South Korea: Former professional golfer and former CEO of a cryptocurrency exchange sentenced to prison for altcoin price manipulation
A court in South Korea has sentenced the former CEO of the Bithumb cryptocurrency exchange and a famous professional golfer to prison. Both were convicted of taking bribes and manipulating altcoin prices, causing significant harm to the financial market.
According to local media, former CEO Lee Sang-jun was sentenced to two years in prison for ordering his employees to list an undisclosed cryptocurrency. Meanwhile, golfer Ahn Sung-hyun was sentenced to four and a half years in prison for his role in the case.
Price manipulation harming the market
The Southern District Court of Seoul issued the ruling on December 26, emphasizing that the actions of these two individuals undermined the fairness and transparency of the cryptocurrency market, causing substantial losses to honest investors.
According to records, Ahn received money and valuable gifts from a businessman named Kang Jong-hyun, including over 3 billion won in cash and luxury assets such as watches and designer handbags. This money was used to bribe Lee to list a certain digital currency on the Bithumb exchange.
Allegations and betrayal among accomplices
Prosecutors allege that Kang exploited the listing of altcoins to inflate the value of low-cap cryptocurrencies, negatively impacting the market. However, it is noteworthy that Ahn embezzled part of the money Kang provided, using it to purchase stocks instead of transferring the entire amount to Lee as initially agreed.
The court concluded that Ahn's actions were particularly serious and fraudulent, using 2 billion won for personal gain.
The case has sparked controversy over Bithumb
In addition, Kang, who is believed to have close ties with both Ahn and Lee, was also sentenced to 18 months in prison for breach of trust. He is suspected of being the 'secret owner' of Bithumb, but this has not yet been fully clarified.
The case once again highlights the vulnerabilities in the cryptocurrency industry and the importance of oversight to protect investors.