Bithumb’s Chairman Lee Jung Hoon Subpoenaed for Fraud By Seoul Police

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
  • Bithumb’s entire management staff ranging from the Chairman to the Board of Directors have received Subpoena on September 18. 
  • Exchange was planning to go public in 2019 but Singapore based Blockchain Alliance had plans to acquire the company and go public in America
  • In 2018 President Kim Byeong Geon tried to acquire Bithumb through a Singapore subsidiary

Bithumb Exchange has been under the pump for quite a while now. What started as an investigation by Seoul Police on September 1 is now turning to be a nightmare for Bithumb and its board of directors. In the latest development, the company’s entire management staff ranging from the Chairman to the Board of Directors have received Subpoena on September 18. 

Bithumb is the 9th largest cryptocurrency exchange in the world and the largest in South Korea. The exchange was planning to go public in 2019 but Singapore based Blockchain Alliance had plans to acquire the company and go public in America. 

Where Did It Begin?

In 2018 President Kim Byeong Geon tried to acquire Bithumb through a Singapore subsidiary. Chairman Lee at the time was accused of not reporting the same to the police. Seoul police further investigated BXA investments after a case was filed by Ohkimslaw law firm on behalf of the 60 investors who suffered a loss of $25 million. Chairman Lee-hoon and Chairman of BK Group Kim Byung-gun are being accused of misguiding their investors into believing that BXA tokens are listed on Bithumb exchange. This led to investors selling $30 billion of BXA tokens when in reality they were never listed. 

In July 2020, the case was taken over from the Seoul Suseo Police Station and transferred to the Seoul Metropolitan Government’s Intelligent Crime Investigation Department. Investigations moved forward and on 7th September 2020, Crime Department searched Bithumb Exchange. At the same time, Seoul Central District Ruled out the possibility that Bithumb was involved in the data breach incident of 2017. Addition to these charges, Lee Hoon was also charged for evading the property under violation Act on Aggravated Punishments for Specific Economic Crimes. 

Bithumb is planning again to go public this year after the failure of last year’s IPO. Whatever Bithumb plans for the future, the road to that will have to go through subpoenas and microscopic investigation from the Seoul Law Department. 

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