- Former Bithumb CEO Lee Sang-jun has been sentenced to two years in prison for accepting bribes to list cryptocurrencies on the exchange
- Professional golfer Ahn Sung-hyun received a four-and-a-half-year prison term for his role in the scheme
- The listings inflated the price of multiple altcoins on other exchanges, allowing founders to profit
A South Korean court has sentenced former Bithumb CEO Lee Sang-jun to two years in prison for accepting bribes to list specific cryptocurrencies on the exchange, resulting in market manipulation. Lee was part of a trio that helped boost the value of altcoins for financial gain as well as accepting money for listings. Professional golfer Ahn Sung-hyun received a four-and-a-half-year sentence, while businessman Kang Jong-hyun was sentenced to one and a half years for their role in the scheme.
Bribery and Market Manipulation
The Seoul Southern District Court found that Lee Sang-jun accepted approximately 3 billion won (around $2 million) in cash, along with luxury items such as high-end watches and designer bags, in exchange for listing certain altcoins on Bithumb. This practice artificially inflated the prices of these cryptocurrencies on other exchanges, benefiting their promoters and founders, who sold into the pumps.
Golfer Ahn acted as an intermediary in the scheme, receiving the bribes from Kang and passing them to Lee. The court criticized Ahn’s actions as “heinous,” noting that he embezzled a significant portion of the bribes for personal investments. Kang, a reclusive businessman and close associate of both Lee and Ahn, was also implicated in providing the bribes and received a one-and-a-half-year prison sentence.
Yet More Bad News for Bithumb
This sentencing of its former CEO is the latest in a number of legal challenges involving Bithumb executives. In 2021, former chairman Lee Jung-hoon was charged with fraud related to a failed takeover of the company, although he was later acquitted. Additionally, Kang, recognized as the de facto owner of Bithumb, was arrested in February 2023 for manipulating stock prices of Bithumb affiliates and misappropriating corporate funds.
Bithumb will hope that it can put these issues behind it and start 2025 with a cleaner slate.
