By Shelly Melancon (Switzerland)
Bithumb is embroiled in another legal controversy, as a company in Thailand has slammed it with a civil lawsuit. The company claims that the South Korean-based crypto platform is responsible for some financial losses it incurred on a business. Bithumb is the leading cryptocurrency platform in South Korea. The crypto platform has been the subject of some lawsuits in the past, especially from South Korean regulatory bodies.
In the new legal controversy, the Thailand company is accusing Bithumb of shutting down its exchange business in Thailand, thereby causing immeasurable financial loss to it. Reports reveal that the company is claiming to be a partner of the crypto platform in a failed business, which Bithumb is responsible for. The lawsuit is premised on a breach of contract. Parties to the lawsuit include Bithumb’s Hong Kong subsidiaries, including some of the exchange’s top officials.
Thai CompanyAlleges Financial Losses Caused by Bithumb’s Actions
The said company has asserted that Bithumb had partnered with it to establish an exchange in Thailand. However, after setting up the exchange in 2018, Bithumb withdrew. According to the Thai firm, Bithumb’s withdrawal caused it to run into extensive losses. On the contrary, the complainant alleged that the exchange’s intention to set up a base in the Asian country was not genuine. Rather, it was done in a bid to promote its BXA token which it never launched nor listed. It said Bithumb promoted the token by inflating its user base.
Also read:Furthermore, after Bithumb stopped promoting the token, it saw no need to continue its Thailand exchange operations. As alleged by the Thai firm, Bithumb Global Holdings and GBEX owned a 49% stake in the partnership and fully belonged to Bithumb Korea. The lawsuit was initiated against Bithumb’s Hong Kong ventures rather than any other subsidiary of the exchange due to its proximity to the issues that arose in Thailand.
Korean Authorities Crack Down on Bithumb’s Executives
In light of the BXA token, some Bithumb executives came under heavy legal pressure from South Korean authorities as a result of fraudulent acts the token it was used to perpetrate As earlier mentioned, Bithumb’s BXA never launched nor was it listed. Chairperson of the South Korean exchange, Lee jung-hoo was found to have been involved in a 30 billion won ($25 million) scam from sales of the BXA token. Bithumb’s Korea office was raided by South Korean authorities three separate times last year and some of its executives’ shares were seized in view of the scam incident.
Meanwhile, as recently reported by Tokenhell, Bithumb restricted its employees from using the exchange’s trading services in order to promote transparency and prevent market manipulation. The South Korean exchange also released a number of guidelines that its employees are supposed to abide by, one of which is, they are not allowed to trade during office hours
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