Top executives and even the exchange owner of Bithumb Hong Kong were indicted with fraud charges. The lawsuit will be filed by Bithumb’s former Thai partner for breach of contract.
Bithumb’s Hong Kong subsidiaries are being sued for breach of contract, and top officials, including the exchange’s owner, have been charged with fraud.
Criminal charges have been filed against the top executives for a scam totalling 100 billion won.
The action will be brought by the exchange’s former Thai partner, who already launched a complaint in South Korea last year.
Following the discovery that Bithumb is intending to reopen an exchange in Thailand, the former partner will launch a civil complaint against two companies, Bithumb Global Holdings (BGH) and GBEX.
Bithumb stated plans to build subsidiaries in Japan and Thailand in 2017, however Thai partners recognized by 2018 that the executives were just making hollow promises to sell the BXA token produced by BK Group Chairman Kim Byung-gun, who promised the token will be listed on Bithumb soon.
In 2018, he sought and failed to overtake Bithumb, as well as his ambitions to sell the group’s token.
The Thai partner said,
“After Bithumb stopped its BXA coin business, its Thai operation became unnecessary, so the company ended its business in Thailand unilaterally, causing serious damage to us,”
“BGH and GBEX collectively own a 49% 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 failure to launch the BXA token on Bithumb after collecting a hefty downpayment resulted in huge losses for the investors.
The Thai partners disclosed that they decided to file a lawsuit in Hong Kong after seeing no action taken against the perpetrators in South Korea and that the case has been waiting for nine months at Suseo Police Station in Seoul.
In the near future, the organization aims to sue Bithumb in Japan.