S Korean Court Jails Pro Golfer, Ex-Crypto Exchange Chief for Altcoin Price Manipulation

A South Korean court has jailed a celebrity pro golfer and the former head of the crypto exchange Bithumb for bribery and attempting to manipulate altcoin price levels.

Per Hankyoreh , the former Bithumb CEO Lee Sang-jun was sentenced to two years in prison for ordering his staff to list an unnamed altcoin.

The same court also jailed the former golfer Ahn Sung-hyun for four and a half years at the same trial.

Ahn is best known in South Korea as the husband of Song Yu-ri, an actress and former member of the K-pop group F.inKL.

Altcoin Price Manipulation Accusations

A branch of the Seoul Southern District Court jailed the duo on December 26. The Presiding Judge Jeong Do-seong called the crime “an act that harms the fairness and transparency of the cryptoasset market” and said it could “result in huge losses for honest investors.”

The Seoul Southern District Court, in Seoul, South Korea. (Source: HoRo-Jo [CC BY-SA 4.0])

Prosecutors said that the former CEO took 3 billion won (over $2 million) in cash and 400 million won ($271,000) worth of “luxury watches, luxury bags, and high-end restaurant membership cards.”

Lee, the court ruled, took the money from the reclusive businessman Kang Jong-hyun (42) in 2021.

In exchange, the ex-CEO agreed to list “a specific virtual asset to be listed on the Bithumb exchange.”

‘Bithumb Secret Owner’ Also Jailed

Prosecutors have previously accused Kang of trying to artificially spike the price of low-cap altcoins by listing them on Bithumb.

Kang, a close friend of both Ahn and Lee, was also jailed for a year and a half. The court heard that Kang provided Ahn with the money and goods the latter then used to bribe Lee.

However, the court also heard that Ahn pocketed some of the funds he claimed Lee had demanded. The ex-golfer then used these stolen funds to buy shares.

Prosecutors explained that Kang gave Ahn around $2 million worth of cash, but added that there was “no significant evidence to suggest that” he handed Lee “even a portion of this.” The judge said:

“The nature of the crime is heinous, as [Ahn] embezzled 2 billion won to buy stocks.”

Kang was convicted of a breach of trust, and the controversy over his alleged “secret ownership” of Bithumb continues.

The same court ruled found an unnamed cryptoasset issuer not guilty of playing a part in the affair.