South Korea-based crypto exchange Bithumb is in danger due to the consequences of the lawsuit against its former owner.
Bithumb, one of the popular Asian-based cryptocurrency exchanges, is having troubles due to litigation between its partners. Bithumb is having trouble finding clients due to legal developments regarding former owner Lee Jung-hoo. Finally, South Korean prosecutors demanded an eight-year prison sentence for Lee Jong-hoo. This demand, filed due to fraud, may also affect the crypto exchange.
Selling Bithumb Shares to FTX May Get In Trouble
Bithumb recently started negotiations with FTX for the sale of shares. Powerful cryptocurrency exchange FTX declined to comment on the shares. However, the South Korean stock market expressed that it is considering.
The viability of such a deal could be jeopardized after a lawsuit against the former owner of the South Korean exchange. Lee Jung-hoo was first indicted by South Korean prosecutors last year. The allegations that Jung-hoo defrauded his partner during the acquisition of the stock market came to the fore. It is alleged that Jung-hoo stole $70 million in money with his fraudulent conduct during the acquisition process.
The pending lawsuits and legal processes eventually turned into an 8-year prison sentence for Jung-hoo. On the Bithumb side, although there is no problem in terms of lawsuits and legal processes, the FTX agreement may be in danger.
