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Bithumb of South Korea Considers Reinstating CEO as Exchange Moves Closer to Initial Public Offering
South Korea’s Bithumb cryptocurrency exchange is considering the reappointment of its CEO, Lee Jae-won, as the trading platform aims to finalize its intended IPO.
According to Business Post, Lee’s two-year tenure as the head of Bithumb concludes later this month. However, industry experts anticipate that he will be reinstated as the company endeavors to expedite its public offering initiatives.
Trading volumes on South Korea’s Bithumb crypto exchange over the past month. (Source: CoinGecko)
South Korea’s Bithumb Aiming for National IPO First
Bithumb aspires to be the first cryptocurrency exchange to become publicly listed on the Korea Exchange.
The company has allegedly devised plans to separate some of its operations into an independent entity to accelerate the process.
Lee took on the role of Bithumb CEO in May 2022 after leading the firm’s global operations.
He previously led an attempt to initiate an IPO in 2020, which was ultimately abandoned due to issues regarding the company’s “opaque governance structure.”
This 2020 effort was also hindered by a prosecution service inquiry into fraud allegations against the former chairman of Bithumb Holdings and Bithumb Korea, Lee Jeong-hoon.
Lee Jeong-hoon has since been acquitted. Bithumb revived its IPO ambitions in November of the previous year.
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Local media indicates that South Korea is implementing significant actions to address the rise in cryptocurrency-related crimes and fraud cases by transitioning its temporary virtual asset investigative unit into a permanent organization. This move co…https://t.co/yd7EObgib1Compliance to Take Priority
The media source reported that Bithumb is still pursuing a spin-off. However, the exchange may need to postpone this as it first focuses on adhering to the Act on the Protection of Virtual Asset Users, which will come into effect on July 19, 2024.
The outlet stated that “it seems unlikely that CEO Lee will be replaced” as the firm seeks “continuity in its IPO strategy.”
Lee has also been recognized for improving the exchange’s performance during the crypto winter by temporarily eliminating commission fees.
This strategy briefly allowed Bithumb’s trading volumes to exceed those of the leading Upbit exchange.
Trading volumes on South Korea’s Upbit crypto exchange over the past month. (Source: CoinGecko)
Since then, the company has fallen behind Upbit again after reinstating commission fees. Nonetheless, Bithumb’s trading volumes have remained elevated during this period.
Insiders also suggest that Lee continues to have the support of Lee Jeong-hoon, who may soon make a “return to the Bithumb board of directors,” as noted by the media outlet.
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