South Korean prosecutors have submitted an appeal seeking an eight-year sentence for former Bithumb Chairman Lee Jung Hoon. 

The 5th criminal division of the Seoul High Court conducted an appeal hearing on the charges against Lee Jung Hoon, former Chairman of Bithumb. Prosecutors allege that he caused damages amounting to 110 billion won by misleading BK Group Chairman Kim Byung-gun. In addition to offering to acquire and manage Bithumb, Lee also promised to list BXA (Bithumb Coin) on the exchange.

Lee Jung Hoon defended his actions in his final statement during the hearing, expressing his confidence in Kim's ability to lead Bithumb effectively. He maintained that he acted in good faith as a seller, fulfilling his responsibilities. The former chairman also expressed frustration over delayed payments, adding a layer of complexity to the ongoing legal proceedings.

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Deceptive Practices and Financial Losses

The prosecution contends that Lee misled Kim Byung-gun regarding the feasibility of listing BXA on Bithumb. Despite being aware of the challenges related to the BXA listing, Lee allegedly failed to inform investors, leading to substantial financial losses. Prosecutors argue that Lee exploited significant information asymmetry for personal gain, causing damage to investors in the process.

Lee's defense team has countered these claims by highlighting inconsistencies in Kim Byung-gun's statements. They suggest that the victim was aware of the challenges surrounding the BXA listing. The defense emphasizes that the original trial court questioned the credibility of Kim's statements and asserts that the indictment is based on flawed premises.

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Upcoming Appeal Judgment: January 18, 2024

Despite being found not guilty in the first instance earlier this year, Lee Jung Hoon faces a renewed legal challenge with the appeal judgment scheduled for January 18, 2024. The legal battle continues as prosecutors seek a substantial sentence for the former Bithumb Chairman.

This legal development unfolds against the backdrop of Bithumb reportedly planning for an initial public offering (IPO) in Korea. Last month, Bithumb selected Samsung Securities as its underwriter, with plans for a potential IPO in the second half of 2025 on Kosdaq.