Bithumb’s Hong Kong subsidiaries are reportedly at risk of civil breach of contract lawsuits.
According to a report in the Korea Times on Tuesday, the lawsuit is being initiated by a former Bithumb partner in Thailand who has accused the South Korean stock exchange of unilaterally suspending its business in Thailand and causing large losses.
The Thai firm – which remains nameless – is reportedly preparing to file lawsuits against Bithumb’s Hong Kong subsidiaries, including Bithumb Global Holdings and GBEX, as well as executives of the company in July.
According to the plaintiff, Bithumb’s Hong Kong-based companies were allegedly involved in the company’s previous plans to open a Bithumb exchange in Thailand. Some of the executives at these subsidiaries also hold senior positions at Bithumb Korea, the plaintiff reportedly said.
After starting a business in Thailand in 2018, Bithumb reportedly pulled its plans in the country and allegedly caused significant damage to its Thai partner. The plaintiff alleges that Bithumb had no real intention of setting up a crypto exchange in Thailand and attempted to sell its BXA coins by exaggerating the size of its global presence.
“After Bithumb closed its BXA coin business, its Thai operations became obsolete and the company unilaterally closed its operations in Thailand, which caused us serious damage,” said the former Thai partner. A company spokesman stated that Bithumb Global Holdings and GBEX jointly own 49% of the joint venture in Thailand and are wholly owned subsidiaries of Bithumb Korea.
The plaintiff stated that they have decided to file lawsuits against Bithumb’s Hong Kong offices as they are more directly related to Thai affairs than other Bithumb subsidiaries.
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The company added that the company is considering filing a separate similar lawsuit in Japan on behalf of Bithumb’s former partner.
Bithumb did not immediately respond to Cointelegraph’s request for comment.
As previously reported, Bithumb has been embroiled in legal controversy over promoting its BXA token, which has never been launched or listed. With the sale of BXA tokens, Lee Jung-hoon, CEO of Bithumb Korea and Bithumb Holdings, allegedly became embroiled in a major scam that caused investors up to $ 25 million in damage. Last year, South Korean authorities reportedly carried out several raids on Bithumb’s offices as part of a related investigation and trial.