Bithumb subsidiaries in Hong Kong would face a civil lawsuit from a Thai partner

Bithumb subsidiaries in Hong Kong would face a civil breach of contract lawsuit.

According to a report in the Korea Times on Tuesday The lawsuit is initiated by a former Bithumb partner in Thailand who accuses the South Korean stock exchange of unilaterally ceasing its business in Thailand and causing large losses.

The Thai firm, which remains nameless, is preparing to file a lawsuit in July against Bithumb’s Hong Kong subsidiaries, including Bithumb Global Holdings and GBEX, as well as the company’s top executives.

Bithumb subsidiaries in Hong Kong would face a civil lawsuit from a Thai partner
Bithumb subsidiaries in Hong Kong would face a civil lawsuit from a Thai partner

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 rolled back its plans in the country and allegedly caused significant damage to its partner in Thailand. The plaintiff alleges that Bithumb had no real intention of setting up a cryptocurrency exchange in Thailand and attempted to sell its BXA coins by exaggerating the size of its global presence.

â ???? After Bithumb ceased its BXA coin business, its Thai operation became obsolete so the company unilaterally ended its business in Thailand, causing us serious harmâ ????said the former Thai partner. A company spokesman stated that Bithumb Global Holdings and GBEX jointly own a 49% stake in the joint venture in Thailand and are wholly owned subsidiaries of Bithumb Korea.

The plaintiff stated that it has chosen to file lawsuits against Bithumb companies in Hong Kong because they relate more directly to Thailand’s problems than other Bithumb subsidiaries.

The company added that the company is also considering filing a separate similar lawsuit on behalf of Bithumb’s former partner in Japan.

Bithumb did not immediately respond to Cointelegraph’s request for comment.

As previously reported, Bithumb has been embroiled in a legal controversy over promoting its BXA token, which has never been launched or listed. Through the BXA token sales, Lee Jung-hoon, CEO of Bithumb Korea and Bithumb Holdings, is believed to have been involved in a major scam that caused up to $ 25 million in damage to investors. In the past year, South Korean authorities reportedly carried out several raids on Bithumb’s offices as part of an investigation and legal action.

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