법무법인(유한) 율촌 | Yulchon LLC

Yulchon, representing Bithumb Korea Co., Ltd. ("Bithumb"), a leading virtual asset exchange, in two significant injunction cases filed by SDKB Co., Ltd. (the “Applicant"), the domestic operator of the virtual asset EnterButton (currently, XENT) token. These cases involved challenges to Bithumb’s decision to terminate trading support for XENT tokens and to designate XENT as a token subject to investment warning.

The Applicant claimed that Bithumb's decision to terminate transaction support for the XENT token was unjustified and filed a provisional injunction application to suspend its effect. A provisional injunction decision was made on July 8, 2024, and the Applicant also filed a provisional injunction application to suspend the effect of the investment warning item designation decision. In response, Yulchon comprehensively reviewed the legal nature of the transaction support agreement, the legality of the clauses related to the termination of transaction support, and the progress of projects related to the XENT token in both cases. Yulchon demonstrated that Bithumb's decisions regarding the investment warning item designation and the termination of transaction support for the XENT token were lawful and justified.

The court upheld Yulchon's arguments, recognizing that: the transaction support agreement does not constitute standard terms and conditions; the provisions related to termination of trading support were not unfair to customers; and Bithumb had provided the Applicant with sufficient opportunities to explain and address the grounds for designating XENT as a token subject to investment warning, but the Applicant failed to offer satisfactory explanations or remedies. Considering these points comprehensively, the court judged that Bithumb's decisions were appropriate and dismissed all of the Applicant's applications.

This case is significant for future similar cases as it clarified the legal nature of the transaction support agreement and the scope of authority cryptocurrency exchanges hold in managing token listings., Furthermore, it provides critical guidance on balancing investor protection with exchange autonomy, offering an important precedent for similar cases in the virtual asset market.