Bithumb’s Hong Kong affiliates are being sued for breach of contract and the company’s top executives are charged with fraud.
The allegations were made by the cryptocurrency exchange operator’s previous Thai partner, who filed a separate legal case in Korea last September against executives and significant shareholders after the company abruptly ceased operations in Thailand.
According to a representative of the former partner in Thailand (The Thai firm remains unnamed), lawyer Kevin Lee from the Hong Kong firm Prince Chambers has been recruited for the company’s legal battle in Hong Kong as reported by Korea Times.
Bithumb’s Hong Kong-based companies were reportedly involved in the company’s earlier attempts to create a Bithumb exchange in Thailand, according to the plaintiff firm.
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Bithumb’s integrity, according to the former Thai partner, is called into doubt because the operator appears to have had no genuine goal of establishing an exchange in Thailand. It claims that the corporation made bogus promises from the beginning to sell BXA coins by inflating the company’s global presence.
BK Group Chairman Kim Byung-gun, who formerly sought to take over Bithumb, released the BXA currency as a virtual asset. After Kim abandoned that proposal owing to financial difficulties, and BXA failed to be listed on Bithumb, people who purchased the coins with the anticipation of an acquisition sued him and Bithumb board Chairman Lee Jung-hoon, who is considered as the company’s illegitimate owner. The former Thai partner said,
After Bithumb stopped its BXA coin business, its Thai operation became unnecessary, so the company ended its business in Thailand unilaterally, causing serious damage to us, BGH and GBEX collectively own a 49-percent stake in the joint venture in Thailand
Previously, South Korean government reportedly seized Bithumb in 2020, the complaint was connected to a $25 million token sale sponsored by Bithumb, as well as a prospective purchase by a Singapore platform, BTHMB, that never occurred. It was also accused of fabricating trading volumes.
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