Ex-Bithumb President Lee Jeong-hoon Cleared of Fraud Charges

Lee Jeong-hoon's Acquittal

Former Bithumb President Lee Jeong-hoon was recently acquitted of all fraud charges by the Seoul Central District Court. Accusations had been made against Lee for alleged fraudulent activities regarding the sale of BXA coins and misappropriation of funds intended for Bithumb's acquisition. However, the court, under Judge Kang Gyu-tae, found no evidence to support these claims.

BXA Coin Controversy

The prosecution alleged that Lee sold BXA tokens worth approximately $25 million to the BK group without listing them, which led to a legal battle with BK Group's chairman, Kim Byung-Gun. Byung-Gun had initially planned a billion-dollar acquisition of Bithumb, starting with a $70 million payment, contingent upon Lee listing the BXA token. Lee's defense successfully argued that the sale was akin to a stock stake contract, and the court was convinced of Lee's intentions.

Bithumb's Response and Ongoing Challenges

Bithumb has publicly stated its respect for the court's decision, emphasizing its operation under professional management and clarifying that Lee is no longer involved in its operations. Despite Lee's acquittal, Bithumb continues to deal with various controversies, including investigations into alleged financial misconduct by former executives.

Recent Developments and Future Outlook

Recently, the vice president of Bithumb's largest shareholder company committed suicide amid stock price manipulation investigations, prompting further inquiries by South Korean authorities. In response to such incidents, local exchanges have implemented emergency systems, as required by regulations following the Terra-Luna collapse, to prevent future misconduct.

The dismissal of charges against Lee might offer some relief to Bithumb, as the exchange navigates through these turbulent times marked by ongoing allegations and challenging market conditions.