Asia Blockchain Updates 2019.12.16 Korea Sentenced Upbit 7years and 1Billion of Fine for Fraud, Byte Dance jumped into Blockchain, Bithumb Coin is in Scam Scandal

Korea Prosecution Ask for 7years imprisonment and 1Billion KRW of Fine to Upbit Exchange,
Byte Dance Establishes Blockchain, AI company with Chinese State-Owned Media group,
BXA, Bithumb Token is in Trouble, Class Action towards Bithumb Holdings.

Asia Blockchain Updates 2019 by Amy Kang
Asia Blockchain Updates 2019 by Amy Kang

Korea Prosecution Demands 7 years imprisonment for Upbit Operators for Fraud

Korea Prosecution Demands 7 years imprisonment for Upbit Operators for Fraud

According to the Korea legal prosecutor’s office on Dec 15th, the prosecution asked for 7years of prison labor and 1 Billion KRW (About 853,000 USD) to Mr. Song, chairman of the Dunamu Investment, an operator of Upbit at the trial due to the fraud and preliminary records, etc. held on the 12th trial of the Seoul Southern District Court.

The member of the Financial Board, Mr. Nam, who was handed over to the trial, and Mr. Kim, the quant team leader, were sentenced to three years in prison and four years in prison each.

They are accused of creating fake accounts in September-November 2017 and manipulating the computer to deposit 121.2 billion won (about 103 Million USD) worth of assets.

According to the prosecution, Upbit manipulated the transaction of the orders in the exchange to make the deals were booming by repeating the order submission and cancellation at a price that is unlikely to be executed based on the false assets. It was found that the worth of the transactions that those false accounts made with the exchange member is about 1.80 trillion KRW (about 1.5 Billion USD).

The prosecution found that the fake account of Upbit has sold 1,500 non-existing Bitcoins to more than 26,000 Upbit members and stole about 149.1 billion won(about 127Million USD).

Upbit argued that fraud was not established because Upbit actually had a certain amount of BTC at that moment.

Byte Dance to Establish AI, Blockchain Company with PengPai Audio company

ByteDance and Shanghai Dongfang Newspaper Teamed up for Establishing blockchain company Pengpai

Byte Dance, a developer of video-sharing platform Tik Tok, establishes a joint venture (JV) with Chinese state-owned media, Shanghai Dongfang Newspaper and develops a blockchain-based AI business model. The joint venture’s specific business plan was not disclosed yet, but according to a Byte Dance official, it is expected to focus on ‘digital copyright’.

According to Bloomberg, the joint venture was established on December 10 in Jinan, Shandong Province in China. The capital stock is about 1.4 million USD, 49% of the shares are owned by Byte Dance and the remaining 51% by Shanghai Dongfang Newspaper.

Byte Dance is currently operating a Chinese news app called Zintou Xiao(今日头条), and also is well-known as a developer of Tik Tok, a short video sharing platform under 15 seconds. Tik Tok has about 500 million users all around the world and ranks second in the Apple Store. The Shanghai Dongfang Newspaper is run by Shanghai United Media Group, which is sponsored by the Shanghai local government, providing online news service ‘The’.

According to the CoinTelegraph, the partnership between Byte Dance and Shanghai Dongfang Pepar is expected to research and develop the copyright-related models of digital video by using artificial intelligence and blockchain technology.

“The joint venture will focus on a short video and digital rights,” said one of the Byte Dance spokesmen.

BXA, a.k.a Bithumb Coins Owners Conduct Collective Lawsuit Against Bithumb

Owners of BXA,Will conduct collective lawsuit against bithumb

BXA tokens, known as Bithumb Coins' owners will conduct a collective criminal case against Lee Jung-hoon, Bithumb’s real owner, consultant of Bithumb, and Kim Byung-gun, a chairman of BK Group. The plaintiff claims that join-defendants have been deceiving buyers like BKA tokens are issued by Bithumb itself even though BKA tokens are irrelevant with Bithumb. The plaintiffs also insisted that BTHMB Holdings, the major shareholder of Bithumb, failed to acquire Bithumb, and it is obvious that the company, Bithumb is responsible for the BXA token.

The beginning of the case is started from when BTHMB Holdings was attempted to acquire Bithumb. In 2018, BTHMB Group’s Chairman Kim Byung Gun, the largest shareholder of Bithumb, established BTHMB Holdings (BXA Consortium) in Singapore. BTHMB Holdings issued BXA tokens to finance the acquisition of Bithumb and sold about 30 billion KRW( about 255Million USD). In October of the same year, BTHMB Holdings signed a contract to acquire Bithumb Holdings, which operates Bithumb exchange and completed to distribute payment in three installments.

However, BTHMB Holdings, at last, could not pay the balance of 270 billion KRW (about 230Billion USD). As a result, the price of BXA tokens has been dumped by about 200%. BXA token buyers hired a Law firm, Okims and Okims have been preparing to sue on their behalf.

Currently, about 60 victims of BKA tOken sales case are preparing for class action, with only 7.6 billion KRW (6.5 Million USD) about in damages. Okims, a law firm, will recruit additional victims and file complaints and accusations by the end of December 2019.

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