Thailand and Japan are currently engaged in a civil suit over the Bithumb exchange, in which the Thai government claims the company has broken the country’s anti-money laundering laws. The exchange has reportedly appointed an international law firm to handle the matter, but the law firm has yet to file a response. Reportedly, the issue arose when the president of Bithumb’s subsidiary, Bithumb Vietnam, defrauded investors.
Big Tech (or Bithumb) has been accused of violating statutory duties in Thailand by its Thai partner, Bitthumb. The partner was allegedly not paid correctly, and the Thai partner filed a complaint for contract breach. It is alleged that Big Tech’s legal team has failed to contact the Thai partner, and have instead asked the company to pay the Thailand partner immediately without any details.
Despite the unsuccessful launch of Bithumb’s blockchain-based platform, trading is still going on as usual. The company’s link with Thai regulators was announced last week and has led to an investigation by the Thai Securities and Exchange Commission (SEC). The commission claims Bithumb Hong Kong subsidiaries are liable for Thai partner iBank’s failure as they have been allegedly operating illegally in Thailand.
Bithumb’s subsidiaries in Hong Kong have reportedly been facing a civil suit for breach of contract.
According to a report published Tuesday by the Korea Times, the complaint was filed by a former Bithumb partner in Thailand, who accuses the South Korean exchange of unilaterally ending its operations in Thailand and causing significant losses.
The Thai company – which shall remain unnamed – is reportedly preparing to file a complaint in July against Bithumb’s Hong Kong subsidiaries, including Bithumb Global Holdings and GBEX, as well as its management.
According to the complainant company, Bithumb’s units in Hong Kong were involved in the company’s earlier plans to open a Bithumb stock exchange in Thailand. According to the complainant, some managers of these subsidiaries also hold senior positions in Bithumb Korea.
After settling in Thailand in 2018, Bithumb reportedly abandoned its plans in the country, causing significant harm to its Thai partner. The plaintiff argues that Bithumb did not really intend to establish a cryptocurrency exchange in Thailand and that it tried to sell its BXA tokens by exaggerating the size of its global presence.
After Bithumb stopped trading BXA parts, the operation in Thailand became useless, so the company unilaterally stopped its operations in Thailand, which caused us great harm, the former Thai partner said. A company spokesman said Bithumb Global Holdings and GBEX jointly own 49 percent of the joint venture in Thailand and are wholly owned subsidiaries of Bithumb Korea.
Prosecutors said they had decided to file a complaint against Bithumb’s Hong Kong divisions because they are more directly affected by the problems in Thailand than Bithumb’s other subsidiaries.
Related: Bithumb bans employees from trading cryptocurrencies on its platform
The company added that it is considering filing a similar complaint on behalf of a former Bithumb partner in Japan.
Bithumb did not immediately respond to Cointelegraph’s request for comment.
As previously reported, Bithumb was involved in a lawsuit over the promotion of its BXA token, which was never launched or listed. Through the sale of BXA tokens, Lee Joon-hoon, the chairman of Bithumb Korea and Bithumb Holdings, was allegedly involved in a major scam that damaged investors by up to $25 million. South Korean authorities reportedly conducted several raids on Bithumb’s offices last year as part of a related investigation and trial.
Privacy settings,How Search works,libel