According to reports, Bithumb’s Hong Kong subsidiary is facing civil lawsuits for breach of contract.
According to a report by The Korea Times on Tuesday, the lawsuit is under Initiate The former Bithumb partner in Thailand accused the South Korean-based exchange of unilaterally stopping its operations in Thailand and causing heavy losses.
According to reports, the unnamed Thai company is preparing to file a lawsuit against Bithumb’s Hong Kong subsidiaries (including Bithumb Global Holdings and GBEX) and company executives in July.
According to the plaintiff company, Bithumb’s Hong Kong entity was alleged to have participated in the company’s previous plan to open a Bithumb exchange in Thailand. According to reports, the plaintiff stated that some of the executives of these subsidiaries still hold senior positions at Bithumb Korea.
According to reports, after establishing an entity in Thailand in 2018, Bithumb abandoned its plans in the country, allegedly causing significant losses to its Thai partners. The plaintiff claimed that Bithumb had no real intention to establish a cryptocurrency exchange in Thailand and tried to sell its BXA tokens by exaggerating the scale of its global business.
The former Thai partner said: “After Bithumb stopped the BXA token business, its Thai business became unnecessary. Therefore, the company unilaterally ended its business in Thailand, which caused serious damage to us. The company’s spokesperson pointed out, Bithumb Global Holdings and GBEX jointly own 49% of the Thai joint venture and are a wholly-owned subsidiary of Bithumb Korea.
The plaintiffs stated in detail that they decided to file a lawsuit against Bithumb’s Hong Kong entities because they have a more direct relationship with the Thailand issue than other Bithumb subsidiaries.
The company added that it is also considering filing a separate similar lawsuit on behalf of Bithumb’s former partners in Japan.
Bithumb did not immediately respond to Cointelegraph’s request for comment.
As previously reported, Bithumb has been involved in Promote its BXA token, Has never been launched or listed. Through the BXA token sale, Lee Jung-hoon, the chairman of the board of Bithumb Korea and Bithumb Holdings, was suspected of participating in major fraud, causing investors to lose up to 25 million US dollars.According to reports, the South Korean authorities last year Conducted multiple raids on Bithumb’s office As part of related investigations and court proceedings.