South Korean crypto exchange Bithumb is considering a public listing on Nasdaq, with plans to enlist Samsung Securities as the lead manager. The exchange is aiming for a listing in the latter part of next year. In an effort to boost the prospects of an IPO, Bithumb divided its Human Resources division earlier in March. This move was made to concentrate on its core virtual asset exchange operations, with the new business segment transitioning to a separate company. Bithumb had previously planned a listing on Kosdaq in 2020, but those plans were halted due to concerns about the company’s unclear governance structure and a probe into fraud allegations against former chairman Lee Jeong-hoon.
Upbit, another major crypto exchange in South Korea, currently dominates over 80% of the crypto market in the country. This dominance is attributed to Upbit’s early market entry, strategic growth initiatives, partnerships, and strict regulatory compliance. In response to Upbit’s strong market position, Bithumb is working to strengthen its own market position. The exchange has faced legal controversies, with executives and suspected owners dealing with legal issues. CEO Lee Sang-jun was involved in a coin listing scandal linked to a famous golf star, and the company faced turmoil after a failed acquisition and disputes over a token listing. Former chairman Lee Jeong-hoon was recently acquitted of fraud charges for the second time in a $100m fraud case.
Bithumb’s potential public listing on Nasdaq is a significant move for the exchange, as it looks to enhance its market position amidst competition from Upbit. By enlisting Samsung Securities as the lead manager for the listing, Bithumb is taking steps to ensure a successful public offering in the latter part of next year. The division of the Human Resources department earlier this year reflects Bithumb’s focus on its core virtual asset exchange operations and its commitment to operational efficiency. The exchange had previously aimed for a listing on Kosdaq in 2020, but these plans were delayed due to concerns about governance structure and legal challenges faced by the company’s leadership.
The legal controversies surrounding Bithumb, including the involvement of executives in fraud allegations and other legal issues, have impacted the exchange’s business operations and reputation. The acquittal of former chairman Lee Jeong-hoon in a $100m fraud case is a significant development for the company, as it resolves some of the legal challenges faced by Bithumb’s leadership. Bithumb’s efforts to strengthen its market position and enhance its operational efficiency demonstrate its commitment to growth and innovation in the competitive crypto exchange sector. A potential listing on Nasdaq could provide Bithumb with additional resources and visibility to further expand its presence in the global crypto market.
