Police Investigate Second Lawsuit Case Filed by 'Bithumb Coin' Investors
The police have launched an investigation into the second criminal complaint filed by victims of the cryptocurrency 'BXA' (commonly known as Bithumb Coin) scam.
According to the police on the 2nd, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency received the case last month involving 14 investors, including Mr. Won, who filed a complaint accusing Kim Byung-gun (58), chairman of BK Group, and Lee Jung-hoon (45), former chairman and the actual owner of Bithumb Holdings and Bithumb Korea, of fraud.
In their complaint, they stated, "Chairman Kim acquired Bithumb in October 2018 (from former chairman Lee), and said that Bithumb Coin (BXA) would be issued and listed," adding that based on Kim's words, they gathered 718 bitcoins and 7,793 ethers worth approximately 6.92 billion KRW at the time.
However, the acquisition of Bithumb did not take place. Victims claim that contrary to Kim's promises to investors and the media, the entire sales proceeds were paid to former chairman Lee for the acquisition of Bithumb. They view Kim and Lee as accomplices.
In fact, the sale of Bithumb fell through in September 2019. Chairman Kim paid former chairman Lee a contract deposit of 100 million USD (about 112 billion KRW) but failed to pay the remaining balance. BXA, which was reportedly sold for hundreds of billions of won, was never listed, leaving investors unable to recover their losses.
Previously, prosecutors and police conducted an investigation into the first complaint related to BXA last year. Last month, prosecutors indicted former chairman Lee without detention on charges of fraud against Chairman Kim. However, the prosecutors dismissed the coin sales fraud case in which investors accused Kim and Lee as accomplices.
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In response, 14 investors including Mr. Won reportedly submitted additional evidence such as recorded conversations, claiming they can prove the 'collusion' between Chairman Kim and former chairman Lee.
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