Benzinga - Former chairman of South Korean cryptocurrency exchange Bithumb Lee Jung-hoon on Tuesday was declared not guilty by the 34th Division of the Criminal Agreement of the Seoul Central District Court.
Jung-hoon had been on trial for allegations of fraud and violating the Act on the Aggravated Punishment of Specific Economic Crimes.
The case dates back to October 2018, when Jung-hoon was accused of defrauding KRW 100 billion (around $70 million) during negotiations for the acquisition of Bithumb from Kim Byung-gun, chairman of cosmetic surgery company BK Group, according to Cointelegraph.
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If he had been found guilty, Jung-hoon could have faced a prison sentence of up to eight years.
Bithumb Says Respects Court Decision
In response to the ruling, Bithumb issued a statement saying that it respects the decision of the court and reiterated that the former chairman is not involved in the company's current operations.
Prior to the ruling, on Dec. 30, Bithumb's largest shareholder executive, Park Mo, was found dead after being accused of embezzlement and manipulating stock prices.
The event followed an August 2022 decision by Singaporean courts, which found Byung-gun guilty of selling BXA tokens without Jung-hoon's consent and ordered him to return all proceeds from the sale to Singapore-based group BTHMB.
In October 2022, Jung-hoon failed to attend a parliamentary hearing related to the Terra ecosystem turmoil, citing a mental health disorder.
Bithumb was among the companies searched by South Korean authorities following the collapse of Terra Luna (CRYPTO: LUNC).
In response, South Korean exchanges implemented an emergency system as a preventative measure in case of a similar incident and now must list tokens based on the same guidelines in order to comply with local regulations.
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