South Korean prosecutors are asking a judge to sentence Bithumb's former chairman Lee Jung-hoon to 8 years in prison, as "the amount of damage is very large, and the damage is especially great for ordinary crypto investors," a local news outlet Yonhap News Agency reports.
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In October 2018, Lee offered BK Group chairman, Kim Byung Gun, to acquire Bithumb, by purchasing the so-called "bithumb coin" (BXA). As part of the deal, Lee also promised to list the token on the exchange.
Kim paid Lee $25 million for BXA. Other private investors had also made a pre-purchase of BXA from Lee for a total sum of $45 million. However, Bithumb never listed BXA, which made investors suffer significant losses. The verdict is expected to be delivered on December 20.
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