Cryptocurrency broker owner faces 8 years in prison for alleged BRL 417 million scam

Jeong-hoon Lee, the current owner of Bithumb brokerage, is accused of defrauding 100 billion South Korean won, equivalent to more than R$400 million. As punishment, prosecutors have asked Lee to spend eight years in prison.

Such a request was made Tuesday (25) during Lee’s trial on the case, according to local Yonhap news agency.

In a separate case, South Korean justice was also looking for Lee and executives from other South Korean exchanges to obtain explanations about the collapse of the cryptocurrency Terra (LUNA), created by his compatriot Do Kwon.

Lawsuit Cites Bithumb Coin (BXA) Claiming It Was a Scam

In 2019, it was announced the creation of Bithumb Coin (BXA), a cryptocurrency that would operate like the famous Binance Coin (BNB) and provide benefits to its holders such as discounts on in-exchange trading fees.

However, it is noteworthy that such a project was never carried out because this cryptocurrency does not exist. Lee reportedly convinced Kim Mo to acquire Bithumb exchange, stating that they could create Bithumb Coin (BXA) and then list it on the exchange itself, which has not happened. Therefore, all investors lost all the money invested in it.

With some of the money raised in the presale of the BXA cryptocurrency, Kim Mo is said to have bought Lee’s stake in the company, but the takeover was said to have failed in the end.

With no continuation of the project, Mo was also sued alongside Lee but claims he was also cheated like all BXA investors. Going further, the lawsuit alleges that Jeong-hoon Lee, owner of Bithumb, earned 112 billion South Korean won, equivalent to 417 million reais in direct conversion, from the presale of this token.

“The structure of this business is a typical inventory sales contract”argued Lee’s lawyer. “The negotiations lasted 90 days, and both the defendant and Kim are experts, and lawyers from law firms were involved in both negotiations.”

Finally, the defense also alleges that the contract has been fulfilled and that Kim would try to evade his responsibility towards the injured investors.

Now everyone is waiting for the hearing, which will be held on December 20. As a climax, the prosecution asks that Jeong-hoon Lee, owner of Bithumb, be sentenced to eight years in prison.

Source: Live Coins

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