The South Korean cryptocurrency exchange, Bithumb, is rumored to be considering an initial public offering (IPO) despite facing financial and legal hurdles. Bithumb aims to become the first crypto exchange in the nation to go public. Confirming its interest in launching an IPO, a Bithumb official stated:
“Rumors of rival trading platform Upbit and its operator Dunamu launching an IPO on the New York Stock Exchange circulated in 2021. However, talk on this front has cooled quickly following the onset of a long crypto winter.”
Bithumb seeks to surpass its competitors by listing on the Korea Stock Exchange. The exchange has chosen Samsung Securities as its underwriter and has already begun its IPO preparations. Although an exact listing timeline and target corporate value remain undecided, Bithumb aims to complete its listing by the second half of 2025. Furthermore, it is considering the possibility of changing its listing to the KOSPI market in the future, which is equivalent to the United States’ S&P 500 index.
However, the timing of the IPO announcement couldn’t have been worse for Bithumb. The exchange released its financial performance data for the third quarter of the fiscal year, highlighting operating losses of nearly half a million USD. Sales also plummeted by over 53% compared to the previous year, resulting in a consecutive deficit. These severe financial setbacks raise concerns about the exchange’s viability in the marketplace.
In addition to financial struggles, legal issues have plagued Bithumb and its executives. CEO Lee Sang-jun has been involved in a coin listing controversy, entangling a well-known golf star. The exchange faced further turmoil due to a contentious failed takeover, which was intertwined with a token listing-related controversy. Lee recently resigned from the board of directors as part of an ongoing boardroom reshuffling. Although Lee has been acquitted of fraud charges, his case is still being reviewed by the High Court. Moreover, questions persist regarding Bithumb’s ownership structure, as allegations surfaced naming Kang Jong-hyun as the “true” owner of the exchange. Kang is currently facing trial for breach of trust, embezzlement, and stock market manipulation.
Despite the challenges, Bithumb views an IPO as a strategic move to regain public trust and narrow the gap between itself and Upbit, the dominant player in the domestic crypto market. Upbit holds over 80% of the market share, while Bithumb accounts for approximately 15%. In an effort to increase transaction volume and expand its market share, Bithumb has implemented a 0% commission policy to make its transaction prices more competitive.
Industry insiders stress the need for Bithumb to improve its management structure and enhance transparency to ensure a successful IPO. Meanwhile, legal experts highlight a potential hurdle as lawmakers consider new IPO regulations. These regulations would grant stock market officials the authority to examine the criminal records of not only the CEOs and executives of IPO candidate firms but also the owners and those with over a 10% stake in the company.
