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[Alpha Biz=(Chicago) Reporter Paul Lee] Kang Jong-hyun (41), known as the real owner of the virtual currency exchange Bithumb, denied allegations of breach of trust and embezzlement by related companies in his first trial.

"Kang has no false disclosure, such as spreading positive information, and there is no intention regarding the breach of trust," Kang's lawyer said at a hearing held at the 12th Criminal Department (Presiding Judge Dang Woo-jeung) of the Seoul Southern District Court on the 19th.

As for the charges of embezzling money from Bithumb's affiliated companies, he said, "We acknowledge the fact that they withdrew money," but added, "We need to examine in detail whether there is a contract or not." It is argued that all matters should be considered more than withdrawal itself.

He admitted to ordering the destruction of evidence ahead of the prosecution's search and seizure and fleeing an employee who was managing a borrowed-name account.

However, Kang's lawyer added, "There was no detailed instruction regarding the escape, but only provided the escape funds."

Kang, who attended the trial on this day, left the re-judgment without saying anything.

Cho, CEO of Bithumb, who was put on trial with Kang, and Cho, who was in charge of accounting, ordered by Kang, manage borrowed-name bank accounts Kim, who fled, also denied the charges at the trial.

Their lawyers said they only did their work according to Kang's instructions and that they did not intend to do so, adding that it constitutes only aiding and abetting under criminal law and that charges such as embezzlement and breach of trust are unfair.

According to the prosecution, Kang and others are suspected of embezzling 62.8 billion won from Bithumb affiliates from 2020 to September last year.

It is also suspected of causing 32 billion won in damage by collecting 35 billion won in unfair profits from fraudulent transactions, such as raising stock prices after issuing convertible bonds (CB) in 2021, and transferring a call option to buy CB back at a low price.

Prosecutors seized and searched Bithumb affiliates such as Vident, Inbiogen and Bucket Studio in October last year after finding out that Kang and others had siphoned off the company's money. Kang was found to have ordered an employee of an affiliated company to destroy evidence and fled Kim, who was managing a borrowed-name account.

 

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