Victory for Bithumb Korea in Prohibition of Delisting Injunction
2024.04.15.
Yulchon successfully represented Bithumb Korea Co., Ltd. ("Bithumb"), a company operating a virtual asset exchange, in a case where the issuer of the virtual asset, Conun Token (CON), Conun Korea Co., Ltd. (the “creditor"), filed for a temporary injunction to suspend the decision to end trading support.
The creditor claimed that Bithumb's decision to end trading support for Conun Token was made without justifiable reasons and filed for an injunction to prohibit delisting. However, Yulchon thoroughly reviewed the business-related disclosure materials and the distribution volume data of Conun Token provided by the creditor. They demonstrated that the business model of the creditor was uncertain, the excessive distribution of Cycon Tokens (which can be swapped with Conun Tokens) caused unexpected price fluctuations, and there were instances of insincere disclosures. These factors were identified as reasons for ending trading support. The court accepted all of Yulchon's arguments, ruling that Bithumb's decision to end trading support was not unreasonable and dismissed the creditor's application.
This case is important as it sets a meaningful precedent regarding the control of distribution volumes in relation to the swapping of virtual assets.
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