Bithumb subsidiaries in Hong Kong are expected to face a civil lawsuit from their Thai partner
Bithumb’s Hong Kong subsidiaries are reportedly at risk of civil breach of contract lawsuits.
As the Korea Times reported on Tuesday, the lawsuit is being initiated by a former partner of Bithumb in Thailand, who accuses the South Korean stock exchange of unilaterally closing its business in Thailand and causing great damage.
The Thai company, which has yet to be named, is due to prepare a lawsuit in October against Bithumb’s Hong Kong-based subsidiaries, including Bithumb Global Holdings and GBEX, and executives of the company.
According to the plaintiff, Bithumb’s Hong Kong-based companies are allegedly involved in the company’s previous plan to open a Bithumb exchange in Thailand. Some of the executives at these subsidiaries also hold senior positions at Bithumb Korea, the plaintiffs said.
After establishing an organization in Thailand in 2018, Bithumb reportedly pulled back from his plans in the country and caused significant damage to its Thai counterpart. The plaintiff alleged that Bithumb had no real intention of setting up a crypto exchange in Thailand and tried to sell its BXA coins by exaggerating the size of its global presence.
“After Bithumb stopped trading BXA coins, its Thai operations became unnecessary and the company unilaterally closed its business 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.
Plaintiffs made it clear that they have decided to file a lawsuit against the Hong Kong Bithumb companies for being more directly involved in Thai affairs than other Bithumb subsidiaries.
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The company added that it is also considering filing a 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 a BXA token that has never been launched or listed. Through the BXA token sale, Lee Jung-hoon, CEO of Bithumb Korea and Bithumb Holdings, allegedly participated in a massive scam that cost investors up to $ 25 million. Last year, South Korean authorities reportedly carried out multiple raids on Bithumb’s offices as part of a related investigation and trial.