Former Bithumb CEO Lee Sang-jun has been sentenced to prison for his involvement in a fraudulent token listing scheme. The Seoul Southern District Court found him guilty of accepting cash and gifts from businessman Kang Jong-hyun in exchange for listing a coin on the popular South Korean crypto exchange.
According to reports from local news outlet The Hankyoreh, Lee Sang-jun has been sentenced to two years in prison and ordered to pay a fine of 52 million won ($35,367) for his role in the scheme. Kang Jong-hyun allegedly paid 3 billion won (approximately $2 million) in cash and over $272,000 worth of luxury items such as watches, designer bags, and exclusive restaurant memberships to secure the listing on Bithumb. Kang received a sentence of one year and six months for breach of trust charges.
The fraudulent scheme also involved former professional golfer Ahn Sung-hyun, who acted as a middleman in the bribery scandal. Ahn deceived Kang by taking a large portion of the money intended for Lee. As a result, Ahn was sentenced to four years and six months in prison for his involvement.
Bithumb is known as South Korea’s largest crypto exchange by daily trading volume, and a coin listing on the platform can significantly impact prices. Recently, the prices of PONKE and Raydium soared after Bithumb announced support for spot trading for these Solana-based crypto assets.
This scandal highlights the importance of transparency and integrity in the cryptocurrency industry. Investors should be cautious when trading on platforms that engage in fraudulent activities. Stay informed by subscribing to email alerts and following price action on social media platforms like Twitter, Facebook, and Telegram.
Image Credit: Midjourney.