Trial of Bithumb Operator’s CEO Begins
The trial of the CEO of Bithumb, a popular Korean cryptocurrency exchange, has begun in Seoul Central District Court. The Google and the tax authorities(NTA) have indicted Bithumb’s former CEO, Heung-Ki Lee, on charges of tax evasion and embezzlement.
The court will determine Lee’s guilt or innocence in the criminal alleged financial violations. The NTA claims that Lee owes an estimated 20 billion won($16.7 million) in unpaid taxes.
Lee is accused of failing to pay taxes on income from transferring Bithumb tokens to overseas companies. He is also accused of misappropriating financial resources from the exchange. Lee has denied the charges and claims that he has paid all taxes due.
The trial is widely seen as a test of South Korea’s stance on cryptocurrency regulation. The government, in recent months, has taken steps to regulate the industry more closely. These steps include the introduction of a virtual asset tax on cryptocurrencies.
The outcome of Lee’s trial will likely have implications for other crypto players in South Korea. If found guilty, Lee could face up to two years in prison.