South Korean police summon Bithumb chairman for alleged fraud

The Seoul Metropolitan Police Agency has reportedly summoned Lee Jung Hoon, the chairman of Bithumb, for alleged fraud.

South Korea’s state-run news agency Yonhap reported Friday, saying that Lee, 44, is under investigation by the police. Lee is accused of pre-selling Bithumb’s native BXA tokens worth about 30 billion won (~$25 million) to investors and then not listing the token, which has allegedly led to investors’ losses.

Bithumb once issued BXA tokens concerning its acquisition by Singapore based BK Group, but that deal didn’t materialize. Lee is also charged with evading property abroad.

BK Group chairman Kim Byung-Gun, 57, is also accused of the alleged fraud, but he is reportedly not under police investigation.

The summon follows two raids on Bithumb in recent weeks by the police. On Wednesday, the Seoul Central District Court is said to have seized Kim’s shares in Bithumb. Accounting giant Samjong KPMG reportedly oversaw the seizure.

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