A new investigative report by South Korean broadcaster JTBC has accused Lee Hee-jin, a controversial figure known as the ‘Cheongdam-dong stock millionaire,’ of providing kickbacks to a former senior executive at Upbit, one of the country’s largest cryptocurrency exchanges, in exchange for listing his digital assets. The report, which claims to have obtained a detailed gift list allegedly written by Lee, has reignited concerns about transparency and ethical practices in the crypto exchange listing process.
Alleged Meeting and Payment Timeline
According to JTBC’s exclusive report, Lee met with a Dunamu executive identified as Mr. Jeong—who served as the company’s chief operating officer and head of its listing review committee—in a private suite at a five-star hotel in Gangnam, Seoul, on July 1, 2020. The report alleges that shortly after this meeting, two cryptocurrencies linked to Lee, GOM2 and PICA, were listed on the Upbit exchange.
The alleged gift list reportedly shows that 10 million PICA coins were designated for Mr. Jeong and others, with a handwritten note stating the payment was ‘in preparation for Upbit listing.’ The payment is said to have occurred in November 2020, two months before PICA was officially listed on the platform.
Additional Alleged Payments and Internal Records
JTBC further reported that Lee maintained a separate record of unofficial payments in a group chat with his coin management team, which included his brother. This digital record allegedly noted an ‘unofficial payment of 10 million coins to the Upbit president’ and mentioned another 10 million coins paid to an individual believed to be a lobbyist for Dunamu, accompanied by a message to ‘take good care of things with Upbit, as we are close.’
After the listing, the price of PICA reportedly surged to over 700 won, bringing the value of the 10 million coins to approximately 7 billion won (about $5.1 million), according to the broadcaster.
Why This Matters for the Crypto Industry
These allegations, if proven, could have significant implications for the cryptocurrency exchange sector in South Korea. The case highlights ongoing concerns about the integrity of token listing processes, which are often opaque and can lead to conflicts of interest. Regulators in South Korea have been tightening rules around digital asset exchanges, and this report could accelerate calls for mandatory disclosure of listing criteria and stronger penalties for bribery.
For investors, the report serves as a reminder of the risks associated with coins that are listed through potentially non-transparent channels. The rapid price surge of PICA after its listing also raises questions about market manipulation and the role of insider information in crypto trading.
Conclusion
The JTBC report adds to the growing scrutiny of Lee Hee-jin, who has a documented history of stock fraud allegations. While the broadcaster’s claims are detailed, they remain allegations at this stage, and neither Lee nor Dunamu has issued a formal response. The story underscores the urgent need for clearer regulatory frameworks in the cryptocurrency industry to prevent unethical practices and protect retail investors.
FAQs
Q1: Who is Lee Hee-jin?
Lee Hee-jin is a South Korean figure known as the ‘Cheongdam-dong stock millionaire.’ He has a history of legal issues, including previous allegations of stock fraud. He is now at the center of new bribery allegations involving the Upbit cryptocurrency exchange.
Q2: What is the value of the alleged bribe?
According to the JTBC report, the alleged bribe consisted of 10 million PICA coins. After the coin’s price rose to over 700 won following its listing on Upbit, the value of those coins reached approximately 7 billion won, or about $5.1 million.
Q3: What are the potential consequences for Upbit and Dunamu?
If the allegations are substantiated, Upbit operator Dunamu could face regulatory penalties, reputational damage, and increased scrutiny from South Korean financial authorities. The case may also lead to stricter listing regulations across the entire cryptocurrency exchange industry in the country.
