A popular South Korean cryptocurrency exchange, Bithumb, is slapped with a lawsuit by a former partner based in Thailand.
Cryptocurrency exchanges have found their way below the crypto spotlight. As more people flocked into the market, exchanges were kept busy all the time. The increased demand for crypto this year further agitated this trend. Moving over the surge in popularity, a major crypto exchange fell under the purview of Hong Kong officials for breach of contract as well as fraud.
Back in 2018, Bithumb had reportedly rolled out a platform in Thailand. This platform, however, did not garner any support from the exchange, further paving the way for immense damages to the Thailand firm. While the firm’s name remains under the wraps, it had decided to sue the South Korean exchange for backing out.
Bithumb could be sued for breach of contract
As per a recent report by the Korea Times, the Thailand partner has been prepping to sue Bithumb Global Holdings, GBEX, and the executives involved.
Even though the BXA coin never made the cut, it was speculated that the platform was trying to sell BXA coins through its Thai partner. The former Thai partner elaborated on the same and pointed out that once the exchange pulled the plug on the BXA business, the Thai platform became unnecessary. This further caused the closure of the Thai firm and also some “serious damage.”
The spokesperson added,
“BGH and GBEX collectively own a 49-percent stake in the joint venture in Thailand, and are wholly-owned subsidiaries of Bithumb Korea, so we sued Bithumb Korea’s executives last year and decided recently to file lawsuits in Hong Kong against the Hong Kong subsidiaries and their executives, who are related to this issue more directly.”
The BXA coin put the exchange in the wrong light. The Seoul Metropolitan Police Agency’s Intelligent Crime Investigation Unit officers even went on to raid the exchange’s headquarters in Gangnam back in September 2020.