Lee Sang-jun, the previous CEO of South Korean crypto alternate 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 courtroom 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 small print of how the 2 people tried to control the cryptocurrency market and inflated the value of a number of altcoins.
Bithumb is likely one of the largest cryptocurrency exchanges in South Korea. In line with 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 alternate for bribes. He obtained round 3 billion Korean gained (roughly $2 million), luxurious watches, high-end baggage, and unique restaurant memberships.
Itemizing less-popular altcoins on Bithumb artificially inflated their worth, thus immediately benefiting the promoters and founders.
A Effectively-Deliberate Scheme
One other determine, Kang Jong-hyun, a reclusive businessman and shut affiliate of each Lee and Ahn, was additionally concerned as he immediately obtained the bribes. He has additionally been sentenced to at least one and a half years in jail, and now his potential possession of Bithumb is below investigation.
Whereas Kang obtained the bribes, Ahn performed a key function in plotting the scheme, and his ties to Kang and Lee have been additionally essential. Ahn obtained the bribes from Kang and handed them to Lee for the listings.
The courtroom additionally criticized Anh’s actions as “heinous” as he even siphoned the bribery proceeds for his private achieve. 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.
Nonetheless, Lee was not the primary Bithumb government to face prison allegations. 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 associated to the alternate’s operations; nonetheless, he was acquitted in January 2023. Kang Jong-hyun, who’s acknowledged because the de facto proprietor of Bithumb, was additionally arrested in February 2023 for manipulating the inventory worth of Bithumb associates and misappropriating company funds. Park Mo, one other main shareholder of the Korean alternate, 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.
