The trial of Lee Jung-hoon, the former chief executive of South Korean crypto exchange Bithumb, has started in Seoul’s criminal court. Lee is facing charges on fraud and embezzlement concerning a 2016 token sale dubbed BXA.
The defendant is accused of collecting approximately 13.5 billion won (around $11.78 million) for the token sale from investors but failing to fulfill the project’s proclaimed vision.
Prosecutors claim that Lee utilized the majority amount of funds collected during the token sale for personal expenditures, including buying real estate and other luxuries for himself. According to their case, over 6.7 billion won (about $5.7 million) was used to purchase BXA tokens from probably related corporations.
The court is expected to bring forward more details related to the token sale and the workings of the Bithumb exchange, possibly bringing more clarity regarding regulations or enforcement of existing cryptocurrency-related laws in South Korea.