairman of Bithumb could face an 8-year prison term over an alleged fraud of $70 million.
NEWS

The ex-chairman of Bithumb could face an 8-year prison term over an alleged fraud of $70 million.

The sentencing is scheduled to take place on Dec. 20 and may see the former head of South Korean crypto exchange Bithumb in prison for 8 years maximum.

The former head of South Korea’s largest cryptocurrency exchange, Lee Jung-hoon, might receive a prison sentence of up to eight years if found guilty of charges associated with an alleged fraud of $70 million.

Jung-hoon is accused of defrauding $100 billion or $70 million from the Chairman of the BK Group, Kim Byung Gun, in October 2018 while he was negotiating the sale of Bithumb exchange.

Byung Gun reports that he paid $70 million to Jung-hoon as a down payment towards buying the exchange on the condition that it lists a token called BXA created by Blockchain Exchange Alliance which Gun helped to form.

The proceeds from the token sale were supposed to go towards paying for the deal, however, Bithumb never listed it, and the sale fell apart.

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Yahya Imran is a crypto trader and blockchain content creator. He was a Campus Ambassador for FTX Africa and worked as a video content creator in the content Department of FTX Africa. He is a professional Video Editor and Video animator. He is the founder of Coinsplug.

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