Bithumb’s Hong Kong affiliates have reportedly faced a civil lawsuit for breach of contract.

According to the Korea Times on Tuesday, the lawsuit was initiated by a former partner of Bithumb in Thailand, who accuses the South Korean head office of unilaterally ending operations in Thailand and causing huge losses.

The Thai company, whose name has not yet been revealed, is said to be preparing a lawsuit in July against its Hong Kong-based Bithumb subsidiaries, including Bithumb Global Holdings and GBEX, as well as senior executives.

Hong Kong-based Bithumb entities are allegedly involved in the company’s previous plans to open Bithumb Exchange in Thailand, according to the plaintiff’s firm. The plaintiff alleges that some of the executives of these subsidiaries also hold leadership positions in Bithumb Korea.

After setting up a subsidiary in Thailand in 2018, Bithumb allegedly backed its plans in the country, causing significant damage to its Thai partner. The plaintiff claims that Bithumb had no real intention to set up a cryptocurrency exchange in Thailand and was trying to sell BXA coins by exaggerating the size of their global presence.

“After Bithumb stopped selling BXA coins, operations in Thailand became unnecessary, so the company unilaterally halted operations in Thailand, causing us great harm,” said the former Thai partner. A company spokesperson noted that Bithumb Global Holdings and GBEX own 49% of the Thai joint venture and are 100% of Bithumb Korea’s subsidiaries.

The plaintiff explained that they chose to sue the Bithumb companies in Hong Kong because they are more directly involved with Thailand than other Bithumb affiliates.

On the topic: Bithumb to ban employees from trading cryptocurrencies on the platform

The company added that it is considering filing a separate, similar lawsuit on behalf of a former Bithumb partner in Japan as well.

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

As previously reported, Bithumb has been involved in legal disputes over the marketing of the BXA token, which has never been released or listed. By selling BXA tokens, Lee Jong Hoon, president of Bithumb Korea and Bithumb Holdings, is allegedly involved in a large-scale scam that hurt investors as much as $25 million. Last year, South Korean authorities allegedly carried out several raids on Bithumb’s offices as part of an investigation and legal action.

Source: CoinTelegraph

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