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Former Bithumb CEO Goes to Jail for Accepting Bribes to Checklist Crypto

Lee Sang-jun, the previous CEO of South Korean crypto change Bithumb, has been sentenced to 2 years in jail for his involvement within the bribery and market manipulation scheme. Together with him, the South Korean court docket additionally despatched Ahn Sung-hyun, a widely known golfer, to jail for four-and-a-half years.

Manipulating the Crypto Market

The trial on December 26 revealed the main points of how the 2 people tried to govern the cryptocurrency market and inflated the value of a number of altcoins.

Bithumb is without doubt one of the largest cryptocurrency exchanges in South Korea. Based on Coinmarketcap.com, it dealt with $1.26 billion in spot trades previously 24 hours, making it the 18th largest crypto buying and selling venue globally.

The South Korean prosecutors detailed that Lee agreed to record altcoins on Bithumb in exchange for bribes. He acquired round three billion Korean gained (roughly $2 million), luxurious watches, high-end baggage, and unique restaurant memberships.

Itemizing less-popular altcoins on Bithumb artificially inflated their price, thus straight benefiting the promoters and founders.

A Nicely-Deliberate Scheme

One other determine, Kang Jong-hyun, a reclusive businessman and shut affiliate of each Lee and Ahn, was additionally concerned as he straight acquired the bribes. He has additionally been sentenced to 1 and a half years in jail, and now his doable possession of Bithumb is beneath investigation.

Whereas Kang acquired the bribes, Ahn performed a key function in plotting the scheme, and his ties to Kang and Lee had been additionally essential. Ahn acquired the bribes from Kang and handed them to Lee for the listings.

The court docket additionally criticised Anh’s actions as “heinous” as he even siphoned the bribery proceeds for his private acquire. He additionally pocketed 2 billion Korean gained (about $1.5 million), performing because the intermediary within the bribery scandal, and used the cash to make private investments.

Nevertheless, Lee was not the primary Bithumb government to face legal actions. Many different prime Bithumb associates have additionally had conflicts with the legislation previously.

Lee Jung-hoon, the previous chairman of Bithumb, was charged with fraud involving $70 million related to the exchange’s operations; nevertheless, he was acquitted in January 2023. Kang Jong-hyun, who’s recognised because the de facto proprietor of Bithumb, was additionally arrested in February 2023 for manipulating the inventory value of Bithumb associates and misappropriating company funds. Park Mo, one other main shareholder of the Korean change, additionally confronted investigation for embezzlement and inventory manipulation, however he was discovered lifeless in entrance of his dwelling in December 2022.

This text was written by Arnab Shome at www.financemagnates.com.

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