Virtual Currency Exchange Bithumb's Real Owner Referred to Prosecutors on Fraud Charges

[Asia Economy Reporter Ryu Tae-min] The Seoul Metropolitan Police Agency's Intelligent Crime Investigation Unit announced on the 24th that it has sent Lee Mo (45), the actual owner of Bithumb, the largest cryptocurrency exchange in South Korea, and former chairman of the boards of Bithumb Holdings and Bithumb Korea, to the prosecution on the 23rd on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes (Special Act on Economic Crimes).

The police did not recognize any charges against Chairman Lee other than fraud under the Special Act on Economic Crimes. Kim Mo (58), chairman of BK Group, who was also accused along with Chairman Lee, was decided not to be prosecuted.

Former Chairman Lee is suspected of having pre-sold a significant amount of BXA coins, a cryptocurrency, during the process of promoting the sale of Bithumb in October 2018, claiming that the coins would be listed, but in reality, they were not listed.

About 50 BXA investors filed a complaint last year accusing them of fraud and property concealment abroad under the Special Act on Economic Crimes, claiming that Bithumb promoted the sale of coins in a way that made it appear as if Bithumb had issued BXA tokens, causing them damages.

The police conducted two searches of Bithumb in September last year and summoned Chairman Lee and others for investigation.

This content was produced with the assistance of AI translation services.