[비즈한국] Lee Jung-hoon, CEO of Bithumb Asset, has won a final victory in a civil lawsuit against Kim Byung-gun, Chairman of BK Medical Group, regarding the failed listing of 'Bithumb Coin (BXA Token).' The Supreme Court recently dismissed the appeal filed by Chairman Kim regarding a claim for damages, thereby confirming the rulings of the first and second trials in favor of CEO Lee. Following his acquittal in previous criminal proceedings, CEO Lee has now avoided civil liability, effectively putting an end to the legal risks surrounding the coin listing fraud case that spanned over six years.
On August 12, the Second Division of the Supreme Court issued a decision to dismiss the 12 billion won damages suit filed by BK Medical Group Chairman Kim Byung-gun against Bithumb Asset CEO Lee Jung-hoon without further hearing. A dismissal without hearing means the Supreme Court ends the case without re-examining the grounds for appeal, thereby confirming the results of the second trial. Chairman Kim had already lost in the first trial in 2024 and the second trial in April 2026, bringing the six-year civil litigation to a close with CEO Lee’s victory.
The legal battle between Chairman Kim Byung-gun and Bithumb founder CEO Lee Jung-hoon stemmed from the attempted acquisition of Bithumb and the failed listing of BXA tokens. In October 2018, Chairman Kim entered into a contract with CEO Lee's side to acquire a stake in Bithumb Holdings for $347.54 million with the goal of joint management of Bithumb.
Chairman Kim argued that the stock purchase agreement stipulated that both sides would invest $25 million each, and the remaining amount would be raised through BXA token sales or by attracting financial investors (FI). To this end, he claimed, it was agreed that Chairman Kim would receive BXA tokens for free and that the tokens would be listed on Bithumb to allow for their sale.
However, by September 2019, Chairman Kim failed to pay the balance of the acquisition price. The Bithumb listing of BXA tokens also fell through. Although Bithumb had teased the listing of BXA tokens in January 2019 and held an airdrop event for users, the listing did not materialize as financial authorities at the time sanctioned indirect initial coin offerings (ICO) via overseas entities. Having failed to recover his deposit of approximately $100 million, Chairman Kim sued CEO Lee for fraud and also filed a claim for damages to recover a portion of the deposit.
During the trial, Chairman Kim argued that the acquisition contract itself was unfair. He further claimed that due to CEO Lee’s words and actions, he believed the BXA coin would be listed on Bithumb, and since he entered the contract under that premise, the agreement was based on deception and error. He also alleged that CEO Lee's side had internally decided to halt the listing without informing him and obstructed external investments, preventing him from raising the acquisition funds.
However, the civil court did not accept Chairman Kim's claims regarding the contractual acquisition fund-raising method, the free allotment of BXA coins, the guarantee of a Bithumb listing for BXA coins, and the use of BXA token sales proceeds to pay the acquisition price, citing a lack of evidence. The court also took into account that Chairman Kim possessed considerable knowledge and experience in virtual asset investment, making it difficult to claim he was deceived or mistaken. On May 20, the appellate court upheld most of the first trial's ruling and maintained the original judgment even after reviewing additional evidence submitted by Chairman Kim’s side during the second trial.
In particular, the court found that Chairman Kim was also responsible for the failed BXA coin listing. It was revealed that Chairman Kim had sold BXA coins to domestic investors starting in October 2018 without informing CEO Lee’s side. In December of that year, Chairman Kim even held a press conference claiming, "We have secured 100% of the acquisition funds," and that "BXA tokens are sold only overseas and the proceeds will not be used for the acquisition." CEO Lee’s side only became aware of the pre-sale of BXA tokens in April 2019, and the court determined that the listing did not proceed due to the burden caused by the controversy.
In the second trial, Chairman Kim’s side added a claim that CEO Lee committed illegal acts such as threatening investors or engaging in obstructionist activities to exclude him from joint management, thereby hindering his fundraising. However, the appellate court dismissed the claim, stating, "There is no evidence to support these claims as facts."
With the Supreme Court also dismissing Chairman Kim’s claims, the civil and criminal litigation surrounding the Bithumb acquisition and BXA token listing, which had been ongoing since 2020, ended in victory for CEO Lee. CEO Lee had been indicted on charges of 110 billion won in coin listing fraud but was acquitted in both the first and second trials, and after the Supreme Court dismissed the appeal in March 2025, he has now avoided criminal liability as well.
While this ruling effectively clears CEO Lee Jung-hoon of the coin listing fraud charges, the losses incurred by investors who purchased BXA tokens at the time remain difficult to recover. Although some investors sued CEO Lee and Chairman Kim for fraud at the end of 2019, it was confirmed that they were not recognized as victims by the court. It appears that most investors who filed separate civil claims for damages have also lost their cases.
Bithumb has not released an official statement regarding the outcome of this damages lawsuit.