Former Bithumb CEO Goes to Prison for Accepting Bribes to List Crypto

Lee Sang-jun, the former CEO of South Korean crypto exchange Bithumb, has been sentenced to two years in prison for his involvement in the bribery and market manipulation scheme. Along with him, the South Korean court also sent Ahn Sung-hyun, a well-known golfer, to prison for four-and-a-half years.

Manipulating the Crypto Market

The trial on December 26 revealed the details of how the two individuals tried to manipulate the cryptocurrency market and inflated the price of multiple altcoins.

Bithumb is one of the largest cryptocurrency exchanges in South Korea. According to Coinmarketcap.com, it handled $1.26 billion in spot trades in the past 24 hours, making it the 18th largest crypto trading venue globally.

The South Korean prosecutors detailed that Lee agreed to list altcoins on Bithumb in exchange for bribes. He received around 3 billion Korean won (roughly $2 million), luxury watches, high-end bags, and exclusive restaurant memberships.

Listing less-popular altcoins on Bithumb artificially inflated their price, thus directly benefiting the promoters and founders.

A Well-Planned Scheme

Another figure, Kang Jong-hyun, a reclusive businessman and close associate of both Lee and Ahn, was also involved as he directly received the bribes. He has also been sentenced to one and a half years in prison, and now his possible ownership of Bithumb is under investigation.

While Kang received the bribes, Ahn played a key role in plotting the scheme, and his ties to Kang and Lee were also crucial. Ahn received the bribes from Kang and passed them to Lee for the listings.

The court also criticized Anh's actions as “heinous” as he even siphoned the bribery proceeds for his personal gain. He also pocketed 2 billion Korean won (about $1.5 million), acting as the middleman in the bribery scandal, and used the money to make personal investments.

However, Lee was not the first Bithumb executive to face criminal allegations. Many other top Bithumb associates have also had conflicts with the law in the past.

Lee Jung-hoon, the former chairman of Bithumb, was charged with fraud involving $70 million related to the exchange's operations; however, he was acquitted in January 2023. Kang Jong-hyun, who is recognized as the de facto owner of Bithumb, was also arrested in February 2023 for manipulating the stock price of Bithumb affiliates and misappropriating corporate funds. Park Mo, another major shareholder of the Korean exchange, also faced investigation for embezzlement and stock manipulation, but he was found dead in front of his home in December 2022.