Police reopen investigation into suspected fraud case involving Bithumb
Seoul Metropolitan Police Agency investigated Lee Jung-hoon, former chairman of crypto exchange operator Bithumb Korea, after a group of 14 investors filed their second fraud complaint in mid-July , they said.
Kim Byung-gun, chairman of BK Group, an entity specializing in medical and investment activities, is also under investigation into alleged fraud charges linked to Lee, they said.
In the complaint, investors said they offered 718 bitcoin and 7,793 Ethereum, worth 6.92 billion won ($ 6.01 million), to Kim in October 2018 after promising to take over Bithumb Korea and stated that an unlisted coin called BXA would be issued and listed. .
Contrary to Kim’s promise to investors and the media, however, Bithumb Korea’s takeover never materialized and all of their investments were paid to Lee, the investors argued, saying they believed Kim and Lee were accomplices.
Indeed, the sale of Bithumb Korea failed in September 2019. Kim reportedly made a deposit of $ 100 million to Lee but did not pay the balance. BXA coins were unlisted resulting in huge losses for investors.
A year ago, police conducted a similar investigation into the alleged Bithumb fraud case after a group of investors filed their first complaint.
Then, last month, Seoul prosecutors indicted Lee without detention for defrauding Kim over $ 100 million. But prosecutors dismissed investor claims that Lee and Kim had conspired in the allegedly fraudulent sales of BXA coins.
In response, the 14 investors reportedly submitted additional evidence, including tapes, to police, vowing to prove Lee and Kim’s collusion. (Yonhap)