In a recent development, South Korean prosecutors have requested an eight-year prison sentence for Lee Jung-hoon, the former chairman of the board of directors of Bithumb, the country’s second-largest cryptocurrency exchange. The charges against Lee involve violations of laws and regulations related to specific economic crimes, specifically fraud. The prosecution claims that Lee deceived BXA, Bithumb’s native coin, by falsely promising co-management and listing assistance to BK Group Chairman Kim Byung-gun.

The prosecution alleges that Lee’s actions resulted in approximately 110 billion won (around $85 million) in damages. They argue that Lee allegedly planned to shift the control of Bithumb to foreign companies to benefit from the exchange’s cryptocurrency while evading financial regulations.

According to the prosecution, Lee possessed significant information imbalances and intentionally passed on various risks to the co-acquirer. They emphasize that Lee was aware of the difficulties in listing the BXA coin but failed to inform the victim. The defense disputes some of the prosecution’s claims, pointing out inconsistencies in the victim’s statements and suggesting that the victim initially proposed the acquisition of Bithumb.

In his final statement, Lee expressed regret for the situation and claimed to have acted in good faith as a seller, believing that President Kim would lead the company well and foster its growth. However, he requested an extension to fulfill his obligations and was unexpectedly sued.

The trial for Lee Jung-hoon is set to continue, with the appeal scheduled for January 18 next year. This case is one among several scandals involving Bithumb executives. Notably, the owner of Bithumb, Kang Jong-hyun, was recently arrested on charges of embezzlement and stock manipulation.

The South Korean authorities have been actively cracking down on cryptocurrency-related crimes to maintain integrity and security within the industry. With a current total market capitalization of $1.342 trillion and a remarkable 64.81% increase compared to the market cap from a year ago, the cryptocurrency market continues its long-term upward trajectory. Bitcoin (BTC) remains the dominant force in the market, with a market capitalization of $709 billion, accounting for 49.59% of the total market cap, according to CoinGecko data.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.