Police have reopened an investigation that involves Bithumb about an alleged fraud case. The Seoul Metropolitan Police Agency is investigating Lee Jung-hoon, former chairman of Bithumb Korea. Reportedly, 14 investors had filed a 2nd fraud complaint in mid-July.
Kim Byung-gun, chairman of BK Group is also under investigation for the alleged fraud charges that are linked to Lee.
The investors had offered 718 BTC and 7793 ETH to Kim in October 2018. Kim, reportedly, had said that an unlisted coin BXA would get issued and listed. Contrary to the promise, Bithumb Korea never materialized the takeover. The investors believe that Kim and Lee are accomplices.
The sale of Bithumb Korea fell through in September 2018. Kim reportedly made a downpayment of $100 million to Lee but did not pay the balance. The BXA coins were not listed, leading to huge losses to investors.
Police had conducted a similar investigation a year ago when the investors filed their first complaint. The Seoul prosecutors then accused lee but let Kim out of $100 million defrauding charges.
In response, the 14 investors reportedly submitted additional evidence, including recordings, to police vowing to prove collusion between Lee and Kim.