Bithumb, one of South Korea’s biggest cryptocurrency exchanges, is attempting to disassociate itself from its former chairman amid fears that its links to him may pose a threat to its license to operate.

Fast Facts:

  • In 2018, Lee Jung-hoon, a former chairman and current shareholder of Bithumb, promoted BXA Coin and won investments worth US$26 million by ensuring that the cryptocurrency would be listed on Bithumb — but BXA coin was never listed and Lee was prosecuted for fraud on April 23.
  • In response to the law, the Korean Federation of Banks has listed 16 measures against which crypto exchanges are assessed in order to determine their eligibility to sign such contracts. One of those measures, “a history of embezzlement and fraud involving executives and employees,” constitutes the core of Bithumb users’ concerns over the future of the exchange.