South Korean crypto exchange Bithumb is reportedly exploring a public listing on the US tech-heavy index Nasdaq.
A local news outlet reported on Monday that the exchange disclosed this potential move at a shareholders’ meeting on Sept. 30. Moreover, the company is aiming for a listing in the latter part of next year. It has enlisted Samsung Securities as the lead manager.
In March, the exchange reportedly took the initiative to divide its Human Resources division. This step was aimed at boosting the prospects of an IPO by concentrating on its core virtual asset exchange operations. Consequently, the new business segment will be transitioned to a separate company.
Bithumb’s Kosdaq Listing Plans Stalled Amid Governance Concerns
By 2020, Bithumb was gearing up for a listing on Kosdaq, South Korea’s equivalent to Nasdaq. However, these plans were put on hold because of worries regarding the company’s unclear governance structure.
Furthermore, the 2020 endeavor faced setbacks due to a probe by the prosecution service into fraud allegations against the former chairman of Bithumb Holdings and Bithumb Korea, Lee Jeong-hoon.
Bithumb is a leading crypto exchange in South Korea, and is working to strengthen its market position in response to Upbit’s dominance. Upbit controls over 80% of the South Korean crypto market, showing its significant influence on trading and customer engagement. This dominance is driven by Upbit’s early market entry, strategic growth initiatives, partnerships and strict regulatory compliance, which have cemented its leadership.
Bithumb’s Leadership Faces Legal Challenges
Bithumb has had its share of legal controversies. The exchange’s executives and suspected owners have consistently dealt with legal issues. CEO Lee Sang-jun was involved in a coin listing scandal linked to a famous golf star. Additionally, the company faced turmoil after a failed acquisition, worsened by disputes over a token listing.
Former chairman Lee Jeong-hoon was this year acquitted of charges in a $100m fraud case for the second time. The Seoul High Court’s 5th Criminal Division recently reaffirmed Lee’s earlier acquittal from Jan. 2023 on similar fraud allegations. The trial began after Lee’s indictment in July 2021, with prosecutors accusing him of embezzlement and misappropriating funds.
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