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South Korean cryptocurrency exchange Bithumb is reportedly considering a public listing on the Nasdaq, which is known for its focus on technology companies. This potential move was revealed during a shareholders’ meeting held on September 30, according to a local news outlet. Bithumb aims to achieve this listing in the latter half of next year and has appointed Samsung Securities to act as the lead manager for this process.
Strategic Restructuring for IPO Success
In a strategic effort to fortify its initial public offering (IPO) prospects, Bithumb took a significant step in March by splitting its Human Resources division. This restructuring is intended to allow the company to concentrate more effectively on its core operations as a virtual asset exchange. As a part of this strategy, the exchange plans to transition its new business segment into a separate entity, which should enhance its operational focus and streamline its path towards becoming a publicly listed company.
Previous Listing Attempts and Governance Challenges
Bithumb’s ambitions for going public are not new; back in 2020, the exchange had started preparations for a listing on the Kosdaq, South Korea’s counterpart to Nasdaq. However, these plans were derailed due to significant concerns over the company’s governance structure. Compounding these issues, legal troubles arose when the former chairman of Bithumb Holdings and Bithumb Korea, Lee Jeong-hoon, faced a prosecution probe linked to fraud allegations, which further stalled the listing process.
The Competitive Landscape of South Korean Crypto Markets
As one of the leading cryptocurrency exchanges in South Korea, Bithumb is under pressure to solidify its market position amidst the dominance of Upbit. With Upbit controlling over 80% of the South Korean crypto market, its power in both trading volume and customer engagement is substantial. Upbit’s leadership can be attributed to its early entry into the market, strategic growth initiatives, partnerships, and strict adherence to regulatory requirements, all of which have fortified its standing in the industry.
Legal Issues Surrounding Bithumb’s Leadership
Bithumb’s leadership has encountered numerous legal challenges that have raised eyebrows in the industry. CEO Lee Sang-jun has been embroiled in controversies, specifically a coin listing scandal that involved a notable golf celebrity. In addition, the company faced disruptions following a failed acquisition, leading to disputes surrounding token listings. Meanwhile, former chairman Lee Jeong-hoon was acquitted once again this year concerning a $100 million fraud case, with the Seoul High Court’s 5th Criminal Division reaffirming his earlier acquittal from January 2023. These legal battles date back to his indictment in July 2021, when he was accused of embezzlement and misappropriation of company funds.
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